As a Real Estate Professional, did you realize that you are required to complete a Tax Form  that is the form most audited by the IRS?  That’s right, as independent contractors, most Real Estate Agents file a Form Schedule C.  The IRS has found that Schedule C’s contain a large number of errors compared to other forms and finds that they are very successful with audit changes to the returns, and able to bill back a higher amount of additional taxes to the taxpayer that is audited. Hopefully, that makes you aware that as a Realtor, you need to make sure that your return is completed accurately and documented properly.  In a future blog, we will cover what you need to do to document your transactions properly.  Today, we’re going to discuss some general rules to keep in mind if audited.  ... 07/06/2021

When a Taxpayer owes the IRS, one of IRS's most powerful tools is the Notice of Federal Tax Lien (NFTL).  In this article, we’ll discuss some actions you as a taxpayer can take if the IRS is threatening you with an NFTL.  Six Options for a Taxpayer under Threat of an IRS LienHere are a six options to consider when under threat of an IRS lien: The IRS will not file an NFTL if the balance is less than $10,000.  If you are above that level but can pay the balance down to $10,000, the IRS generally will not file a lien. If your assessed balance is below $50,000, you can set up a direct debit installment agreement (DDIA) and request that the IRS not file a lien. This is known as a Streamlined Payment Plan. If over $50,000, there is now an option available for amounts owed up to $250,000 if w... 06/21/2021

As a Tax Professional, your Tax Professional should be able to provide advice on deductions that are available to Real Estate Agents and Brokers.  However, they don’t know what is going on daily in your business and what deductions you are entitled to.  Unless you are able to properly track their income and deductions, you could end up paying more taxes than are needed, and maybe even worse yet, getting stuck in an audit where you end up substantial amount of additional taxes  PLUS penalties and interest.  That doesn’t even include the chaos and stress in your life, is not a fun position to be in, and one you want to avoid at all costs. While I’ll cover more complex bookkeeping procedures in the future, today I’m going to cover the basics of what you need to track in your bookkeeping sy... 06/07/2021

Every year, millions of taxpayers don’t file their Federal income tax return on time even though its rarely a good idea.  Why does that happen and what are the consequences of not filing a tax return? Why don’t Taxpayers file timely?There are a number of reasons that taxpayers don’t file their tax returns timely, but the two reasons below are what I see most often in tax practice: Most individuals don’t file their tax returns timely because they owe, or believe they owe, income tax. They’re hoping the problem will magically go away.  They do not have the information to file their tax return properly. Sometimes, these are taxpayers who work W-2 jobs, but more often, it tends to be taxpayers who are self-employed, who have more complicated tax returns.  The goods news is that there are so... 05/17/2021

Veteran’s Home Loans for Dallas Texas!!If you are reading this, you or a family member have likely served in our military.  First off, we would like to say a sincere “Thank You” for your service!  We recognize that not only do our Veterans sacrifice by serving, but their families do as well-, and we owe you all a debt of gratitude!One of the best benefits Veterans and their families receive due to their service to our great country is the VA home loan benefits.  We are going to outline just a few of these significant benefits in this article for you.Here are some of the major benefits you may receive by using your VA home loan benefits:*100% financing available- one of the very few loans available with no down payment!*Lower rates available than most loan programs- which saves you money... 04/19/2021

The IRS has recently began sending out a barrage of CP504 Notices to Taxpayers with tax debt.  It is typically sent by Certified Mail and states Notice of Intent to seize (levy) your property or rights to property.  It’s an important notice for several reasons that I’ll outline below:  The IRS has now sent you several notices for a tax amount and you have not resolved it satisfactorily. The IRS can file a Federal Tax Lien against your current and future assets. This notice allows the IRS to levy your state tax refund if applicable to you. In 5 weeks, the IRS may send to you a Final Notice of Intent to Levy. This notice allows them to levy your bank account, garnish your wages, and potentially seize other assets.  While the IRS may be sending a Final Notice of Intent to Levy, it may or m... 04/19/2021

