Now that we are in the 4th quarter of 2022, it’s a good time to start looking at ways to reduce your 2022 tax liability. Even though you might not know your tax liability until you file your tax return in April (or October) of 2023, in order to take advantage of some key tax-saving tools, many tactics require you to take action before the end of the calendar year.
NOTE: Our office will close on Thursday, December 15, 2022 to reopen on Monday, January 9, 2023, so any Solo 401k account(s) that needs to be established or 4th quarter state estimated tax payment(s) that needs to be generated has to be completed by December 13, 2022. We would not be addressing any tax planning-related items during the break from December 19, 2022 – January 9, 2023.
Please have the following items required for your year-end tax planning ready. You can either upload the documents to the online Portal created for you at SecureFilePro, fax them to 1-866-466-3146, email us at [email protected] or upload them to our dropbox at [email protected]. We can resend the link to the online Portal upon request. Once we review them and we determine that we need to make some changes before December 31st, we would call you to schedule your year-end tax planning appointment.
ITEMS NEEDED FOR THE 2022 YEAR-END TAX PLANNING
1. PAYSTUBS:
a – Most Recent 2022 Paystub (wage or retirement).
b – Final 2021 Paystubs (so we can reconcile the taxable wages)
2. BUSINESSES:
a – YTD business income and expenses (or best estimate).
b – YTD business miles (or best estimate).
c – Articles of Organization, EIN Letter, and Operating Agreement, (If we do not have it already)
3. Copies of 2 most current tax returns (If we did not prepare)
4. Any Stock or Virtual Currency sales this year? If so, provide estimates of:
a – Sales proceeds.
b – Original cost basis/purchase price.
5. Confirm if we should use the 2022 figures for the following items as applicable. Otherwise, provide the 2022 YTD information.
a – Interest Income.
b – Dividend Income.
c – Health insurance and Medical expenses.
d – Cash and non-cash charitable donations.
e- Mortgage Interest and Real Estate Taxes on your primary residence or provide the most current Mortgage Statement.
6. EXISTING RENTALS:
a – YTD Rental income and expenses.
b – Most recent Mortgage Statement(s).
c – Confirm if we should use the 2021 numbers for the above two items.
7. NEW RENTALS:
a – Rental income and expenses.
b – Purchase Hud-1.
c – Date it became available for rent/occupancy. That is when it was listed for rent.
d – Out-of-pocket rehab and improvement costs.
d – Hazard/Homeowner’s insurance.
e – Most recent Mortgage Statement(s).
8. REHABS/FLIPS (needed to calculate the capital gain (loss):
a – Purchase Hud-1 or Purchase Closing Documents.
b – Sale Hud-1 or Sale Closing Documents.
c – Out-of-pocket rehab and improvement costs incurred from inception (purchase of property) over and above rehab loans.
d – Holding Costs (Interest, Taxes, Insurance(hazard/homeowner’s), Utilities, etc)
e – Any other costs incurred out of pocket.
9. For properties foreclosed or sold through a short sale, paperwork associated with the foreclosure and short sale.
10. Any Fed and State estimated tax payments.
11. SIGNIFICANT LIFE EVENTS: A list of any significant life events that happened in 2022 such as a – Birth (provide DOB).
b – Marriage (provide spouse’s Name and DOB).
c – Death (provide DOD).
d – Divorce (provide date divorce was finalized).
e – Relocation (provide States of Residence and Periods of Residence in each state).
f – Others – retirement, job loss, new business, etc.
FEES:
– Active Wealth Building Plan Clients – Free.
– Non-Wealth Building Plan Clients – $599(50% will be credited to 2022 tax prep)
The 2022 Year-End Tax planning will commence on Tuesday, November 1 through Tuesday, November 22. Our office will be closed from Wednesday, November 23 – Friday, November 25 in observance of the Thanksgiving Holiday. Year-End Tax Planning Appointments will resume on Monday, November 28, 2022, and will end on Friday, December 9, 2022.
We will only schedule appointments once we have completed the tax planning analysis. It is important that you have all the items requested at least 2 WEEKS before your PREFERRED meeting date. You can either upload the documents to the online Portal created for you at SecureFilePro, fax them to 1-866-466-3146, email us at [email protected] or upload them to our dropbox at [email protected].
If you have any questions or concerns, please call the office at 301-441-4538
CONTACT THE WBCPA TEAM FOR TAX HELP
USE CODE ” BOSTON REIA ” FOR DISCOUNT