Factor In These Energy Efficient Tax Credits on Your Denver Tax Return
October 19, 2016
When you prepare your Denver tax return, it’s important to work with a professional who can help you locate any tax credits that may apply to you. However, if you choose to prepare your return on your own, you need to be familiar with the various tax credits available to homeowners. For example, did you know you may qualify for credits if your home has energy efficient features? It’s true! Here are the three energy efficient credits you should know about:
Do you need help finding applicable tax credits? Bloch, Rothman & Associates, Ltd. is a full service accounting firm offering personal and affordable Denver tax and accounting services for individuals and businesses. Contact Block, Rothman & Associates in Denver for a free initial consultation.
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Non-Business Energy Property Credit
Have you made any energy efficient upgrades in your Denver home over the last twelve months? If so, you may qualify for the non-business energy property credit. Homeowners can claim up to 10% of the cost of certain energy efficient upgrades including insulation, and energy efficient windows, roofs, and doors. In some circumstances, such as when you install a new, energy efficient water heater, you may be able to recoup the entire cost of the appliance. But, keep in mind there is a maximum limit of $500 on this credit, so don’t expect to claim higher than this amount. You should also be careful when deciding which appliances and energy efficient products to buy for your home. Not every product will count towards this credit, so be sure to do your research to make sure you are choosing one that will save you money. Learn more about how you can get credit for making your home energy efficient.Residential Energy Efficient Property Credit
This credit was designed to encourage homeowners to use alternative energy sources, such as solar or wind power. If you have installed any equipment in your home such as a solar water heater or solar panels on your roof, you may qualify to receive up to 30% of the cost with the help of this credit. Unlike the previously mentioned tax credit, there is no limit on this one, so even if your credit comes out to more than you actually owe for your annual taxes, the balance will carry over to the next year.Energy Efficient New Homes For Home Builders
Although this one won’t apply to as many people as the first two, it is still worth mentioning in this round-up of energy efficient tax credits. Home builders will qualify for a tax credit of up to $2,000 if the homes they are building meet certain standards. First, the homes must comply with Federal Manufactured Home Construction and Safety Standards. The homes also must meet certain energy saving requirements, meaning they have to be designed to reduce energy consumption. If the homes can reduce heating and cooling energy consumption by at least 50%, then the home builder qualifies for up to $2,000. However, if the home is built to only reduce heating and cooling costs by 30%, then the home builder may qualify for a credit of up to $1,000.Do you need help finding applicable tax credits? Bloch, Rothman & Associates, Ltd. is a full service accounting firm offering personal and affordable Denver tax and accounting services for individuals and businesses. Contact Block, Rothman & Associates in Denver for a free initial consultation.
Should You File Your Own Personal Taxes or Use a Professional Accountant?
October 5, 2016
Every year, some Americans prepare their own taxes using software applications without identifying and learning about the changes in specific IRS rules and guidelines. As the deadline to file taxes draw closer each year, many of these people try desperate measures to meet the deadline, sometimes not making the best decision of hiring an accountant instead of self preparation.
Common Pitfalls
There are several convenient and efficient options that an informed consumer needs to consider as it relates to the advantages and disadvantages of electronic filing. For many Americans, they think first about the cost of using a CPA or other tax professional because in some cases the tax preparation cost is more than the tax refund amount. However, this doesn’t happen often. If you decide to file your own taxes, you need to be aware of the common pitfalls.
The Advantages
There are benefits of filing your own tax return. The most evident benefit is saving money by not having to pay a tax professional. In addition, it helps you to get acquainted with your personal finances, forcing you to look at the money that you spent for the year in comparison to what you earn. In some cases, it can aid you in adopting wise budgetary practices. However, filing your own taxes does have some limitations. Yes, you may be able to categorize a simple lawn care service, but when it comes to categorizing open heart surgery, you may have to leave this to the professional. If you have an adjusted income of less than $57,000 annually and you have only one income stream, the IRS has low cost options that you can use. On the other hand, if you operate a business, you need all the deductions that you qualify for. In that case, you will benefit more to hire a professional tax preparer.