As Self-Employed Independent Contractors, Real Estate Agents may need help in running their business and sometimes it makes sense to hire family.  Today, we’ll cover a few areas where it might be helpful to hire your children as well as adult family members to provide services to the business.   Employing ChildrenAn excellent strategy to reduce the overall family tax burden is to employ your children.  Unlike investment income earned in their name, your child's earnings will not be subject to what they call "kiddie tax." What kiddie tax means is that your child's income will be taxed at your highest rate.  However, earned income is not subject to this regulation.  Therefore, if you pay your child for services actually performed, you can take a tax deduction and they may owe no tax on th... 04/05/2021

Veterans now have access to a new VA renovation loan to refurbish or remodel their homes.  This loan program is available for new home purchases as well as for remodeling homes currently owned by the veteran.  It is estimated that over 50% of homes nationally are 40 years or older, and in the current housing market many homes are in need of updating, addressing deferred maintenance, or improving the energy efficiency of homes to lower utility costs.VA loan benefits include the following unique advantages:  a.  up to 100% financing, b.  no mortgage insurance, c.  up to $ 35,000 in renovation funds escrowed, d.  all renovations must be completed within 60 days of closing, e.  you can close on a purchase or refinance in the “as is” condition, f. you can borrow against the future value of t... 03/29/2021

A question that comes up from my Realtor clients along with many other small business owners is can I deduct my Home Office costs.  This has become even more of an issue due to COVID as more and more of us work out of our homes.  Today we’ll touch on when you can deduct your Home Office and what can be deducted. When Can Your Home Office be Deducted? There are two important criteria as to when your Home Office can be deducted.  The space is used Regularly for business purposes.  The space is used exclusively for business purposes. Remember that BOTH of these criteria must be met in order to qualify for the deduction. What Can I Deduct?As a self-employed taxpayer with a qualifying Home Office, both Direct and Indirect expenses can be deducted.  Direct expenses are those related to just t... 03/22/2021

We are excited to let you know that we have invested in a new technology called Homebot to be your free personal guide through your home-buying journey.Homebot is a monthly financial dashboard that enables you to maximize the most of your home-buying search.When you sign up you will receive a regular email called the “Homebot Market Report”- a customized interactive guide with critical information to help you buy smart. Homebot offers buyers the ability to search for homes in your area at no cost to you.What will the Homebot Market Report do for you? Explore neighborhoods and cities nationwide to find the best market to match your goals Use current market temperatures to guide your buying strategy Estimate how much home you can afford at today's interest rates See how much your new home... 03/16/2021

Over the past year, since the onset of COVID, the IRS has taken a very hands off approach to tax items.  However, that is beginning to change.  Late in 2020 we began to see the IRS filing Notice of Federal Tax Liens (NFTLs) on taxpayers with IRS debt and we expect that to begin even more prevalent as taxpayers emerge from the pandemic owing the government and with the government in need of revenues.  So, what is a Notice of Federal Tax Lien and what should you do if one is filled What is a Notice of Federal Tax Lien (NFTL) A Notice of Federal Tax Lien (NFTL) is a public document filed to alert third parties that the taxpayer owes the IRS money.  Filing the NFTL is a consequential step taken by the government and can have a serious impact on the taxpayer.   Prior to filing the NFTL, the ... 03/08/2021

Veterans now have access to a new VA renovation loan to refurbish or remodel their homes.  This loan program is available for new home purchases as well as for remodeling homes currently owned by the veteran.  It is estimated that over 50% of homes nationally are 40 years or older, and in the current housing market many homes are in need of updating, addressing deferred maintenance, or improving the energy efficiency of homes to lower utility costs.VA loan benefits include the following unique advantages:  a.  up to 100% financing, b.  no mortgage insurance, c.  up to $ 35,000 in renovation funds escrowed, d.  all renovations must be completed within 60 days of closing, e.  you can close on a purchase or refinance in the “as is” condition, f. you can borrow against the future value of t... 03/02/2021

