Why You Want An Accountant Who Handles Personal and Business Tax Issues

By diamondcpas General Comments Off on Why You Want An Accountant Who Handles Personal and Business Tax Issues

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.

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