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Five Tax Tips for Easier Tax Preparation in Tulsa

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For many small business owners, tax time is a headache. But it does not have to be this way if you have a tax pro to rely on. There are various tools and resources to make it easier to do your taxes and prepare your returns. A Tulsa business tax preparation service is available to ease the tax-related burden you carry every year. You have to find the best professional for the job. To make tax preparation easier, below are some tips you should consider:

Automate Bookkeeping

Automated bookkeeping allows for efficiency and accuracy in your taxes. Gone were the days when manual entry was the only option. Doing the books manually is time-consuming and tedious. However automated systems can import transactions from sources such as credit cards and bank accounts. These systems let you hold financial records in one place and keep them up-to-date. In turn, you can better maximize your tax refunds and avoid penalties related to incorrect or incomplete returns. 

Separate Business Bank Accounts from Personal Accounts

Making separate bank accounts for your business can help you claim deductions on your return and support such claims when an audit arises. By separating business and personal accounts, you can keep a clear picture of your organization’s financial health and cash flow. Also, you get extra protection when a lawsuit is filed against your business. If you have to take out loans to purchase supplies or inventory, lenders can concentrate on your business because income and expenses are not commingled. 

Consider All Business Expenses

A lot of small business owners do not report all of their expenses. However, detailed receipt management is necessary to maximize deductions. Any tax deduction you can secure gives you money that can be used for your business. To make the most out of tax deductions, use a program that captures receipts, keeps track of travel mileage, and produces overviews of expenses. By monitoring expenses, you get a picture of your cash flow and identify areas to save on costs Also, this allows you to ensure compliance with tax laws, requirements, and regulations. 

Understand Qualifying Tax Deductions

Usually, new business owners are not aware of tax deductions that their small business is entitled to. No matter the structure of your business, you may qualify for different deductions such as the following:

  • Startup and organization costs. Typically, capital expense deductions happen over several years. It is called amortization, which helps your business evaluate profitability accurately. 
  • Inventory. If your company manufactures products or buys goods for resale, the inventory costs or the cost of the merchandise to sell can be deducted. 
  • Utilities. Business utilities are fully deductible. They include water, trash, telephone, cellular, and electricity bills. 

Hire a Tax Expert

Here are reasons you should consider hiring a tax professional:

  • They have expertise in tax codes. Tax experts are up-to-date with changes in tax laws and regulations, making sure your company leverages all tax deductions and credits. 
  • They can save you money and time. Tax preparation can be exhausting and time-consuming. By having a tax expert deal prepare and file your taxes, you can save money and time that can be used in running your business. 
  • They reduce or eliminate errors. Tax filing mistakes can lead to penalties, lost deductions, and audits. A tax expert minimizes the risk of mistakes. 

As a small business owner, you should know the role of taxes in maintaining business profitability. The tips discussed above can help you effectively navigate the complex tax landscape, maximize tax deductions, ensure compliance with laws, and concentrate on the growth and profitability of your business. By partnering with a dependable tax professional, you can set your business up for success. 

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In Finance

How to Perform Credit Checks on Potential Tenants

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A tenant credit check is a crucial step in the rental process, providing landlords with valuable insights into a potential tenant’s financial reliability. By assessing their credit history, landlords can make informed decisions about whether to rent their property. In New Zealand, conducting tenant credit checks is a common practice, but it’s essential to do so legally and ethically.

Legal Considerations

  • Privacy Act 2020: New Zealand’s privacy laws strictly regulate the collection and use of personal information, including credit information. Landlords must comply with these laws when conducting tenant credit checks.
  • Tenancy Act 2011: This act outlines the rights and responsibilities of landlords and tenants. While it doesn’t explicitly mention credit checks, landlords must ensure their actions are fair and reasonable.

Steps to Perform a Tenant Credit Check

  1. Obtain Written Consent: Before conducting a credit check, obtain explicit written consent from the potential tenant. This consent should clearly outline the purpose of the check and how the information will be used.
  2. Choose a Reputable Credit Bureau: There are several credit bureaus in New Zealand, each offering different services and fees. Research and select a reputable bureau that aligns with your needs.
  3. Provide Accurate Information: Ensure that the tenant’s name, date of birth, and address are correct. Incorrect information can lead to inaccurate results.
  4. Consider the Scope of the Check: Determine the level of detail you require. Some credit checks provide basic information, while others offer more comprehensive reports.
  5. Review the Credit Report: Carefully examine the credit report for any red flags. Look for late payments, defaults, bankruptcies, or judgments.
  6. Assess Financial Stability: Consider the tenant’s income, expenses, and debt-to-income ratio. A high debt-to-income ratio may indicate financial strain.
  7. Verify Employment and Rental History: Contact the tenant’s employer and previous landlords to verify their employment and rental history. Ask about their payment history and any issues that arose.
  8. Consider Other Factors: While credit checks are valuable, they shouldn’t be the sole factor in your decision. Consider other factors, such as references, rental history, and the tenant’s overall impression.
  9. Communicate Openly: If you have concerns about the tenant’s credit report, communicate with them directly and respectfully. Explain your concerns and give them an opportunity to provide additional information or address any issues.
  10. Document the Process: Maintain records of the credit check process, including the consent form, credit report, and any correspondence with the tenant. This documentation can be helpful in case of disputes or legal issues.

