1031 Exchange Uses On A Denver Tax Return
September 5, 2018
Many individuals do not know or understand some of the different options available to them when completing a yearly tax return. Not to say individuals or families are attempting to forge an idea or cover a source of income, as most everyone is attempting to legally complete their return, but many are unfortunately unaware of the various possibilities available to them. These methods can be both cost effective and educational once analyzed and appropriately administered. Depending on your personal finance situation and how monies were spent and received during the calendar year for the return, one such option would be a 1031 Exchange, if a qualifying transaction was completed.
The 1031 or “Like-Kind Exchange†allows someone to take money earned from the sell of a property and put it back into the purchase of another, while deferring any capital gains taxes from the initial purchase. Capital gains taxes are typically paid on the difference in how much an entity was purchased for versus the corresponding sale price.
These 1031 exchanges are useful when someone utilizes them in any of the following scenarios.
An individual can sell one business and then reinvest any profits into the purchase of another business. The type of businesses involved in the transaction do not necessarily have to be identical. Instead, so long as both are business entities the tax deferral can be used if the like kind exchange is completed within the appropriate time frame.
One of the more common uses, real estate sales and investments often present suitable like kind transaction opportunities. Profits from one property can be reinvested into another, if all timeline restrictions are followed.
Originally, like-kind exchanges for farmer’s was the premise behind developing a tax deferred system for profits. These individuals were routinely selling and then reinvesting money immediately back into their livelihood and the same applies today.
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This category varies but if there are other qualifying elements which may fit into the like-kind transaction then use of this method could be beneficial.
If you need help in determining which transactions you have completed may qualify for a 1031 exchange or if the two properties used carry a like-kind agreement then we can help. Offering assistance in determining an appropriate course of action for individuals who wish to find out more about this process, the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you. Our associates work with you to help ensure all your tax requirements are met appropriately and distributed in a timely manner. Known for also providing payroll assistance, they can help with a variety of accounting, bookkeeping and essentially any aspect on either the individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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The 1031 or “Like-Kind Exchange†allows someone to take money earned from the sell of a property and put it back into the purchase of another, while deferring any capital gains taxes from the initial purchase. Capital gains taxes are typically paid on the difference in how much an entity was purchased for versus the corresponding sale price.
These 1031 exchanges are useful when someone utilizes them in any of the following scenarios.
Businesses
An individual can sell one business and then reinvest any profits into the purchase of another business. The type of businesses involved in the transaction do not necessarily have to be identical. Instead, so long as both are business entities the tax deferral can be used if the like kind exchange is completed within the appropriate time frame.
Real Estate
One of the more common uses, real estate sales and investments often present suitable like kind transaction opportunities. Profits from one property can be reinvested into another, if all timeline restrictions are followed.
Livestock
Originally, like-kind exchanges for farmer’s was the premise behind developing a tax deferred system for profits. These individuals were routinely selling and then reinvesting money immediately back into their livelihood and the same applies today.
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Other
This category varies but if there are other qualifying elements which may fit into the like-kind transaction then use of this method could be beneficial.
If you need help in determining which transactions you have completed may qualify for a 1031 exchange or if the two properties used carry a like-kind agreement then we can help. Offering assistance in determining an appropriate course of action for individuals who wish to find out more about this process, the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you. Our associates work with you to help ensure all your tax requirements are met appropriately and distributed in a timely manner. Known for also providing payroll assistance, they can help with a variety of accounting, bookkeeping and essentially any aspect on either the individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
Denver Tax Specialist Highlights ‘Gift Tax’ Changes for 2018
August 29, 2018
Everything has a price and depending on the demand or need, some of those prices can grow or decrease substantially but the value of something is entirely different. Value, is the amount someone believes that a particular item may be worth to them. Instead of looking at price, a product of worth and effort in getting rid of an item or subject, the value is significantly important and used in a variety of methods, including by the federal government to institute a tax on items of large value or cumulative gifts given to another person throughout the tax year.