Assessing the Detail
A Denver accountant can help you to assess details of your return and get you the most deductions. Filing taxes on your own without knowledge of the tax code laws can be quite time consuming and challenging. In the end, the cost to hire a tax professional will be worth it. For example, if you were to pay a Denver tax specialist $500 to prepare a return and you are able to get a $2,000 tax refund, you would fare better than doing it yourself and only getting a back refund of $1,000.
Modest Wages
Even if you are a student or someone who works on a part time basis with modest wages, you would be surprised to know the extent to which a Denver tax professional can help you. There is always a chance that you will get a reasonable tax refund.
The Dreaded Audit
One thing that many people do not consider when filing their taxes is the IRS audit. If you are flagged by the IRs for high deductions, then you could get audited by the IRS. When this takes place, it can be quite challenging to find the related documents to build a persuasive case. However, if your taxes were filed by a Denver accountant, you will get the help you need for an audit-proof tax return.
Bloch and Rothman can help you with your personal tax preparation. Let a financial professional with years of experience provide the tax help you need each year. Call us at 303-321-7160 to set up a confidential consultation where we will discuss your options.
Read More...
Common Pitfalls
There are several convenient and efficient options that an informed consumer needs to consider as it relates to the advantages and disadvantages of electronic filing. For many Americans, they think first about the cost of using a CPA or other tax professional because in some cases the tax preparation cost is more than the tax refund amount. However, this doesn’t happen often. If you decide to file your own taxes, you need to be aware of the common pitfalls.
The Advantages
There are benefits of filing your own tax return. The most evident benefit is saving money by not having to pay a tax professional. In addition, it helps you to get acquainted with your personal finances, forcing you to look at the money that you spent for the year in comparison to what you earn. In some cases, it can aid you in adopting wise budgetary practices. However, filing your own taxes does have some limitations. Yes, you may be able to categorize a simple lawn care service, but when it comes to categorizing open heart surgery, you may have to leave this to the professional. If you have an adjusted income of less than $57,000 annually and you have only one income stream, the IRS has low cost options that you can use. On the other hand, if you operate a business, you need all the deductions that you qualify for. In that case, you will benefit more to hire a professional tax preparer.
Assessing the Detail
A Denver accountant can help you to assess details of your return and get you the most deductions. Filing taxes on your own without knowledge of the tax code laws can be quite time consuming and challenging. In the end, the cost to hire a tax professional will be worth it. For example, if you were to pay a Denver tax specialist $500 to prepare a return and you are able to get a $2,000 tax refund, you would fare better than doing it yourself and only getting a back refund of $1,000.
Modest Wages
Even if you are a student or someone who works on a part time basis with modest wages, you would be surprised to know the extent to which a Denver tax professional can help you. There is always a chance that you will get a reasonable tax refund.
The Dreaded Audit
One thing that many people do not consider when filing their taxes is the IRS audit. If you are flagged by the IRs for high deductions, then you could get audited by the IRS. When this takes place, it can be quite challenging to find the related documents to build a persuasive case. However, if your taxes were filed by a Denver accountant, you will get the help you need for an audit-proof tax return.
Bloch and Rothman can help you with your personal tax preparation. Let a financial professional with years of experience provide the tax help you need each year. Call us at 303-321-7160 to set up a confidential consultation where we will discuss your options.
Why Your Small Business Needs a Denver Accountant
If you are a small business owner, it is possible that you may have made the assumption that the IRS doesn’t care about your tax liability. This is the wrong assumption to make. Many reports indicate that the IRS is in fact careful to audit small business owners in recent years. Of course, the government may not have an interest in your small business before you make a profit, but once you start enjoying a profit, you are fair game.
The Early Stages
For that reason, it is important to pay close attention to your tax obligations during the early formation stages of your business. Why? You want to get as many deductions as you are entitled to and you also want to avoid any liability issues that may result from taking unauthorized or unfamiliar deductions. There are several things that you should be aware of as it relates to your federal income taxes. Let’s take a closer look:
Legal Entity and Tax Burden
Not every small business has a similar tax burden. As a matter of fact, the legal entity that you have selected when forming your business has a huge impact on your tax liability. Therefore, you should think carefully about how you are going to legally structure your business. Seek the help of one of our friendly accountants in Denver if you are not sure. There are several small business structures to consider:
The Expenses
Most of your business expenses are legally deductible and most of your profit is taxable. You are given legal options as to when and to the extent in which you are able to claim specific deductions. You can claim an allowance for depreciation after purchasing equipment for your business, however, you may be eligible to deduct the entire equipment cost in the first year of purchase when it was used for service. If you used your personal vehicle for business, you may be qualified to deduct the actual cost or use the standard mileage rate. In order to do so, you have to maintain good written records of usage.
