Patrick A Falcon PC
Question: Is there anything wrong with getting a big income tax refund every year? Answer: Yes, it means you’re giving the IRS an interest-free loan when you could have the use of that money during the year to invest for yourself. As early as possible each year, you should take the time to estimate your…
read moreQuestion: Are unemployment benefits subject to federal income tax? Answer: Yes, unemployment benefits are subject to federal income tax. The government unit that paid you should provide you with a year-end statement (Form 1099-G) showing the amount that is to be included as income on your tax return. To avoid having a large tax balance…
read moreQuestion: What is a tax-deferred (tax free) exchange? Answer: Tax-deferred exchanges are often referred to as tax-free. Certain exchanges allow investors to trade one piece of property for another piece without paying income tax on the transaction. If you sell a piece of business or investment property for cash, you may owe tax on the…
read moreQuestion: What tax bracket am I in? Answer: Your tax bracket (marginal rate) refers to the highest tax rate at which a portion of your income is taxed. In other words, the percentage that you will pay in taxes on your next dollar of taxable income. For example, the 2015 tax rates for a single…
read moreQuestion: Are my social security benefits taxable? Answer: Up to 85% of social security benefits can be taxed. Whether your benefits will be taxed depends upon your total income from both taxable and tax-exempt sources. Once your total income reaches $25,000 ($32,000 for married couples), a portion of your benefits will be subject to income…
read moreQuestion: How long should I keep my tax records? Answer: Just how long to keep your records is a matter of judgment and a combination of state and federal statutes of limitation. The IRS can audit your return for up to three years after you file a return. However, if you omit more than 25%…
read moreQuestion: Should my corporation own our business building or should I own it personally? Answer: If your business is incorporated, it is often a good idea to personally own the real estate occupied by your corporation. If appreciated real estate is sold by a regular corporation, the gain will be subject to double taxation if…
read moreQuestion: What can an accountant do for me? Answer: A good accountant can do more than just prepare your tax return. He or she can assist you with – accounting and recordkeeping income tax planning business planning and problem solving computer selection and use estate tax planning bank loan assistance your other tax, business, and…
read moreQuestion: What kind of penalties will I be charged if I pay my taxes late? Answer: If you fail to pay all your taxes by the April 15* deadline, you’ll have to pay the IRS interest and penalties on your underpayment. The IRS charges interest at its prevailing rate, which it publishes quarterly. The late…
read moreQuestion: What if I owe more money to the IRS than I can pay? Answer: The IRS offers several options to taxpayers who cannot pay their taxes in full when they file their return. 1) You can charge your taxes on a credit card. The IRS’s credit card service providers charge a “convenience fee” of…
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