The family dynamic is likely a most common cause for a gift exchange but there are a variety of other scenarios which can constitute a gift and resulting tax implications. Although, gifts from one individual to their spouse are typically not counted, sometimes cases exist where gifts to your spouse are taxable. In these situations, the tax would apply to one spouse and may be counted against their return for the year depending on the amount and reasoning behind the gifted money.
Changing for the 2018 tax year, gift tax maximums have been raised allowing individuals to award monies to other parties at an increased rate. Until this year, the maximum allowable gift amount was set at $14,000 before the gift tax began to be applied. Beginning with this tax year, a $1,000 increase was added increasing the amount of money allowable to be distributed without the tax penalty.
Individuals or groups who are giving money to another party are responsible for paying the amount incurred from a gift tax but recipients may also be subject to paying, depending on the particulars of a situation. Both parties may elect to split the tax applied for different reasons, but each component must be taken into consideration as every situation is going to be different and thus interpreted with varying degrees. Also, though the gift tax may be paid by the individual making a contribution, a recipient may then be subject to paying income tax on the money received depending on amount and their current tax situation.
There are a few exceptions to the gift tax adherence which according to the Internal Revenue Service (IRS) will not count toward the application. These different payments, either to an individual or entity can be made without fear of any negative tax implications for the year.
As with almost any tax situation there are varying degrees to which the law may be interpreted but there are clear and coherent outlines in order for individuals to follow. Depending on your particular situation, seeking the advice of a trained professional who understands both how and why specific taxes make such a difference when applied can be critical to the success of your ability to execute a gifting transaction with the desired purpose being administered.
If you need any assistance in determining an appropriate course of action for gifting funds or should you be on the receiving end, the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you. Our associates can help ensure your tax requirements are met appropriately and distributed in a timely manner. Known for also providing payroll assistance, they can help with a variety of accounting, bookkeeping and essentially any aspect on either the individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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The family dynamic is likely a most common cause for a gift exchange but there are a variety of other scenarios which can constitute a gift and resulting tax implications. Although, gifts from one individual to their spouse are typically not counted, sometimes cases exist where gifts to your spouse are taxable. In these situations, the tax would apply to one spouse and may be counted against their return for the year depending on the amount and reasoning behind the gifted money.
Gift Tax Changes
Changing for the 2018 tax year, gift tax maximums have been raised allowing individuals to award monies to other parties at an increased rate. Until this year, the maximum allowable gift amount was set at $14,000 before the gift tax began to be applied. Beginning with this tax year, a $1,000 increase was added increasing the amount of money allowable to be distributed without the tax penalty.
Individuals or groups who are giving money to another party are responsible for paying the amount incurred from a gift tax but recipients may also be subject to paying, depending on the particulars of a situation. Both parties may elect to split the tax applied for different reasons, but each component must be taken into consideration as every situation is going to be different and thus interpreted with varying degrees. Also, though the gift tax may be paid by the individual making a contribution, a recipient may then be subject to paying income tax on the money received depending on amount and their current tax situation.
Gift Tax Exemptions
There are a few exceptions to the gift tax adherence which according to the Internal Revenue Service (IRS) will not count toward the application. These different payments, either to an individual or entity can be made without fear of any negative tax implications for the year.
As with almost any tax situation there are varying degrees to which the law may be interpreted but there are clear and coherent outlines in order for individuals to follow. Depending on your particular situation, seeking the advice of a trained professional who understands both how and why specific taxes make such a difference when applied can be critical to the success of your ability to execute a gifting transaction with the desired purpose being administered.
If you need any assistance in determining an appropriate course of action for gifting funds or should you be on the receiving end, the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you. Our associates can help ensure your tax requirements are met appropriately and distributed in a timely manner. Known for also providing payroll assistance, they can help with a variety of accounting, bookkeeping and essentially any aspect on either the individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
What Denver Business Tax Preparation Designation Is Right for You
August 15, 2018
An entrepreneur is someone who creates a business and essentially begins to operate it in every aspect. Taking something that once wasn’t available and finding a way to make it happen, these individuals often risk much of their personal finances in order to achieve success. There are many positive stories associated with entrepreneurs but much of the failures may not be as prevalent or advertised.
