Is Your CPA Just Checking Boxes and Filling In Blanks?

SJ Gorowitz CAS Technology

By Stacey Gorowitz, CPA, MBA Taxes are the first thing most people think of when they think of their CPA. In fact, the need for help completing their annual returns most likely drove them to seek the assistance of an accountant in the first place. It’s an important task, without a doubt. At the same time, preparing tax returns can almost be viewed as a commodity in some cases. Filling in the blanks is all it amounts to, sadly, from many service providers. Finding someone to fill in the blanks on the right generic forms for your business or personal return isn’t a challenge. Finding someone who really gets to know you and your company, however, isn’t so easy. It’s worth it to make the extra effort and search until you’ve found the right fit though, because with a well matched CPA who’s motivated and knowledgeable, the difference is astounding. By putting in the time and attention to understand the nuances of your financial situation – your goals, your unique business, your … [Read more...]

You Can’t Transfer Tax Attributes – Or Can You?

catchingfireset

Did you pay a lot in state taxes this year? You can potentially save 10% or more. Sounds like one of those too good to be true commercials, doesn’t it?  The majority of my blogs try to dissuade tax myths and educate business owners and individual taxpayers on some of the nuances of tax law, but this unlikely-sounding scenario is no myth. Normally, the income, expenses and credits you earn are yours and can’t be transferred to someone else – not even your children. However, there is one situation where one taxpayer can acquire the tax attributes of another: state tax credits. Georgia has a law that allows certain tax credits earned by one taxpayer (usually a company) to be purchased at a discount and used by another taxpayer (usually an individual). That’s right, you can purchase tax credits. For example, an individual taxpayer can purchase $50,000 of GA Entertainment Tax Credits for $45,000. You write a check for $45,000 but a credit of $50,000 gets reported on your Georgia … [Read more...]