Startup Expenses
Many new business owners mistakenly think that their startup expenses are not deductible, but they are! There are a wide range of startup expenses that you can deduct, even before you start receiving customers. Don’t try to figure this out on your own. A reputable Denver accountant will be able to assist you. Some of these startup costs include:
Yes, the IRS requires that all business owners pay their self-employment tax. You can ease your tax burden by deducting the employer-equivalent element of your self-employment tax. You can also claim fifty percent of the claim you make for your self-employment tax as income tax deduction.
If you want to make sure that your business taxes are in good IRS standing, you should consider getting professional help from an accountant or tax advisor. We can help guide you to fully maximize your deductions. Bloch, Rothman and Associates offers Denver tax return services for small businesses. Contact us at 303-321-7160 for a free tax consultation!
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The Early Stages
For that reason, it is important to pay close attention to your tax obligations during the early formation stages of your business. Why? You want to get as many deductions as you are entitled to and you also want to avoid any liability issues that may result from taking unauthorized or unfamiliar deductions. There are several things that you should be aware of as it relates to your federal income taxes. Let’s take a closer look:
Legal Entity and Tax Burden
Not every small business has a similar tax burden. As a matter of fact, the legal entity that you have selected when forming your business has a huge impact on your tax liability. Therefore, you should think carefully about how you are going to legally structure your business. Seek the help of one of our friendly accountants in Denver if you are not sure. There are several small business structures to consider:
- Sole Proprietorship
- Limited Liability Corporation
- S Corporation
- Partnership
The Expenses
Most of your business expenses are legally deductible and most of your profit is taxable. You are given legal options as to when and to the extent in which you are able to claim specific deductions. You can claim an allowance for depreciation after purchasing equipment for your business, however, you may be eligible to deduct the entire equipment cost in the first year of purchase when it was used for service. If you used your personal vehicle for business, you may be qualified to deduct the actual cost or use the standard mileage rate. In order to do so, you have to maintain good written records of usage.
Startup Expenses
Many new business owners mistakenly think that their startup expenses are not deductible, but they are! There are a wide range of startup expenses that you can deduct, even before you start receiving customers. Don’t try to figure this out on your own. A reputable Denver accountant will be able to assist you. Some of these startup costs include:
- Business licensing
- Fees for incorporation
- Buying goods
- Attending seminars and trade shows
- Training staff
- Conducting market research
- Product analysis
Yes, the IRS requires that all business owners pay their self-employment tax. You can ease your tax burden by deducting the employer-equivalent element of your self-employment tax. You can also claim fifty percent of the claim you make for your self-employment tax as income tax deduction.
If you want to make sure that your business taxes are in good IRS standing, you should consider getting professional help from an accountant or tax advisor. We can help guide you to fully maximize your deductions. Bloch, Rothman and Associates offers Denver tax return services for small businesses. Contact us at 303-321-7160 for a free tax consultation!
Is Your Small Business in Denver Financially Healthy?
September 21, 2016
It is rather easy to determine when your small business is doing well and when it is not. When you are operating from behind, you will know. When you are able to make your weekly employee payroll and easily take care of your monthly expenses, it puts a positive light on your financial state. However, are there perceptible levels or discernible distinctions to consistently suggest whether your small business is financially healthy or not? Or are there definitive ways to establish how well your business is doing away from the norm?
The Signs
There are several ways to do just that, some of which might be fitting to your business than others. When you think about this, you need to also consider the signs to look for that will indicate if your business is in good financial health or the opposite. Let’s take a look.
Growing Revenue
When you think about profit and loss statement in any small business, it is important to see a steady revenue increase each month and each year. You don’t need a huge profitability spike, but it should be a stable increase that exemplifies upward movement and a strong outlook financially.
