Individual Tax

The Effect of Tax Regulations on Your Individual Tax Returns

Congress and the Internal Revenue Service have made the preparation of tax returns with even slight complexity more than most people can handle. As a professional CPA Firm, we at VaughnCPA do  significant research each year to be sure that we are up to date with the laws and regulations and that we can properly assist or prepare your tax returns. Many of our clients have business interests, rentals, farms, etc., but even if you have  a seemingly straight forward return, a short free review may uncover some things that could reduce your taxes. One giant tax preparation firm has estimated that people who do their own taxes leave over $5 Billion on the table by failing to do their returns correctly. We will make sure you are not one of those people.

shutterstock_65341252 We believe that your individual return with the lowest possible legal and legitimate tax is our goal. Are you able to keep up with the steady stream of items coming from Washington? And then each state has multiple variations to the federal returns.

The following is a partial list of news items and changes to existing rules that we have needed to be familiar with since the beginning of the year:

  1. Donating a car to charity
  2. Capitalization rules related to depreciation
  3. Company expenses paid on behalf of your business
  4. Legitimate and Sham Trusts
  5. Whether you have to file a gift tax return
  6. Investing in Municipal bonds and Alternative Minimum Tax
  7. Changes in medical deductions
  8. Changes in definitions of real estate professional
  9. Deduction for losses on Ponzi schemes

And this is a very shortened list. None of these required a law change, only a change in the interpretation of the law. At VaughnCPA we do our best to keep up with these changes through several research sources. Our staff undergoes formal and webinar training on a weekly basis, outside of busy season.

With tax brackets from zero to 39.6% (not including your state) and the possibility of either a .9 percent or a 3.8 percent additional medicare surtax, planning at the individual level and early in the year is very important.