If a taxpayer has counted on the Internal Revenue Service for past help, they may want to make other arrangements, as call volumes are expected to be high this tax season. Tax prep software is becoming simpler and better to use, and for most people with simple returns, it provides a viable solution. However, when a taxpayer needs specific advice, knowing when to call a Redlands tax prep expert can help them save money and time. Below are a few times when clients should reach out for professional tax help.
Owning a Business or Being a Business Partner in More Than One State
Here, the Washington, DC area is used as an example. It presents taxpayers with numerous challenges because of the proximity of Virginia and Maryland, and it’s common to find business partners and owners who live in one area and work in another. For clients such as lawyers and doctors who practice in more than one state, it is best to hire a tax preparation expert. If a business owner lives in a state and owns a business in a different state, the owner receives credit for taxes paid to the state in which the business is owned.
Getting a Divorce
There are numerous advantages to getting tax advice before a divorce is finalized. A tax expert can advise a client on matters of spousal and child support, selling a marital home, and division of assets and investments. Spousal support is a tax deduction for the paying spouse, and it is taxable for the receiver because it is regarded as income. Issues arising during a divorce can be complicated, and it is best to have a tax pro look at them before making a decision.
Owning Rental Property
If a person owns a home or condo that they rent out, they should consult an accountant or tax pro about possible deductions. Low interest rates and rising property values have created significant refinance opportunities for rental owners, and the way the owner uses equity from a refinance will determine the deductions they receive.
While most taxpayers’ situations are relatively simple, some situations present unique challenges. By hiring a licensed, experienced tax preparer and/or an accountant, a taxpayer can get through tax season without paying more than they owe.