Flat Expenses
In combination with the revenue increase, you also should have expenses remain flat. Your expenses may increase if you see a significant growth surge in your small business. However, generally, the expense increase should remain in line with the revenue increase. Let’s say you notice a revenue increase of three percent each year, your expenses should not increase more than three percent during the same period.
Cash Balance
Even though, your revenue may be increasing, if you invest that money back into your business, you may become cash poor and asset wealthy, which is not a balance to your financial health. A low cash balance or a stagnant cash balance may mean that your business is unsustainable. So, to combat this problem, keep a specific amount of cash in your local bank for business emergencies. This will prevent you from incurring more business debt from unexpected expenses.
Low Debt Ratios
Pay special attention to two of the most significant debt ratios, namely debt-to-equity and debt-to-asset. These are your solvency ratios as a Denver accountant may explain. These formulas or calculations are specific to measuring the amount of money your business owes in comparison to how much the business is actually worth. It is best to keep this number as low as possible. It will be more ideal to maintain good financial health for your business.
Profitability Ratio
When it comes to profitability ratio, you should use one that measures your sales returns and your investment returns. One of the ideal ratios for measuring profitability is your profit margin. This entails a calculation that divides the annual sales into the yearly net profits. Even when making sales, you must ensure that your profit margin remains low. It will depend on a lot of factors such as startup costs and pricing structure. When your profitability ratio is high, you can tell that your business is financially healthy.
To simplify the process of measuring your business’s financial health, review the profit and loss statement and analyze various components of the business. In the end, it will be up to you to decide the importance of your financial health. Don’t wait until it gets bad. Contact the Bloch, Rothman, and Associates, an accounting firm in Denver with the experience and knowledge of determining the real financial health of your company. Call 303-321-7160 to schedule a free consultation.
Read More...
The Signs
There are several ways to do just that, some of which might be fitting to your business than others. When you think about this, you need to also consider the signs to look for that will indicate if your business is in good financial health or the opposite. Let’s take a look.
Growing Revenue
When you think about profit and loss statement in any small business, it is important to see a steady revenue increase each month and each year. You don’t need a huge profitability spike, but it should be a stable increase that exemplifies upward movement and a strong outlook financially.
Flat Expenses
In combination with the revenue increase, you also should have expenses remain flat. Your expenses may increase if you see a significant growth surge in your small business. However, generally, the expense increase should remain in line with the revenue increase. Let’s say you notice a revenue increase of three percent each year, your expenses should not increase more than three percent during the same period.
Cash Balance
Even though, your revenue may be increasing, if you invest that money back into your business, you may become cash poor and asset wealthy, which is not a balance to your financial health. A low cash balance or a stagnant cash balance may mean that your business is unsustainable. So, to combat this problem, keep a specific amount of cash in your local bank for business emergencies. This will prevent you from incurring more business debt from unexpected expenses.
Low Debt Ratios
Pay special attention to two of the most significant debt ratios, namely debt-to-equity and debt-to-asset. These are your solvency ratios as a Denver accountant may explain. These formulas or calculations are specific to measuring the amount of money your business owes in comparison to how much the business is actually worth. It is best to keep this number as low as possible. It will be more ideal to maintain good financial health for your business.
Profitability Ratio
When it comes to profitability ratio, you should use one that measures your sales returns and your investment returns. One of the ideal ratios for measuring profitability is your profit margin. This entails a calculation that divides the annual sales into the yearly net profits. Even when making sales, you must ensure that your profit margin remains low. It will depend on a lot of factors such as startup costs and pricing structure. When your profitability ratio is high, you can tell that your business is financially healthy.
To simplify the process of measuring your business’s financial health, review the profit and loss statement and analyze various components of the business. In the end, it will be up to you to decide the importance of your financial health. Don’t wait until it gets bad. Contact the Bloch, Rothman, and Associates, an accounting firm in Denver with the experience and knowledge of determining the real financial health of your company. Call 303-321-7160 to schedule a free consultation.
Seven Reasons for Hiring an Accountant to do your Bookkeeping
September 7, 2016
When you think about bookkeeping, you could compare it equally with a regular dentist visit. However, there are many people who neglect both, which can result in serious consequences. For the most part, business owners will consider hiring someone to do their bookkeeping so as not to have to deal with it until tax time comes around. There are several advantages to hiring a bookkeeper and we will now take a closer look at them.
