If your situation isn’t too complicated, i.e., you have only a single source of income, limited investment capital gains, a business owned entirely by you and many expenses that you can deduct, then preparing taxes is something you can do on your own or with the help of an accounting software. But, if that isn’t the case and your situation is more complicated, then hiring a tax accountant in lake Nona, FL may be a good option for you.
With the help of the tax accountant, you will be able to understand the deductions and exemptions you’re eligible for, which in turn will make tax preparation easy for you. If you want to make your life easy and straight forward, then consider hiring a tax accountant in lake none, FL. Not only will this help you to prepare taxes easily, but it will also help you create opportunities for expansion that seemed impossible before.
Reasons You need a Tax Accountant in Lake Nona, FL
For some people, managing and preparing taxes is not that difficult but even such people would admit to the fact that tax preparation is a time-consuming tax that they’d wish someone else would handle for them. The good news is that there are professionals out there that can handle tax preparation for both individuals and businesses and those professionals are called tax accountants.
A tax accountant in lake Nona, FL can make tax preparation easy and uncomplicated for you. If you thought that paying taxes was only about filing your taxes with the IRS, then think again. Tax preparation includes a lot more and you are likely to require help for it if any of the following situations apply to you or your business.
Your Annual Earnings Exceed Two Hundred Thousand Dollars
One of the biggest reasons to hire a tax accountant in lake Nona, FL is annual earnings in the thousands. The more you earn, the higher are your chances of being audited by the IRS. For instance, if you earn less than hundred thousand a year then your chances of being audited by the IRS are below 1%.
This probability increases to 5-7% when you earn $2,00,000 or more per year. And, when your annual earning is more than a million dollars, then this probability increases to over 15%. By hiring a tax accountant in lake Nona, FL, you can successfully deal with this audit or in the best-case scenario, avoid it completely.
Alternative Minimum Tax (AMT) May Apply to You
AMT or Alternative Minimum Tax is something that applies to many businesses. Some of the common things that activate this tax include high state income tax, an employee incurring massive business expenses, selling qualified business stock, fees for investment advice, and use of International Organization for Standards (ISOs).
To put simply, filing taxes becomes complicated for you or your business when you have to pay Alternative Minimum Tax (AMT). And, AMT is one of the reasons many businesses hire a tax accountant in lake Nona, FL for preparing and filing taxes. So, if AMT applies to you, consider hiring a tax accountant in lake Nona, FL.
You are a Recipient of K-1s
Shareholders or partners in an S-corporation are often the recipient of a K-1. In case you don’t know what a K-1 is, the here is some useful information for you. A tax document, K-1 is used by a partnership to report its income, losses and dividends. A document prepared for each individual partner, K-1 is included with the personal tax return of the partner. At times, K-1 are issued by some Exchange Traded Funds (ETFs) as well. While some K-1s are easy to include in your tax return, there are many that you can include only after consultation or help from a tax accountant in lake Nona, FL.
You Are Self-Employed, A Business Owner, Or Owner of Properties
Are you a self-employed individual, an owner of a business, or someone who owns properties? If yes, then you need to be extremely careful when preparing taxes. In addition to helping you prepare taxes appropriately, a tax accountant in lake Nona, FL can depreciate your business assets or real estate to help you minimize your taxes and keep them low.
You are in Possession of Material Foreign Source Income
A reason to hire a tax accountant in lake Nona, FL that many people ignore is having material foreign source income. Contrary to popular belief, this is applicable to a host of businesses including foreign companies, mutual funds or stocks, and Exchange Traded Funds (ETFs). So, find out if the income you have qualifies as material foreign source income and if it does, then get tax preparation help from a tax accountant in lake Nona, FL.
You are Planning to Sell Some Properties
Are you planning to sell some of your properties in the near future? If yes, then you’d do well to hire a tax accountant in lake Nona, FL. With the help of a tax accountant in lake Nona, FL, you will be able to lower the tax payments on the sale of property you are considering selling.
You Foresee A massive Capital Tax Gain
If you anticipate a massive capital tax again, then consider hiring tax accountant in lake Nona, FL for tax preparation purposes. By helping you plan for the tax, a tax accountant will ensure that the capital gain is taxed at long-term rates, which will help lower your taxes. So, hiring a tax accountant makes a lot of sense for you if you foresee a massive capital gain.