As a Real Estate Agent, you most likely find yourself sometimes showing a potential buyer tens of homes  before they make a decision to purchase a property (or don’t).  While that can be frustrating, it’s important to make sure that as a Realtor you get the proper deduction for all of that driving.  So, what can you deduct and how can you maximize your Deduction.As a Self-Employed Taxpayer, the IRS provides two options for deducting automobile expenses, and you are allowed to select the method that is most advantageous to you. The options are: Actual Expense Method, or Mileage Method I recommend that you keep track of your actual expenses and business mileage so you can compare the two methods and select the one that will create the largest tax deduction.  Using either method, you are  ... 03/01/2021

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Our DFW Tax Firm specializes in guiding Realtors through their tax issues.  Our goal is to help these professionals minimize their taxes while making sure that they stay out of trouble with the IRS.  Realtors, like other small business owners and independent contractors, don’t have the luxury of withholding like their W-2 counterparts.  Because of this, probably my biggest challenge in working with Realtors is to help them to make sure that they get their taxes withheld timely and properly.  Our goals is that they avoid ending up with a huge tax bill in April that they can’t pay, with the added insult of substantial penalties and interest tacked on. As an independent Contractor, you, the Realtor, have estimated tax payments due to the IRS on: April 15th for income earned from January th... 02/16/2021

We are excited to let you know that we have invested in a new technology called Homebot to be your free personal guide through your home-buying journey.Homebot is a monthly financial dashboard that enables you to maximize the most of your home-buying search.When you sign up you will receive a regular email called the “Homebot Market Report”- a customized interactive guide with critical information to help you buy smart. Homebot offers buyers the ability to search for homes in your area at no cost to you.What will the Homebot Market Report do for you?     Explore neighborhoods and cities nationwide to find the best market to match your goals     Use current market temperatures to guide your buying strategy     Estimate how much home you can afford at today's interest rates     See how mu... 02/10/2021

We are excited to let you know that we have invested in a new technology called Homebot to be your free personal guide through your home-buying journey.Homebot is a monthly financial dashboard that enables you to maximize the most of your home-buying search.When you sign up you will receive a regular email called the “Homebot Market Report”- a customized interactive guide with critical information to help you buy smart. Homebot offers buyers the ability to search for homes in your area at no cost to you.What will the Homebot Market Report do for you?     Explore neighborhoods and cities nationwide to find the best market to match your goals     Use current market temperatures to guide your buying strategy     Estimate how much home you can afford at today's interest rates     See how mu... 12/15/2020

Payroll Tax Problems are a common denominator in a large percentage of failed businesses.  Either they are an initial driver of the cause of the business failure or a symptom of those problems.  However, one thing is certain, once a company begins to experience payroll tax problems, it becomes very, very difficult to get out of the vicious circle and get the business back on track. Why are Payroll Tax Problems Tough to Survive? When a company begins to get behind, there are several factors that make it difficult to turn the problem around.  Remember that the IRS prioritizes Payroll Tax Problems above normal Tax Debt due to the failure of the business to remit employees payroll withholdings held in trust.  Some reasons why it becomes difficult to resolve Payroll Tax Debt for businesses ... 12/14/2020

We are excited to let you know that we have invested in a new technology called Homebot to be your free personal guide through your home-buying journey.Homebot is a monthly financial dashboard that enables you to maximize the most of your home-buying search.When you sign up you will receive a regular email called the “Homebot Market Report”- a customized interactive guide with critical information to help you buy smart. Homebot offers buyers the ability to search for homes in your area at no cost to you.What will the Homebot Market Report do for you?     Explore neighborhoods and cities nationwide to find the best market to match your goals     Use current market temperatures to guide your buying strategy     Estimate how much home you can afford at today's interest rates     See how mu... 12/09/2020

COVID-19 is having a drastic impact on Small Business Owners across the country. During any economic downturn, business owners often have to make difficult cash flow decisions. One solution is for business owners postpone making payroll tax payments to the IRS in order to make payroll for their staff, pay rent, etc…. While this allows them to continue to operate in the short-term, there are long-term implications of this decision that these business owners are often not aware of or are a risk they feel they need to take to survive.   How Does Payroll Tax Debt Differ?As a general rule, the IRS takes a more aggressive stance towards businesses that incur payroll tax debt. The IRS tends to address these issues quicker, file Liens and Levy assets quicker, personally pursue responsible parti... 12/01/2020