These consequential mistakes are often the building blocks of what ultimately allowed someone to be successful. While there downfalls aren’t necessarily highlighted, it is rare that someone finds amazing success on their very first idea and attempt. Also, when creating a business and establishing a market presence, the owner must determine which registered type of organization will best serve their individual needs and those of the entity created.
Following is a brief description of the many common business types utilized by self-employed entrepreneurs and the implications of taxes and legal matters associated with each.
One of the easiest forms of businesses to understand and employ, a sole proprietorship is essentially an operation ran in the name of the owner. There is no real separation from an individual’s personal finances and income in relation to the company and no legal measurement.
For tax purposes, the individual reports income on their personal return and also bears the financial responsibility associated with any debts owed.
This is a sole proprietorship extended between two or more people and then executed appropriately. The split can be at any regulation agreed upon by those involved and the liability issues fall under one of two categories.
A general partnership spreads the liability to all involved equally but limited liability means the onus may fall on one person more than another.
The largest of business types, corporations are generally divided into two different varieties. These two, designated with an S or C, share multiple similarities and differences between an s-corporation vs. a c-corporation depending on the goals of the company and business being offered. An election or certification shouldn’t be made without consulting a professional for their expert opinion on which offers the most rewarding circumstances for the specific opportunity.
Fortunately, the legal implications of each are completely separate from the personal finances of those involved, offering the most legal protection for business owners.
If involved with starting a business and in need of assistance for determining which representation is right for you, the accounting experts at Bloch, Rothman, and Associates will be happy to help you. Our trained associates can help ensure your tax implications for each type and assist in finding the most beneficial type of designation for your business. Known for also providing excellent service in payroll assistance, Bloch, Rothman, and Associates can help with a variety of accounting or bookkeeping needs. Whether you require an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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These consequential mistakes are often the building blocks of what ultimately allowed someone to be successful. While there downfalls aren’t necessarily highlighted, it is rare that someone finds amazing success on their very first idea and attempt. Also, when creating a business and establishing a market presence, the owner must determine which registered type of organization will best serve their individual needs and those of the entity created.
Following is a brief description of the many common business types utilized by self-employed entrepreneurs and the implications of taxes and legal matters associated with each.
Sole Proprietorship
One of the easiest forms of businesses to understand and employ, a sole proprietorship is essentially an operation ran in the name of the owner. There is no real separation from an individual’s personal finances and income in relation to the company and no legal measurement.
For tax purposes, the individual reports income on their personal return and also bears the financial responsibility associated with any debts owed.
Partnerships
This is a sole proprietorship extended between two or more people and then executed appropriately. The split can be at any regulation agreed upon by those involved and the liability issues fall under one of two categories.
A general partnership spreads the liability to all involved equally but limited liability means the onus may fall on one person more than another.
Corporations
The largest of business types, corporations are generally divided into two different varieties. These two, designated with an S or C, share multiple similarities and differences between an s-corporation vs. a c-corporation depending on the goals of the company and business being offered. An election or certification shouldn’t be made without consulting a professional for their expert opinion on which offers the most rewarding circumstances for the specific opportunity.
Fortunately, the legal implications of each are completely separate from the personal finances of those involved, offering the most legal protection for business owners.
If involved with starting a business and in need of assistance for determining which representation is right for you, the accounting experts at Bloch, Rothman, and Associates will be happy to help you. Our trained associates can help ensure your tax implications for each type and assist in finding the most beneficial type of designation for your business. Known for also providing excellent service in payroll assistance, Bloch, Rothman, and Associates can help with a variety of accounting or bookkeeping needs. Whether you require an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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Denver Tax Return Estimates Application and Benefit
August 8, 2018
Every American is responsible for paying their fair share of taxes to the United States government both throughout the year via withholdings and once filing takes place typically between January and April. While most would argue their contributions are way more than a “fair†share, certain individuals are advised or potentially required to make quarterly contributions in excess of their current tax input called, “estimated tax.â€
This estimated tax doesn’t apply to everyone but there are certain situations which will influence your tax status and potentially cause you to qualify for estimates. These taxes are paid in on income received that otherwise does not apply to the withholding elements of money received. Most common is self-employed income but other factors which can formulate an individual to become responsible for estimates include: business earnings, dividends, interest income or rent payments and a few other sources.
