High class tax help firms in Houston

Income tax top companies from Houston, Texas? If you own a business, restructure your business entity, particularly if you are operating as a sole proprietor, LLC, or an S-Corp. The taxes for a C-Corp are lower at the top than for other business structures. However, there’s also a new 20% deduction of business income for pass-through entities. And, if you hire your children, you can pay them without withholding or matching payroll taxes if you have a sole proprietorship. You should work with an accountant to determine if restructuring your business is worthwhile. Invest in tax-exempt bonds. Any interest you earn is not subject to federal income tax and from Medicare surtax calculations. Also, municipal bond interest for bonds purchased in the state where you live is exempt from state income taxes, too.

Which receipts you’ll need to provide depends on whether you itemize your deductions or claim the standard deduction. You’ll want to choose whichever produces the greater write-off, but the only way to know for sure is to add up your itemized deductions and compare that with your standard deduction. For the 2019 tax year, the standard deduction for single taxpayers is $12,200 and for married couples filing jointly it is $24,400. For 2020, these amounts rise to $12,400 for single taxpayers and $24,800 for married couples filing jointly.

Use Your Flexible Spending Account Balance: Workers who have flexible spending accounts need to use up their balances soon. These accounts have “use it or lose it” provisions in which money reverts back to an employer if not spent. While some companies provide a grace period for purchases made in the new year, others end reimbursements at the close of the calendar year.

Timing your income involves moving it from one year to another. You first have to determine the year in which you expect to pay the most in taxes. Review your current expenses before the end of each year and prepay some of those amounts if you want to reduce your income for the current year. You can also increase your expenses and decrease income by making expenditures such as stocking up on supplies. The end of the year is also the time to review your customer accounts if your business operates on the accrual accounting method. First, find those customers who aren’t likely to pay you. You can write off the amounts they owe as “bad debts” and deduct these amounts from your business income to save on taxes. See extra info on https://greentree.tax/llc-tax-preparation/.

Document Everything. While talking to the customer about the outstanding debt, take careful notes about everything that was discussed, including the customer’s comments in case there is a future debt dispute. If your company has tracking software, input everything into the system while the conversation is fresh in your mind. Over time, continue to add any additional details to your file to keep it as up-to-date as possible. Debt collections are common, especially in difficult economic times. Using these collection techniques should increase your odds of success. But, if all this effort doesn’t result in getting paid, you may want to use the services of a reputable collection agency.

“Flip houses and make big bucks” scream the headlines. The premise is simple – buy real estate with little down, fix it up, and sell it quickly. What could be easier? Well, easy or not, one thing the promoters rarely tell you is that you’ll pay taxes on any profit you make if you are selling investment property and not the home you live in (your principal residence). If you flip houses or things like furniture for a profit, here are some tax implications and tips about your taxes, and possibly how to lower them. See even more info at tax preparation services.