Why You Want An Accountant Who Handles Personal and Business Tax Issues
diamondcpas
July 30, 2017

If you are starting a business or growing an existing enterprise you may feel like you need an accountant who specializes in business taxes.  Likewise, if you are a couple, individual or family you may be searching for a Newtown accounting firm to work just with your individual circumstances.

The truth is, you want an accounting firm where there is expertise in both areas.   You should  always keep your personal and business finances separated.  But, when it comes to preparing your taxes it is critical to work with an accountant who knows both sides.

  1. In many cases, small business taxes flow through to the owner’s personal tax return.  So, you want a firm that can handle maximizing business deductions and integrating those figures with your personal income and expenses.
  2. At any time you may find yourself with unexpected business income.  In today’s world of modern technology and employment, anyone with a laptop can start a business.  If you are let go from work, your former employer could hire you back as a consultant, which will have immediate tax consequences.
  3. Are you unable to sell your personal residence?  Maybe you need to rent it out for a year of two.  This is a great example of personal and business crossover.  Although the income from the rental is taxable, you are entitled to claim a variety of deductions attributable to the property.
  4. Partnerships and s-corporations are pass-through entities that filed business tax returns, however, the income is reportable on the owner’s personal tax returns.  This can be complicated process. Our staff can walk you through the entire process of capturing the business income properly and reporting it on your personal returns.
  5. Many times a small business owner will take out a personal loan to start a business.  For instance, a HELOC can be used for this purpose.  This is a very common way for a  small business owner to acquire the funds needed to keep their business going.  If the business makes the payments on your personal loan, will that be a business deduction?  How do you account for the deduction of the interest?

We have built our accounting practice here in Newtown, PA to ensure that at the partner, associate and staff level we have the expertise to cover all of your personal and business accounting needs.

0 Comments

Recent Posts

How to Review Your Q2 Numbers

How to Review Your Q2 Numbers

Reviewing your Q2 numbers is not just about crunching the numbers; it’s about understanding what those numbers mean for your business’s health and future growth. This process is crucial for identifying trends, making informed decisions, and ensuring your business stays on track to meet its annual goals.

Social Security & Your Taxes

Social Security & Your Taxes

Understanding the intricacies of Social Security and taxes is essential for financial planning at any stage of life. By taking a proactive approach and seeking professional advice, you can maximize your benefits and minimize your tax burden, ensuring a more secure financial future for yourself and your family.

Payroll Taxes 101

Payroll Taxes 101

As a small business owner, understanding payroll taxes is crucial to maintaining compliance and ensuring your business runs smoothly. Payroll taxes can be complex, but with the right knowledge and tools, you can manage them effectively. This guide will walk you...

QUESTIONS?

Reach out for a consultation.