Latest News on Denver Accounting & Taxes

Did you know that certain life changing events in your life may affect your taxes and how you will need to handle your accounting in Denver? By working with a local accountant to help you with your taxes, they will help walk you through the specifics on all life changes. However, it is always best to be aware of the various areas so you know to expect changes when tax season comes around. From getting married and purchasing a new home, to a new baby or retirement, these are a few of the top major changes that will impact your taxes.

Getting Married

Upon getting married, your filing status for your taxes will change. More specifically, you will change from filing as single to either married filing jointly or married filing separately. In the IRS’ explanation on how getting married affects your taxes, when filing together, you will combine your income and deductions. The two of you are both responsible for the items you report on the taxes. For filing separately, it is a good conversation to have with your premier tax specialist to see if you fall in a category where this would benefit you. It’s primarily used if one spouse has a negative history with taxes to keep everything separate. While there are some instances that could save you money, in most cases, you both will pay more.

Purchasing a Home

When you buy a new home, you will be excited to learn that there a few benefits that come with this new life change. How? You are able to make a few additional deductions. For starters, you are able to deduct the interest that is charged from your mortgage. Next, you are also able to deduct your area’s property taxes that you have paid. In addition, if you make energy efficient additions to the home, discuss with your accountant how you could potentially take advantage of the energy tax credit that can be up to $500.

A New Baby

After you welcome a new child to your family, you will be able to claim dependents on your taxes. As a parent, you will be able to take advantage of the Child Tax Credit. In most cases, this will lead to $1,000 in savings. In addition, depending on your income and filing status, you may qualify for the Earned Income Tax Credit. As your child or children grow, you can also claim their medical expenses if they are over 10 percent of your adjusted gross income. There are also childcare tax breaks if you send your child to a daycare that you can discuss with your accountant.

When it comes to handling your life changes for your taxes, you need a quality, go-to specialist that you can trust. You can rest assured that with Bloch, Rothman and Associates, we’ll help you every step of the way to maximize your return. In addition to these tips, be sure to read tax tips for retirees from an accountant in Denver. Whenever you have a life event that may change your taxes, be sure to call us at 303-321-7160.

When you think of a vacation home, you think of the many benefits it will bring such as quality time with friends and family to having a place to get away from it all. But did you know this investment could also be a tax write-off? These deductions and write-offs that you can take advantage of as a property owner on a second property. Interested in learning more? Learn the basics about go-to tax write-offs when it comes to real estate, a deeper look into the top benefits of owning a vacation home and some of the ins and outs of vacation homes and Denver taxes.

Basics of Tax Write-Offs

Did you know that you could be saving hundreds or even thousands on your taxes each year through write-offs? This is something your local accountant can assist with. They can help look into the purchases you made and help you take advantage of these write-offs when it comes to tax season. So what are tax write-offs, exactly? These are expenses that per the Internal Revenue System (IRS), can be deducted from your taxable income. This can apply to both your personal and business tax returns. There are a wide variety of areas one can take advantage of with tax write-offs. Some of the several types of tax deductions listed by the IRS include charitable contributions, student loan interest, expenses for your employer, job-related moving expenses and contributions to retirement accounts.

Inside Look of Vacation Home Benefits

For those who enjoy traveling, have a family or are looking for a “place to get away,” a vacation home is a great investment. Many families purchase a vacation home to create a place to spend quality time with children as they grow up. Others enjoy having a place that families can share or come together on vacations. For others, a vacation home is a great place to get away. Some use it as a place to work, while others use it as a place to disconnect. Certain parts of owning a vacation home can also be lucrative. Many will rent out their property during the times of year where they will not be staying in it, creating a great source of additional income.

Check out Airbnb to learn more about renting out your vacation home.

Ins and Outs of Vacation Homes and Taxes

If you do not plan on using your vacation home as a property rental, you will be able to deduct your mortgage on the home the same way you can for your primary residence. For some, the benefits of renting out the property when they do not plan on staying there is a better choice to bring in additional income. In fact, more than two weeks is the time period which you must report if you are renting out the property. You can also discuss with your accountant some of the best ways to be able to deduct any losses from the rental as well. If you choose to rent out the property, you will need to report that as income.

If you are considering a vacation home, learn more about reigning in your money and monthly budgeting tips from your Denver accountant. To discuss how you can financially benefit from a vacation home, Bloch, Rothman and Associates can help. Contact Bloch, Rothman and Associates today to see how we can help show you the premier advantages!

Having a structured bookkeeping and filing system should be one of your top priorities for your local business.

Why?

By keeping an organized system for records, you will easily be able to find information and prepare your taxes each year with ease.

Learn more tips below for getting your accounting in Denver started and managing taxes to reasons to get professional bookkeeping tip, you can use these tips to help your business grow.

1. Getting Started for New Businesses

Keeping an organized system for all money coming in and out of your business is crucial for its growth and success.

One of the most important things you or your team can do to stay on top of expenses is to review them each month.

Because, this will help you to see both charges large and small.

Also, it is important to... monitor your invoices if you send them to your customers. It is best to monitor them regularly and follow up with customers that are behind on their payments. While you are watching the cash flow in and out of your business, it is important to take this information and make financial business plans for your future.

Consider this - the growing needs of your business, whether for supplies and software to employees needs or travel and training. Keep all of this in an organized fashion easily accessible.

2. Managing Taxes

It is best to make taxes a priority for your business. You need to be putting your business’ tax funds aside to pay for your quarterly payroll tax deadlines.

