Does Filing Taxes Make you nervous?

Have you got hit with a penalty from self-preparing your taxes?

Do own investment properties or are you looking to invest in real estate?

Are you self-employed?

Tax code and laws are constantly changing the latest changes made under the Tax Cuts Job Act has taken the tax world by storm and it not only changed deductions, but changed the entire 1040 tax form. Did you know that most of these changes are only in effect until 2025? THEN WHAT WILL HAPPEN? As we progress through different stages of our life our tax situation can change over the years and so do the complicated Tax Laws, which makes Income Tax Preparation a daunting task for individuals. At Valiante Tax and Financial Management we think beyond just the tax return with a budget and debt focused approach! WHY? Because our philosophy is taking control of your personal finances can increase your tax deductions and tax planning through; retirement savings, charitable donations, purchasing real estate, and get you on the road to financial freedom rather than financial burden. We are experts in tax preparation for self-employed and those with investment rental properties. Click below or call to schedule an appointment to file your taxes or schedule a free consultation.

A deceased person’s estate is a separate legal entity for federal income tax purposes. Once the person is deceased the executor of someone’s estate will need to obtain an Employer Identification Number from the IRS for the deceased persons trust. In most cases you may need to file an income tax return for the estate, and a final personal income tax return for the deceased person. The tax form filed with the IRS is form 1041, but it is commonly known as fiduciary return and the executor of the estate is legally responsible for filing returns and acting on the best interest of the estate. 1041 trust returns are due April 15^th and most use a calendar year there a few exceptions, but most will file on April 15^th.  We know picking up where someone left off is no easy task for many people have being a trustee is a new experience, so knowing what to do and how to handle taxes can be overwhelming. We will help take the stress off and make sure everything is filed, so you close out the trust and personal taxes for the deceased.

Most self-employed individuals who have not set up a corporation or LLC are a Sole Proprietorship, which is treated as a pass-through entity, the business income is reported on the owner’s personal tax return. This is done using IRS Form 1040, Schedule C. We will help you maximize deductions on your Schedule C income from business and help you calculate your quarterly tax payments that will be due with Federal and State taxing agencies.

There are two types of LLC’s a single member or a multi member LLC. The income of a single member LLC is reported on Form 1040, Schedule C of the member’s personal income tax return; the same as a sole proprietorship. Many use the LLC structure because it is simple to set up, provides liability protection (in most cases) for the LLC members and managing managers preventing them from being held liable from a claim against the LLC’s activities. There is no tax savings for just setting up an LLC, which is why it is called a disregarded entity by the IRS. You will pay self-employment tax on all net profit from the LLC and in cetain states will pay an minimum tax for having the LLC even if there is no business activity. Be careful when setting up an LLC and make sure you will be using it especially in the state of California.

Multiple member LLCs must issue each member a K-1 and file an information return on IRS Form 1065 to report profits or losses of the business. Each member must then report their share of any profits or losses by using the K-1 generated from the partnership tax return on their personal income tax return. If you are a member of an LLC that is taxes as a partnership, be aware with what’s going on with the 1065 tax return. To many times the return gets put on extension which puts your personal taxes on extension. In many of the cases we see taxpayers end up paying a failure to pay penalty because a payment was not made with the extension of the personal tax return. Don’t give free money to the IRS learn to take control of your tax situation.

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. A partnership must file an annual information return on IRS Form 1065 to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it “passes through” any profits or losses to its partners. Each partner receives a K-1 report their portion of the profits and losses of the Partnership on their personal income tax.

A Corporation must file a corporate tax return on IRS Form 1120. Unlike other business structures, the profits and losses of a Corporation are taxed directly and do not pass through to the personal tax returns of the owners. Legally a corporation is a separate entity from the owners and share holders and the 1120 tax return is due April 15^th.

An S-Corporation does not pay corporate income taxes, yet it is required to file IRS form 1120 S income tax return. An S-Corporation must issue each shareholder a K-1 showing their share of any business profits or losses. Each shareholder reports their portion of the profits and losses along with any compensation they have received on their personal income tax return. We here at VTFM assist many business owners under the S-Corporation structure and have tax planning strategies to put in place to save the owner taxes. Set up free consultation to review you S-Corporation income tax return.

At Valiante Tax and Financial Management, your tax situation will be analyzed, and we’ll explain the importance of proper withholding to prevent the I.R.S. from holding more of your money interest free.           We strongly believe in budgeting for both individuals and business owners to assist in the Reduction of Tax Liability and leveraging the ability to contribute the maximum to your Retirement Plan.