Phoenix Arizona CPA | Arizona Tax Accountant | Arizona Income Tax

A tax write off is the same thing as a tax deduction, and if you don’t know what expenses are legitimate deductions on your tax return, you won’t know what you can legitimately write off either.  In the case of tax write offs, what you don’t know can be very painful indeed.

Tax write offs are taken by business owners and are items which in normal circumstances might not be allowable deductions but become so when the situation of a business changes. Read the rest of this entry »

As a landlord, you will want to make sure you take advantage of all of the tax benefits you can receive by owning a property. There are many other deductions than just the obvious ones. Expenses incurred to cancel a lease, reimbursements to renters for expenses that they have incurred and many others exist. Make sure you are taking advantage of all of the expenses you have. Read the rest of this entry »

Here’s a question I get a lot from sole proprietors: why aren’t my personal expenses deductible? Here are three ways to think about this.

1. Personal expenses are not needed to create business revenue. Some sole proprietors reason that since they need their personal expense (such as non-business car use or a vacation), that means their business needs it too, since the sole proprietor is the business. If you are a sole proprietor, ask youself this question when deciding if the expense is deductible: Read the rest of this entry »

Are you ready for a productive Tax Planning Season with knowledge and understanding of how to plan for your Tax Preparation in January? With a little planning this fall, you too can save money on your taxes in the Spring.

Recently, I had a tax client come by after she received a letter from IRS. She was understandably concerned, but her manner was rude, full of entitlement, and demanding. I responded to her rude demands with polite and courteous answers, and spent several hours on the phone researching her problem. On several occasions during the process of answering her questions, I had to call and ask for more information, each time she got ruder and more demanding. Read the rest of this entry »

Progressive taxation is defined as a form of tax that charges a bigger percentage rate on the income of high income group than it does on the income of low income group. As the income of the individual increases, the tax rate he pays also increases proportionately. So this is a sort of graduated tax. The rationale behind such a taxation principle is that those who earn more can save more and therefore, should pay more to the government. Read the rest of this entry »

Knowing income tax law is not enough. In order to offer value to taxpayers, tax law knowledge must be combined with effective tax planning strategies in order to yield maximum benefit. What would you do if you owned a landscaping business with the upcoming facts and circumstances? I will tell what I would do.

While having a quiet night out at a local restaurant, listening to music from a local band, I am approached by a friend that has just started a landscaping business. He is married and has one young daughter, age twelve. He will have gross receipts of $48,000 and will receive a 1099 for his efforts. His first question to me is how he should go about making quarterly estimated tax payments to cover both income tax expense and social security tax (SE tax). My response to him was; “hold on there young fellow. Let’s have a discussion of the facts and circumstances before we begin”. Read the rest of this entry »

IRS is like a silent business partner.  They usually accept your annual tax return as a legal record of how much you owe them!  However, like any good business partner, they may have a few questions.

And when your silent business partner ask questions, you may find your self needing a reliable and solid defense system.

One such system cost about $12.00 and can be found at your local office supply store. Read the rest of this entry »

Taxes are a fact of life, something that you can not get around.  Or, can you?  With the right education and a bit of financial know how there are many things that you can do to pay less in taxes and to have more money to live your life.  Best of all, these are all things that you can do legally and without having to worry about having an IRS audit in the process!

Tip 1:  Hiring A Professional Team Read the rest of this entry »

Filing taxes is not an easy task and even the most careful person can make mistakes. The Internal Revenue Service has created an easy to use check list of    the most common errors encountered in tax returns.

According to experts you must fill in the tax return forms keeping sufficient time to check the tax return and make sure it is error free. Keep the checklist handy and go through it once before finalizing your tax returns this may help you avoid errors. Read the rest of this entry »

Big business enjoys huge tax advantages by creating Captive Insurance Companies. Successful PCs can also use this powerful tool for wealth accumulation and risk management.

Keego Harbor, Michigan.  May 11, 2007 – In 25 years of developing asset management plans for physicians and other entrepreneurs, Keith L. Mohn, CLU, CHFC, CAPP, CWPP has seen every financial planning technique. He helps PCs achieve their wealth accumulation and transfer goals with the  “captive insurance company (CIC).” Read the rest of this entry »