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

By diamondcpas Business Taxes, Personal Taxes 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 personal and business tax issues.  You should always keep your personal and business finances separate.  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.  You want a firm that can handle maximizing business deductions and integrating those figures with your personal income.
  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 lose your job, your former employer could hire you back as a consultant. This will have immediate tax consequences.  
  3. A great example of personal and business crossover is when you have to move but your home does not sell.  If you choose to rent your home, that rent may be taxable income. A variety of rental deductions would then be available to you.  
  4. Partnerships for lawyers, doctors, and certain consultancies have significant tax implications for the business as well as the individuals and their families.  Our staff can walk you through the tax issues of the partnership while ensuring that we capture their effect and possible benefits for your personal taxes as well.  
  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.  Sometimes this is the only way the loan can be secured for the business.  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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