Additional Tips

  • Use a Credit Check Service: Consider using a credit check service that specialises in tenancy credit check. These services can streamline the process and provide additional insights.
  • Update Your Rental Criteria: Regularly review and update your rental criteria to ensure they are aligned with current market conditions and legal requirements.
  • Consider Alternative Options: If a tenant’s credit history is a major concern, explore alternative options, such as requiring a guarantor or a larger security deposit.

Understanding the Importance of Tenant Credit Checks

While credit checks can provide valuable information about a potential tenant’s financial reliability, it’s crucial to use them as one tool among many. A well-rounded assessment should also include:

  • Rental History: Verifying previous rental history can reveal information about the tenant’s payment habits, lease adherence, and any issues with previous landlords.
  • References: Contacting references can provide insights into the tenant’s character, reliability, and suitability as a tenant.
  • Income Verification: Requesting proof of income can help assess the tenant’s ability to afford the rent and other associated costs.
  • Employment Verification: Confirming employment status and income can provide reassurance about the tenant’s financial stability.

Balancing Privacy and Due Diligence

While credit checks can be a valuable tool, it’s essential to strike a balance between protecting the tenant’s privacy and conducting due diligence. Landlords should:

  • Obtain Informed Consent: Clearly explain the purpose of the credit check and obtain explicit written consent from the tenant.
  • Use Reputable Credit Bureaus: Choose credit bureaus with a strong reputation for data security and accuracy.
  • Limit Information Sharing: Only share credit information with those directly involved in the rental process.
  • Avoid Discrimination: Ensure that rental decisions are based on objective criteria and avoid discrimination based on credit history.

By following these guidelines, landlords can conduct tenant credit checks effectively, while also complying with privacy and tenancy laws. Remember, a thorough and responsible approach to tenant screening can help protect your investment and ensure a positive rental experience for both you and your tenants.

 

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Tax Resolution
In Finance

Tax Resolution – What is It and How to Get Help?

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Do you need clarification about how to navigate the tax system? In that case, it is high time you learned about tax resolution. Working with the IRS and tax experts to find answers to your tax issues is known as tax resolution. People usually talk to their local finance companies, such as Tampa Bay area CPA, for tax resolution since taxes vary depending on your area of residence. If you have yet to pay your taxes, these finance companies can help you. 

The Internal Revenue Service (IRS) may impose harsh fines on people and companies with unpaid tax debts, which may even involve seizing assets. But don’t worry; tax resolution experts from finance companies can assist you since they can significantly lower or completely erase the amount the customer owes the IRS. Keep reading to learn more about tax resolution and finance company experts who can help you.    

What Is Tax Resolution?

Tax resolution is typically required when someone owes the IRS back taxes and has been delaying payment for a while. A tax resolution expert will help you with any IRS debt you may have by handling the tax resolution procedure, and the intention is to reduce your IRS debt as much as possible.  

Who Should You Contact First to Settle Tax Issues? 

Contact certain offices to solve your tax issues before hiring a finance service in Tampa Bay. 

  • Taxpayer Advocate Service (TAS) – You can use this free service to find solutions for your tax issues, such as unpaid taxes, unfulfilled or delayed refunds, etc. 
  • Low-Income Taxpayer Clinics (LITCs) – LITCs help those in disagreement with the IRS by offering instruction on the rights and obligations of taxpayers.  
  • IRS Office of Appeals – This IRS division assists in resolving tax issues without requiring you to appear in court.   

Tax Resolution

Contact Tax Settlement Companies for Tax Resolution  

Tax settlement companies can intervene to reduce the tax bill by hundreds or thousands of dollars. The tax settlement industry performs similarly to the debt settlement sector, and most tax settlement firms have former IRS workers who are tax professionals ready to fight for their customers. 

