Real Estate Agents Win Again

RealEstateAgents

Real Estate Professionals Pay Less Taxes in 2019
The Tax Cuts and Jobs Act has made sweeping changes across all industries and sectors; it was not designed to simply provide relief for individual taxpayers. Those who are in real estate will be delighted to learn they will pay less taxes because of the Act. Since this is a new law, it is critical that entrepreneurs and business owners understand its implications to discover how it will impact your tax liability – and find ways to reduce it. It’s safe to say the IRS won’t send you a check with a hefty refund because you failed to utilize all the legitimate deductions.

Consider the professional who established a pass-through entity, of either an LLC or S Corp. Thanks to the passage of the Act, a substantial change has been made in calculating the amount of tax you will owe. Now, agents may deduct up to 20 percent of qualified business income.

Save money; create a professional association One legitimate way to chisel down the amount of tax liability is one that may not be familiar to most. Typically, any funds in a real estate transaction must be paid to the agent, if he or she has a DBPR license in Florida. However, if the agent establishes a Professional Association (often known as a PA), the individual may receive the 20 percent pass-through income deduction on the profit on their income. That’s right: 20 percent! For example, if John Doe is classified as a professional association, it would be set up as: John Doe, P.A. A simple step like this is sure to lower your tax liability.

Depreciation
Many real estate agents may not know what items they can depreciate. Consequently, they end up paying entirely too much in taxes. For example, many are not taking advantage of a home office deduction. For those who fall in this category, you may depreciate a portion of your home.

Also, you may be able to depreciate your vehicle. Let’s consider that you purchased a $20,000 automobile and you use it 75 percent of the time for business. Calculating your mileage is the best way to determine the percentage. Now multiply $20,000 X 75 to arrive at $15,000. This amount is called your depreciable cost basis. You are allowed to depreciate $15,000 – but over time. Many real estate agents overlook thousands of dollars in legitimate annual depreciation costs because they are not aware of them, or they fail to keep proper documentation.

Why it is important to engage a tax expert?
Real estate agents know their business, inside and out. Similarly, tax professionals know their business. TaxLeaf, that has been operating in Florida for more than four decades, is one such firm. Interpreting this new legislation is best left to the experts. For example, the team at TaxLeaf would not be someone you would enlist to sell real estate on your behalf. In their 42 years, they have helped business owners navigate tax rules and regulations. Oftentimes, proprietors don’t want to admit they can’t handle their own taxes. This year, TaxLeaf anticipates more business than usual; they expect many real estate agents will try to demystify the

new tax reform law on their own. No doubt, agents will get caught up in a maze of codes. They may not understand Section 179 expensing, carried interest, and qualifying assets and a host of other tax terminology. TaxLeaf can explain those words and terms – that may seem like Greek to the average person – in simple, easy-to-understand language. Speaking of language, their team is multi-lingual; they speak English, Spanish, Portuguese and Russian.

Make things simple with accurate recordkeeping
Remember those New Year’s resolutions? People have good intentions but still put off tax preparation until the last few days before the deadline. Then it’s a fire drill; they frantically struggle to locate all those documents to demonstrate to the IRS what their income and expenses were for the year.

TaxLeaf has been helping business owners and individuals with much more than tax return preparation. Their diverse professionals provide business owners with professional, accurate bookkeeping and payroll services. You’ll get access to LeafCloud – a cool App that gives you online access to your most important tax documents and filings. No matter the language or the culture, TaxLeaf is ready to assist. Stop by at your convenience for a free, no obligation consultation.

Ready or not, tax season is here. Do yourself a favor; let us help you get organized and compliant.

Tax Season is Officially Open

taxseason2019

How the New Tax Reform Act will Affect You
The Internal Revenue Service is now open for the 2019 tax filing season. This year will be the beginning of an entirely new process for the agency, which is already processing 2018 federal tax returns. In spite of the government shutdown, the IRS is operating at full capacity.

What is different about this new tax-filing season?
Congress passed the Tax Cuts and Jobs Act in December 2017, the first major tax overhaul since President Reagan signed the Tax Reform Act of 1986. The goal was to simplify the tax filing process for not only individual taxpayers but also for businesses.