If within a single year you owe either $1,000 or more to the Federal Government then the Internal Revenue Service (IRS) expects you will pay estimated taxes on qualified income. These individuals are often subject to that requirement for estimated tax application.
• Self-Employed or Sole Proprietor. Both entities need to consider making estimated tax allotments, especially if their perceived income is expected to surpass $1,000 in tax liability over a given year. Even part-time individuals should be considering estimates as they are subject to the same expectations and requirements of their full-time counterparts.
• Partners and Corporations. Similar to individuals who function under one of the previously disclosed methods, both partnerships and corporations are influenced to make estimates based on their tax liabilities. For all types of corporations, payments are expected at half the rate of an individual, meaning $500 in liability should signal a need for the quarterly payment to get ahead.
• Prior Year Owed. Individuals or other entities which owed tax at the end of a previous cycle should investigate the reason for their withholding. Typically, not enough money was taken from a paycheck or profit and thus more should be kept in the coming year to offset the potential costs.
By investigating the cause for such an underpayment and making up the difference via an estimated tax payment in the current year, a potential refund or less payment can be expected at tax time.
Understanding if you may be required to pay estimates can be helpful in planning your income throughout the year. Setting aside money necessary for payment to the IRS will not only help to avoid the sticker shock of receiving a huge tax bill after filing but can also remedy other potential shortfalls as the tax implications of an individual change from year to year.
The accounting experts at Bloch, Rothman, and Associates will be pleased to assist you in filing a return or planning for future needs, including providing estimated payments. Our associates can help ensure that you not only receive the best refund possible but also are aware of the implications your type of earnings may have on a return. Further, they are willing and ready to assist in filing via the method most specific to your individual tax situation. Known for providing expert tax advice and assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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This estimated tax doesn’t apply to everyone but there are certain situations which will influence your tax status and potentially cause you to qualify for estimates. These taxes are paid in on income received that otherwise does not apply to the withholding elements of money received. Most common is self-employed income but other factors which can formulate an individual to become responsible for estimates include: business earnings, dividends, interest income or rent payments and a few other sources.
If within a single year you owe either $1,000 or more to the Federal Government then the Internal Revenue Service (IRS) expects you will pay estimated taxes on qualified income. These individuals are often subject to that requirement for estimated tax application.
• Self-Employed or Sole Proprietor. Both entities need to consider making estimated tax allotments, especially if their perceived income is expected to surpass $1,000 in tax liability over a given year. Even part-time individuals should be considering estimates as they are subject to the same expectations and requirements of their full-time counterparts.
• Partners and Corporations. Similar to individuals who function under one of the previously disclosed methods, both partnerships and corporations are influenced to make estimates based on their tax liabilities. For all types of corporations, payments are expected at half the rate of an individual, meaning $500 in liability should signal a need for the quarterly payment to get ahead.
• Prior Year Owed. Individuals or other entities which owed tax at the end of a previous cycle should investigate the reason for their withholding. Typically, not enough money was taken from a paycheck or profit and thus more should be kept in the coming year to offset the potential costs.
By investigating the cause for such an underpayment and making up the difference via an estimated tax payment in the current year, a potential refund or less payment can be expected at tax time.
Understanding if you may be required to pay estimates can be helpful in planning your income throughout the year. Setting aside money necessary for payment to the IRS will not only help to avoid the sticker shock of receiving a huge tax bill after filing but can also remedy other potential shortfalls as the tax implications of an individual change from year to year.
