Category: SR Client Questions

Client Question: What is my correct filing status?

Determining your correct filing status is a critical step in the preparation of your tax return.  It is used to determine your standard deduction, eligibility for certain credits and deductions, and correct tax amount.  For example, income limitations aside, the...

Client Question: Do I Need to File a Tax Return This Year?

You are required to file a federal income tax return if your income is above a certain level, which varies depending on your filing status, age and the type of income you receive. However, the Internal Revenue Service (IRS) reminds...

Five qualities to look for when hiring a bookkeeper

Hiring a bookkeeper can be a tedious undertaking.  However, knowing the right characteristics to look for can make the process less daunting.  The following is a list of five important qualities to look for in a bookkeeper: 1.  Tech Savvy...

Client Question: Should I convert my home to a rental property?

For various reasons, including a significantly depressed real estate market, homeowners can consider converting their personal home to rental property. The process for making this decision should include an analysis of economic factors, such as the homeowners’ marginal tax rate...

Client Question: Are insurance proceeds I receive from a fire loss taxable?

As almost always, the answer is "it depends".  In general, there is taxable income if the amount received from the insurance policy is more than the cost of what was lost.  However, there are also exceptions to this rule.  For...

SR Client Question: Can I deduct expenses related to my “Home Office”?

Whether you are self-employed or an employee, if you use a portion of your home for business, you may be able to take a home office deduction. Generally, in order to claim a business deduction for your home, you must...

Client Question: “What should I do with an uncashed check?”

Many taxpayers might be pleased to see a "You have unclaimed property waiting!" letter from the State of Michigan.  But what are your responsibilities as a business owner with regards to unclaimed property?  In most cases, unclaimed property takes the...

Client Question: “I’m unhappy with my annuity. What are the tax implications of changing it?”

You have invested in an annuity.  After a period of time, you review the results of your investment and determine that the annuity is not doing what you wanted it to do when you made the investment.  A tax-free exchange...

SR Client Question: “Do I need to disclose my foreign bank account?”

Yes!  If you have a financial interest in or signature authority over a foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service.  This includes bank accounts, brokerage accounts, mutual...

SR Client Question: Do I need an audit? Or a compilation? Or a review?

To Audit or not to Audit….. Just the word "audit" can cause business owners to shudder (or yawn).  Use the words "compilation" or "review" and eyes glaze over. But knowing the difference between these important terms, and which kind your...