New forms, new changes
While the Act implemented a vast array of changes, the ones that will apply to most taxpayers deal with:

  • Child credit deductions (doubled)
  • Income tax brackets (adjusted to account for inflation)
  • Standard deductions (doubled)

Child credit
The 2018 tax reform act has doubled last year’s $1,000 deduction: it’s now $2,000 per qualifying child under age 17. There’s more good news; they increased the income thresholds. A married couple filing jointly may earn $400,000, and an individual filing as a single taxpayer can earn up to $200,000 and still take the deduction.

Tax Brackets
It would be simpler if everyone paid the exact same percentage in taxes, but it is doubtful it will happen in our lifetime. The IRS has calculated various ranges to determine tax liability. The Act still has seven tax brackets and seven marginal tax rates; however, it changed the income ranges within each range.

When you prepare your 2018 tax return you will notice that these marginal tax rates have shifted – in your favor! The percentage rate you will pay will be determined after deductions.

Standard deduction
The Act also doubles the standard deduction. For example, a single taxpayer’s deduction that was $6,350 in 2017 jumps to $12,000. For a married couple, it increases from $12,700 to $24,000 in 2018. Furthermore, the Act eliminated personal and dependent exemptions.

Don’t leave money on the table
Many business owners and individuals have been accustomed to ‘business as usual’ when filing taxes. After all, there have been no real changes in 33 years. For decades, they have relied on the same at-home tax preparation software. This is not a year to assume that was has worked in the past will still be good this year. If you want to reduce your tax liability – who doesn’t? – you should strongly consider contacting your local Tax or Accounting Office. To make sure you take advantage of all the available deductions, this may be perfect chance to make the switch to a professional, especially if you have complex tax issues.

Do I Need a CPA?
With all these new changes, you may need an expert to guide you through the process. This is our best advice in help you avoid mistakes and perhaps help lower your tax liability. Tax professionals don’t always have to be CPA’s. In fact, most people prefer a non-CPA to prepare their tax returns at a lower cost and a higher level of service. Check out TaxLeaf if you can. They have multiple locations throughout South Florida and Orlando. They understand tax credits and deductions. The best part, they’re human – unlike tax preparation software – and understand your situation best. Another bonus is that they offer a no-fee consultation, so stop by at your convenience and ask your toughest questions.

Accurate records = simplicity
Every year, millions of taxpayers struggle to keep better track of their income and expenses so they won’t be scouring through their filing cabinets and shoe boxes at midnight looking for receipts. TaxLeaf, founded in 1976, has been helping business owners and individuals with much more than tax return preparation. Their diverse professionals provide business owners with professional, accurate bookkeeping and payroll services. You’ll get access to

LeafCloud – a cool App that gives you online access to your most important tax documents and filings. No matter the language or the culture, TaxLeaf is here to help you this tax season. We have tax professionals that speak English, Spanish, Portuguese and Russian.

Ready or not, tax season is here. Do yourself a favor; let us help you get organized and compliant.

Tax Leaf takes the lead

taxbookkeepingpayrollnmb

Tax Leaf is leading the way as one of the fasting growing recognizable South Florida business bookkeeping and payroll companies. The exposure at trade shows and conferences has been so well received, allowing Tax Leaf to earn new business. Having offices that service Miami, Coral Springs, Aventura and the surrounding communities gives Tax Leaf an edge across South Florida.

Join Tax Leaf at the next business conference or simply connect with us directly to learn more about how your business can benefit from teaming up with Tax Leaf.

Income Tax Extension – Automatic Requests

This past Monday October 17, 2016 (Oct. 15) was the filing date deadline for those that filed a tax extension for their April 15 deadline. When the 15th falls on a Weekend or Holiday, the timeframe is extended to the following business day – this happened this year. However did you know that there are 3 ways to request an automatic extension of time to file a U.S. individual income tax return?

Access our website to get in contact with us to learn more about how to arrange an automatic tax filing extension. The professionals at Tax Leaf offer tips and tricks to most efficiently operate your business tax services. Tax Leaf is focused on offering valuable business tax advice for those operating in South Florida. With locations in North Miami Beach, Coral Springs, and servicing South Florida it’s so easy to connect with a team member to get you on the right track today.

tax-extension-request

Time to Connect with an Accountant

Small businesses must constantly juggle competing priorities and make the tough decisions on where to allocate valuable resources. Here’s a great excerpt from an article that discusses many valuable reasons to connect with an accountant to help with your business financial planning.