The accounting experts at Bloch, Rothman, and Associates will be pleased to assist you in filing a return or planning for future needs, including providing estimated payments. Our associates can help ensure that you not only receive the best refund possible but also are aware of the implications your type of earnings may have on a return. Further, they are willing and ready to assist in filing via the method most specific to your individual tax situation. Known for providing expert tax advice and assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
Denver Business Tax Preparation: Monthly vs. Semi-Weekly Depositor
August 2, 2018
When operating a business, there are a number of factors to consider and one of the most important is a handling of the finances. Whether you are operating a multi-million dollar company or opening a specialty boutique in a local town, ensuring the operating costs aren’t exceeding the income and making sure the entity is stable enough to sustain producing a profit are all critical factors. If not given appropriate consideration, each has the potential to sink any new opportunity quicker than almost anything else associated with the operations of an organization. However, once any money begins to be made there is another factor to consider which is due their share of the wealth - the Internal Revenue Service (IRS).
Operating as the nation’s tax collection agency and often in the interest of the federal government, the IRS has a litany of regulations and applications which can make a highly trained professional tax attorney second guess themselves, let alone a small town, small company business owner. For these reasons alone, seeking professional assistance with any monetarily related issues, especially those involving the IRS, is recommended.
One of the most prevalent factors to determine when starting the business is whether you will be required to contribute federal income tax withholdings and both employee and employer social security and Medicare taxes monthly or semi-weekly.
All new businesses are considered to be monthly depositors until it is determined they meet the requirements to move into a semi-weekly deposit schedule. Monthly deposits must be made by the 15th of the following month for the due period. For example, all submissions necessary for the month of July must be submitted to the IRS by August 15, August by September 15, September by October 15, continuing annually.
For those businesses which have reported in excess of $50,000 during their lookback period, a semi-weekly deposit is required. The employment tax due date is reflected based on when the entity determines that pay day is scheduled. Pay days of Wednesday, Thursday, and Friday are due prior the following Wednesday and all other days are due before Friday.
A special $100,000 next-day deposit rule applies should a business incur such a tax amount due and will push any new company immediately to a semi-weekly for the remainder of the year in which the special submission occurs.
If you need assistance in deciding which method of tax submission should be utilized for your business then the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you. Our associates can help ensure your tax requirements are met appropriately and in a timely manner. Known for also providing payroll assistance, they can help with a variety of accounting, bookkeeping and essentially any aspect on either the individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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Operating as the nation’s tax collection agency and often in the interest of the federal government, the IRS has a litany of regulations and applications which can make a highly trained professional tax attorney second guess themselves, let alone a small town, small company business owner. For these reasons alone, seeking professional assistance with any monetarily related issues, especially those involving the IRS, is recommended.
One of the most prevalent factors to determine when starting the business is whether you will be required to contribute federal income tax withholdings and both employee and employer social security and Medicare taxes monthly or semi-weekly.
Monthly Depositor
All new businesses are considered to be monthly depositors until it is determined they meet the requirements to move into a semi-weekly deposit schedule. Monthly deposits must be made by the 15th of the following month for the due period. For example, all submissions necessary for the month of July must be submitted to the IRS by August 15, August by September 15, September by October 15, continuing annually.
Semi-Weekly Depositor
For those businesses which have reported in excess of $50,000 during their lookback period, a semi-weekly deposit is required. The employment tax due date is reflected based on when the entity determines that pay day is scheduled. Pay days of Wednesday, Thursday, and Friday are due prior the following Wednesday and all other days are due before Friday.
A special $100,000 next-day deposit rule applies should a business incur such a tax amount due and will push any new company immediately to a semi-weekly for the remainder of the year in which the special submission occurs.
If you need assistance in deciding which method of tax submission should be utilized for your business then the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you. Our associates can help ensure your tax requirements are met appropriately and in a timely manner. Known for also providing payroll assistance, they can help with a variety of accounting, bookkeeping and essentially any aspect on either the individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.