Nonprofits

Whether you’re a not-for-profit corporation or a private foundation, we can ensure you’re in compliance with the IRS [Form 990], FTB [Form 199], Registry of Charitable Trusts [Form RRF-1], or any other state agency as far as filing the annual tax returns. Tax returns for nonprofits require quite a bit of information in order to be transparent with the public. If the tax-exempt entity has taxable income [such as investments and other unrelated business income] over a certain amount, we can prepare the Form 990-T as well. If you’re unsure if there’s a reporting requirement, we can advise you and file accordingly.

C-Corporations

C-Corporations require annual tax returns [1120] and any record of distributions to shareholders to be filed on form 1099-DIV. The profits of C-Corporations are potentially taxed twice: at the business level and owner level. We can assist you with the preparation and compliance of all required tax forms.

Pass-throughs

Pass-through entities are ones whose income (and losses) get taxed at the owner level. There are 3 main types of pass-through entities: S-Corporations [1120S], Partnerships [1065], and Proprietorships [1040, Schedule C/E/F]. LLCs are entities who shield their owners from the company’s debts or liabilities and can be taxed either as a partnership [multiple members] or as a proprietorship [single member]. Pass-through entities require basis reconciliation. This involves keeping track of the income & losses [both taxable/nontaxable and deductible/nondeductible] and any additional capital brought in by an owner or any distributions an owner may take from the entity. It’s important to keep an eye on owner basis because you want to make sure all potential deductions and losses can flow to the personal level and offset the owner’s taxable income. You also want to ensure all your distributions won’t trigger a capital gain tax if they exceed your basis. We can assist with the annual filing of the pass-through entity’s tax returns, the preparation of the pass-through K-1’s, and the reconciliation of basis for all the owners.

Personal

We provide a wide array of tax filing services at the individual level [1040]. Whether you’re filing single, married filing joint, married filing separate, or head of household, we can assist with advising you on the best case scenario that will minimize your tax liability. We get a big picture of you and your dependents and if you have a spouse and can provide scenarios on each filing status you qualify for.

If you are going through a divorce and need to determine community property versus personal property, we can advise on these sensitive issues as well. Whether the divorce is final or not, we can ensure all your assets and income are reported correctly for each spouse’s tax return.

Death and Disability

If you are a trustee, executor, or beneficiary of a trust or estate, we can file the annual tax return [1041] and all of the K-1’s that belong to the beneficiaries set forth on those documents. We examine all of the documents created by the grantor, determine the beneficiaries and bequests, and file the tax return as set forth by the grantor. We can assist with the reconciliation of all income and distributions from the trust/estate to the beneficiaries.

We also assist in disability trusts which are created for the sole purpose of caring for a disabled person in the event of their caretaker’s [grantor’s] death. An annual tax return can be filed along with all necessary K-1’s to the beneficiaries stated in the trust documents.

Property Transactions Analysis

One of the biggest difference between financial statements and tax returns are the carrying values of property, equipment, and investments. These are the largest assets a business or individual can own. They can be purchased, sold, inherited, bequeathed, gifted, contributed, or distributed to/from an individual. Tax consequences vary for the types of transactions that transferred property trigger. We can assist with ensuring these different types of transactions are recorded correctly and that tax returns can reflect the outcome correctly.

Certain business assets are subject to different types of depreciation. Depreciation is a write-off that taxable entities can take to reduce their tax liability at the entity/owner level. There’s Section 1231, 1245, 1250. There’s bonus depreciation, Section 179, and other accelerated depreciation. We can run scenarios on the assets your business is acquiring or constructing and explain how it can benefit you. If you plan on selling assets that are subject to built-in gains or Section 1031 exchanges, we can advise and assist on the tax reporting.

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