As a business owner, you are responsible for local, state and federal taxes. If you are new to owning a new business or are not as familiar with the tax side of your business...that’s okay!

This is why you can use a premier tax and bookkeeping service to handle the tax side for you. Also, as a business owner, you can take advantage of tax breaks on your personal taxes when you have a small business. According to Investopedia’s Payroll Deductions Pay Off, you can take advantage of more for your 401K, increased savings in your flexible saving account and parking.

3. Reasons to Get Professional Bookkeeping Help

When it comes to managing your business' bookkeeping, accounting and taxes, there is much to know.

This is why it is important to utilize the help of a tax expert. They can work with you to provide the daily, weekly and monthly snapshots you need to know exactly what your business is bringing in and taking out.

As tax specialists, they will also be able to teach you more about tax laws and what you can do to set aside enough money to meet your quarterly payments.

For help finding an expert with your Denver accounting and tax services, Bloch, Rothman and Associates has you covered. We have a wide variety of expertise and you will love the quality of service you will receive. From full payroll processing and payroll taxes to filing your taxes and all other areas, we will help your business be successful. Contact Bloch, Rothman and Associates today to get started.

When it comes to dealing with taxes, there are many things along the way that can come up. This is especially true for the self-employed or contractors, but there can be follow-ups by the Internal Revenue Service (IRS) for anyone. Whenever there is a dispute on taxes for any reason, the IRS will want to investigate further. This is known as tax litigation. Learn more about what tax litigation is, reasons to get help from a Denver tax specialist and other common outcomes that happen:
 

What is Tax Litigation?

 
Whenever there is a dispute or discrepancy on taxes that is taken to court, whether it be for a person or business, this is what is known as tax litigation. It begins with an audit by the IRS of an individual or business.

Once this occurs, additional documents and attention will be brought to a certain tax case. Tax litigation can occur both on a state or federal level. The IRS will want to take a fine comb over all your finances to look for various things such as gift taxes.
 

Reasons to Get Representation

 
When it comes to making sure your tax litigation case is resolved correctly and quickly, it is best to work with a tax specialist. They have all the go-to information to review your case and help you prepare everything you need when working with the IRS. They are your advocate that will help you along the way.

A tax specialist will also help you create a case if you are unable to pay an amount the IRS is requiring, settling unpaid debts and more. For many, they believe everything the IRS says and does is the final solution. This is not always the case. This is way it is crucial to have a premier tax specialist on your side to walk you through the tax litigation process.
 

Common Outcomes

 
During tax litigation, there are four things that can happen. The first? Nothing. Your case will be reviewed and filed away.

Another outcome that can occur is when you and the IRS come to an agreement on payment terms.

Third, you and the IRS may come to a partial agreement where you will pay certain expenses. Last, you might completely agree with the IRS findings and pay a certain amount. To help make sure your case is fair, make sure you have a local tax specialist working with you on your tax litigation case.
 
Have you been contacted by the IRS? Are you trying to decipher how to handle a tax litigation case or IRS audit? Bloch, Rothman and Associates is here to help. When it comes to any of your tax litigation needs, from audits and appeals to collections or forensic accounting, we are your top tax agency. Our quality service will help you every step of the way to make the process as seamless as possible. If you have been contacted by the IRS, it is also important to know your taxpayer bill of rights explained by your Denver tax specialist. To get started, contact us at 303-321-7160.

Today, over 70 percent of Americans shop online. Often, purchases being made are outside of a person’s state. If you are included in the 70 percent, then you may be subject to consumer use tax. This is a type of tax different than sales taxes that a consumer is responsible for. It is also different than retail use tax. Learn more about use taxes, top differences from sales tax, and more about paying use taxes and using a go-to accountant that provides quality services to help you navigate through the process.

Use Tax

In some circumstances in a sale of goods or services, the person selling those goods or services does not charge sales tax. In these instances, this is where the consumer purchasing the goods or services is responsible for paying the taxes, also known as “use tax.” This commonly happens when transactions are made outside of the state, which is why it is common for online purchases. When a purchase is made and a buyer was not charged sales tax for the purchase, the buyer must report their purchase and fill out proper paperwork. Use tax, explained by Investopedia, notes that buyers who do not pay their use tax on purchases might be subject to paying interest or penalties.

Differences from Sales Tax

Sales tax is when tax is paid upon making a transaction. Many states across the country charge sales tax on the products and services they sell. For some states, it is a statewide tax but is not always the case. With sales tax, a seller of goods and services is responsible for handling all paperwork to make sure sales tax is paid for goods and services.

Paying Use Taxes and Using an Accountant

So, to recap paying use tax, if purchase a product and you are not charged the sales tax, you will owe the state you purchased it from sales tax. Use tax can get complicated and confusing. That is why it is best to work with a local accountant. They will work with you to help you file the proper tax return to the state you owe the use taxes in. For Colorado, the use tax is the same as the state’s sale tax rate. For consumers, the use tax is due annually when you file your tax return. It is helpful for you to save all records of items you had not paid taxes on throughout the year to work with your accountant on. From there, they can help you with the right forms you will need to include in your returns.
 
For help paying your use tax in Denver, the premier office of Bloch, Rothman and Associates has you covered. They will help you understand what you owe and will also assist you with filing taxes in Denver with multiple documents. In addition, we help with personal tax preparation, IRS audits, IRS collections and so much more. Let us help! Contact Bloch, Rothman and Associates today to set up your free initial consultation to review your tax situation.