Time Management
Many companies find that when bookkeeping operations are outsourced, it allows for a more efficient business. More business owners are choosing this option for the reasons discussed below. For one, the business owner gets more time to do other operational tasks. Functions in the backend office can result in heavy distractions each day. With in-house bookkeeping, there can be a conflict of interest in handling these distractions.
Saving Money
Use a Denver accountant to handle your bookkeeping and you will have the potential of saving money. Since you don’t have to hire in-house employees, you don’t have to pay full-time salaries or benefits. You can also save money on lost productivity. You pay the accountant only for the services needed.
The Expertise
A Denver bookkeeping specialist has the expertise, experience, and knowledge to get the job done. The bookkeeping expert will have an understanding of best practices in your industry and will know how to staff specific projects. Placing your bookkeeping into the hands of a highly qualified professional will only make your job easier and simpler.
Staying Focused
By getting rid of all the heavy distractions in the office, your employees will be more focused on their assigned tasks. Bookkeeping is a focused project, one that can result in a lot of errors, if there are too many distractions. This is especially true, if your in-house bookkeeper has other duties. Â Upon outsourcing your bookkeeping, you will also free up more time for your employees to focus on other aspects of the business.
Team at Work
Most accounting firms that offer bookkeeping service will tackle this task as a team. For that reason, there will be a number of individuals working on this at one time or the other. Your financial records will then go through a number of hands to ensure that mistakes are limited. When just one in-house staff is tackling such an intense and meticulous task, it leaves room for more mistakes because there are no checks and balances done by other staff members.
Industry Tools and Resources
In an accounting firm, you can expect that the staff will utilize all the necessary industry tools and resources in handling your bookkeeping. This is something you may have not been able to afford. Many programs used for bookkeeping are expensive and if you are a new business owner, this can put a big dent into your operating budget.
Known as a Denver accounting firm with years of bookkeeping experience, Bloch, Rothman, and Associates may be the immediate option for you. If you are ready to outsource this service, contact the firm at 303-321-7160.
Read More...
Time Management
Many companies find that when bookkeeping operations are outsourced, it allows for a more efficient business. More business owners are choosing this option for the reasons discussed below. For one, the business owner gets more time to do other operational tasks. Functions in the backend office can result in heavy distractions each day. With in-house bookkeeping, there can be a conflict of interest in handling these distractions.
Saving Money
Use a Denver accountant to handle your bookkeeping and you will have the potential of saving money. Since you don’t have to hire in-house employees, you don’t have to pay full-time salaries or benefits. You can also save money on lost productivity. You pay the accountant only for the services needed.
The Expertise
A Denver bookkeeping specialist has the expertise, experience, and knowledge to get the job done. The bookkeeping expert will have an understanding of best practices in your industry and will know how to staff specific projects. Placing your bookkeeping into the hands of a highly qualified professional will only make your job easier and simpler.
Staying Focused
By getting rid of all the heavy distractions in the office, your employees will be more focused on their assigned tasks. Bookkeeping is a focused project, one that can result in a lot of errors, if there are too many distractions. This is especially true, if your in-house bookkeeper has other duties. Â Upon outsourcing your bookkeeping, you will also free up more time for your employees to focus on other aspects of the business.
Team at Work
Most accounting firms that offer bookkeeping service will tackle this task as a team. For that reason, there will be a number of individuals working on this at one time or the other. Your financial records will then go through a number of hands to ensure that mistakes are limited. When just one in-house staff is tackling such an intense and meticulous task, it leaves room for more mistakes because there are no checks and balances done by other staff members.
Industry Tools and Resources
In an accounting firm, you can expect that the staff will utilize all the necessary industry tools and resources in handling your bookkeeping. This is something you may have not been able to afford. Many programs used for bookkeeping are expensive and if you are a new business owner, this can put a big dent into your operating budget.
Known as a Denver accounting firm with years of bookkeeping experience, Bloch, Rothman, and Associates may be the immediate option for you. If you are ready to outsource this service, contact the firm at 303-321-7160.