…Accountants bring knowledge, experience, expertise and a perspective that can help build a plan to turn business ambitions into reality.

Here are seven reasons that all small business owners should keep in mind when deciding whether an outside accountant is a fit for their operation.

Business owners using an accountant report the service is key to their success. In an accountant usage study conducted by Sage among U.S. business owners, 89% of respondents agreed that working with an accountant was a critical element of their success.

Accountants can bring your financial information to life. If all your data is just “sitting” in a database and you’re not interpreting, analyzing or using it to help drive your business direction and decisions, then you’re missing out on a great opportunity. Have an accountant help you dive into the numbers and use them to propel greater business growth and profitability in the future.

Accountants can provide a new perspective. Sometimes small business owners are so “in the weeds” running the day-to-day operations of their business that they may not be able to see the whole picture. Someone who is removed from the business can provide a different perspective that may otherwise be missed. Meeting with an accountant can be like taking a step back, looking at the bigger picture and gaining a fresh, new perspective. Sometimes that’s all it takes to come up with the next big idea.

READ FULL ARTICLE – Adding it up for success: How accountants can help small business owners gain insight into their operations

hire-accountant-nmb

Are you thinking of opening your own Business?

It’s so important to have a clear vision and full understanding of what it takes to open your own business. Our team is focused on working with entrepreneurs to offer guidance throughout the start up process.

Here’s a quick excerpt from a wonderful article published on entrepreneur.com:

1. Do a self-inventory.
Not everyone has what it takes to start a company. That’s not to say that your idea is not brilliant. It just means that you may not have the personality traits to handle launching a company of your own.

Before investing any time or resources, evaluate yourself and see if you have some the typical traits of an entrepreneur. Are you motivated, able to adapt and confident? Are you resilient?

2. Develop an idea.
Don’t just start a business because something is in vogue and you think commercializing it will make money. Develop a business concept that you’re passionate about related to something that you have experience with. From there, come up with a product or service that you believe can enhance the people’s lives.

3. Test the plausibility.
Once you’ve settled on an idea, figure out how you can make it become a reality. Is the product or service something that people want or need? Can you make a profit selling it? Does the product work?

Read the entire article – https://www.entrepreneur.com/article/235903

Accounting services for South Florida businesses

If you’re in business, we’re ready to help! Our accounting resources can make a major difference to your business. Connect with us to learn how!

business-accounting-nmb

In South Florida there are so many industries and businesses that make up  a diverse and exciting marketplace. Because of this spectrum of sectors, Tax Leaf has designed accounting services that are ready to service your specific business needs.

Our Accounting service are divided into many industries: medical, legal, dental, real estate, retail, food/ restaurant, grocery store, gas stations, and so much more.

Explore the links on Tax Leaf to learn more about our services for your business.

Best online Tax Calculator

calculate-payroll-tax

Take advantage of our tools! This is a great example of our calculator resources online. These free tools are designed to help companies best understand various tax responsibilities.

Online tax calculators are valuable; however, nothing replaces connecting with a team of tax professionals to review your specific business needs. Tax Leaf has several locations and robust online services to assist with your bookkeeping and business tax services in Miami.

Connect with us today to learn how we can help your business.

You can discover tax calculators for the following tasks:

Personal Tax 1040

Salary Payroll Tax

Hourly Payroll Tax

Payroll NET-GROSS

Self Employment Tax

#TaxLeafSolutions #taxcalculators

tax-calculator-services

Bookkeeping Essentials for your Business

gross-profit-margin

Accurate bookkeeping is a necessary task for all business owners who plan on running a profitable business. This sounds simple, but it’s actual can be challenging for a small business owner to accomplish on their own. At Tax Leaf, we’ve helped thousands shift gears and know all the obstacles that can exist when operating a business. It’s the easiest to have our team review your workflow and analyze the best methods to keep your bookkeeping on track.

South Florida is blossoming with new business and it’s our goal at Tax Leaf to propel companies to new heights. We do this by setting up a seamless administrative system to keep the finances managed correctly. When you know your numbers it’s only then that you can really understand your business operations. This is the first step in getting ready for real growth expansion and of course success.

Tax Leaf has numerous location in South Florida and tremendous experience to ensure your business bookkeeping is done right. Contact our team today to schedule a bookkeeping consultation.

Get together with the best booking team in #SouthFL: www.taxleaf.com