A tax resolution specialist’s primary goal is to assist customers in resolving a particular tax dispute they may have with the state or the IRS. Most customers seek guidance and consultation from tax resolution companies when they owe money to the IRS. Still, many also seek representation during a tax audit, and these experts can help in both situations. Tax resolution companies usually offer installment agreements, penalty abatement, audit representation, tax liens, tax levies, and trust fund recovery, among other financial services. 

Offer in Compromise 

Tax settlement companies lower their clients’ taxes by utilizing an IRS process called an offer in compromise. Certain taxpayers may enter into a special agreement with the IRS to settle their tax arrears for less than what is owed. However, to achieve this, the taxpayer must provide the IRS with comprehensive information on their assets, liabilities, and anticipated future income. Compromise offers usually need many months to process, and there are few offer-in-compromise applications that the IRS accepts.

Conclusion 

Tax resolution services have a variety of professionals on staff who have specific knowledge, experience, and skills in tax conflict, as well as several other disciplines. To provide its clients with the finest assistance possible, these companies work quickly and achieve results in less time than it would otherwise take without their help. However, before hiring an expert for tax resolution, you need to check the company’s previous records and customer testimonials to ensure they won’t waste your time and that your tax issues will be resolved.  

 

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Related Parties in 1031 Exchanges
In Finance

How to effectively manage related parties in your 1031 exchange

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Managing related parties in a 1031 exchange requires careful planning and understanding of IRS regulations. The IRS defines related parties as family members, including siblings, spouses, ancestors, and descendants. Business entities where you hold over 50% ownership also count as related parties. Recognizing these relationships helps prevent costly mistakes during the exchange process.

Risk mitigation strategies

  • Two-year holding rule requirements – Related parties must keep their exchanged properties for at least two years after the transaction. This rule stops tax-avoidance schemes through quick property flips. Track holding periods carefully through detailed documentation and calendar reminders.
  • Using qualified intermediaries effectively – A qualified intermediary adds neutrality to related-party exchanges. They handle funds, prepare documents, and ensure timeline compliance. Choose an intermediary with experience in related-party transactions for smoother execution.
  • Structuring multi-property exchanges – When exchanging multiple properties with related parties, track each property’s basis and value separately. Create clear records showing how properties match up in the exchange. This organization simplifies future reporting and proves compliance.
  • Building compliant timelines – Standard 1031 exchange deadlines apply to related-party transactions. Identify replacement properties within 45 days and complete transfers within 180 days. Add buffer time for extra documentation needs unique to related-party exchanges.
  • Creating proper documentation – Maintain records of all communications, agreements, and property transfers. Include relationship disclosures, holding period commitments, and fair market value assessments. Strong documentation supports exchange validity during audits.
  • Handling basis calculations – Track adjusted basis carefully when properties move between related parties. Record improvements, depreciation, and other basis adjustments. Accurate basis tracking ensures proper gain/loss calculations upon future sales.
  • Planning exit strategies – Develop plans for property disposition after the two-year holding period. Consider market conditions, tax implications, and business needs. Clear exit strategies help related parties meet their long-term investment goals.
  • Separate property management – Keep exchanged properties under separate management when practical. This separation creates clear operational boundaries between related parties. Good boundaries reduce compliance risks during the holding period.
  • Addressing partnership interests – Special rules apply when partnership interests join related-party exchanges. Structure these deals carefully to maintain exchange eligibility. Consider using drop-and-swap strategies when needed for partnership properties.
  • Risk mitigation strategies – Build safeguards into related-party exchanges through clear agreements. Include provisions for market changes, financial hardship, or other challenges. Good planning helps related parties navigate unexpected situations while maintaining compliance.
  • Property improvement planning – Coordinate improvement plans between related parties during the holding period. Document all capital improvements properly. Good improvement records support basis adjustments and future value calculations.
  • Creating exchange timelines – Develop detailed timelines covering identification, closing, and holding periods. Include milestone checks and compliance reviews. Strong timelines keep related-party exchanges running smoothly.
  • Operating property transfers – Plan smooth operational transitions between related parties. Address tenant issues, service contracts, and management changes early. Good operational planning reduces disruption during property transfers.
  • Meeting qualified use standards – Ensure all parties maintain qualified use of their properties. Investment or business use must continue throughout the holding period. Document property is used regularly to prove ongoing qualification.
  • Financial planning considerations – Build financial plans covering the full holding period. Include maintenance costs, debt service, and potential improvements. Strong financial planning helps related parties meet their holding commitments.

Success of Related Parties in 1031 Exchanges depends on careful planning and strict compliance. By understanding IRS rules, maintaining proper documentation, and following holding period requirements, these transactions can work exceptionally well for all involved parties.

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