You are Saving Money for the Future
If you planning to save for the future, then taking help from a tax accountant in lake Nona, FL to prepare taxes is recommended. Whether you are creating a trust for your kids or a plan for college saving, a tax accountant can enable you to save money during tax time by helping you pick the vehicles for tax-free or tax-deferred saving.
You are Planning a Large Gift
Contrary to popular belief, this is not a simple transaction to deal with. However, you can make it easy by taking help from a tax accountant in lake Nona, FL. The tax accountant will make you aware of the tax benefits of the various possibilities including hiring a donor advised fund, or using your retirement plan as a source of funds, allowing you to choose a possibility that best fits your needs while helping you lower your taxes.
There you have it—nine reasons to hire a tax accountant in lake Nona, FL. There are many other reasons to hire the services of a tax accountant but the above reasons are things that necessitate taking help from a tax accountant in lake Nona, FL. With help from a tax accountant, not only will you be able to prepare your taxes easily but you will also be able to minimize your tax bill. With the reasons to hire a tax accountant covered, let’s move onto the ways to choose the right tax accountant for yourself. So, here we go.
How to Choose the Right Tax Accountant in Lake Nona, FL
What is the first reaction of most people when someone tells them that they have a hired a tax accountant for preparing taxes? Mostly a dazed look at the person telling them about it but they shouldn’t be doing that. As seen above, there are many situations that necessitate hiring a tax accountant in lake Nona, FL and most people are likely to find themselves in at least one of those situations.
Often, there is a misconception among people that only rich people or those with complicated tax situations hire tax accountants but that isn’t true. Tax accountants can help people with all sorts of budgets and tax situations to get tax benefits and lower their tax bill. However, before you give your hared earned cash to a tax accountant, make sure that the tax accountant can provide you something valuable in return. It is extremely important that you find a suitable accountant for your situation.
By doing the above, you will not only save your hard-earned money from going to waste but will also lower the taxes you need to pay. Additionally, this will help you to avoid any potential trouble with the Internal Revenue Service (IRS). So, before you choose a tax accountant for yourself, look around, shortlist accountants, interview them, and the pick the one that best fits your needs. Following are some tips to choose the right tax accountant in lake Nona, FL.
Determine Why You Need a Tax Accountant
The first step to choose the right tax accountant for yourself is determining why you need a tax accountant. Why do you need a tax accountant? To find this out, take out some time to consider the things that may make it necessary for you to hire a tax accountant in lake Nona, FL. Following are some potential reasons for hiring a tax accountant:
- Tac preparation is confusing, stressful or time-consuming for you
- You have a complicated tax situation, and you need the help and advice of a tax professional or specialist
- You want to ensure accurate tax returns
- You’ve bought real estate, invested in stocks, or started a business
- You’re faced with a tax problem such as an IRS audit, tax debt payment, or filling back taxes
- Going forward, you want detailed tax planning advice
Once you’ve determined which of the above situations apply to you, you can, you can move onto the ways to find the right tax accountant for yourself.
Once you know the reason(s) you need a tax accountant, ask you friends, colleague, neighbors or relatives for referrals. Tell them why you want a tax accountant and they will direct you the relevant tax accountant.
An often overlooked but extremely important part of finding the right tax accountant is checking or verifying credentials. Tax preparation expertise is something many CPAs possess, but all tax preparers are not CPAs. Things that separate CPAs from other tax preparers include education and experience. Complying with a broad range of tax ethical standards and code of conduct and satisfying many continuing education requirements is required by CPAs. Also, a CPA has a valid license for performing his or her duties. To confirm the above things if you want to hire a CPA for tax preparation purposes.
Interview the Shortlisted Tax Preparers
After you’ve shortlisted the tax preparers based on your need, start interviewing them. When you meet the potential tax preparers, ask them about their area of expertise and if they’ve previously helped people/businesses in the same tax situation as you. Also, ensure that they will be available year-round to help you with the taxes. By determining the above, you will be in a better position to choose the right tax accountant in lake Nona, FL for yourself.
Confirm Their Experience With the IRS
An important thing to do when choosing a tax accountant in lake Nona, FL is checking and confirming the tax accountant’s experience with the IRS. One of the surest ways to confirm an accountant’s experience with the IRS is confirming their IRS Preparer Tax Identification Number (PTIN) status. Anyone with a PTIN issued by the IRS is bound to have a working relationship/experience with the IRS.
By following the above, tips, you will be able to find the right tax accountant in lake Nona, FL. By preparing your taxes appropriately, the right tax accountant in lake Nona, FL will help you to get tax benefits and minimize your tax payments.