January 4th, 2024
Today's tax lab picked up where we left off last session with further review of the tax plan submitted by Courtney Holness. Courtney came with additional information about her clients and their S Corp. After gathering this additional information, we were able to utilize certain tax strategies while crossing others off the list. We determined that neither party was eligible to be a real estate professional, took a closer look at how to employ their three daughters in the company, evaluated the requirements for the College Student Strategy, commercial depreciation, and retirement options after determining that they did have employees working at their company. Lastly, we looked at the Tax Plan's ROI to help determine the fees Courtney should charge for the plan. It was a great wrap up!
Next, we looked at a plan submitted by Lisa McAllister. Lisa has clients who are married filing jointly. The husband has a single member LLC owned by a trust. He buys and sells real estate properties. His wife does not wish to participate in the business. Last year, he sold 4 properties with some capital gains. We take a look at the Structured Ownership Program, and Installment Sale. He already has a Self Directed IRA, so we don't spend much time on retirement. Veronica suggests getting the depreciation schedule and closing statements on new properties so that we can evaluate a possible Cost Segregation. We also examine the possibility of the Husband being classified as a Real Estate Professional. This can be challenging when, as in this case, the person also has a W2 job. Veronica suggests a detailed log of the hours as a record of the participation. Lastly, we look at any fringe benefits that could be claimed as well. We had a great tax lab!
January 11th, 2024
In our latest tax lab, we had a productive and engaging session. The meeting began with a surprise visit from our founder and president, Jackie, who checked in with everyone and solicited innovative ideas to enhance TaxPlanIQ in 2024.
Firstly, we reviewed a tax plan submitted by Allen Pham, focused on his trucker client with an S Corp. Allen proposed several tax strategies including the Accountable Plan, Reasonable Compensation, Augusta Rule, Business Vehicle Usage, SALT deduction for pass-through entities, QBI Deduction, and dealing with Ordinary Loss on Worthless Stock. Veronica emphasized the need for task dates in tax plans to track pending actions and also demonstrated an efficient method to redact client documents for sharing in the lab. Additionally, we examined the fee structure Allen plans to apply for his services.
Next, we discussed Courtney Holness's tax plan for her clients - a real estate professional and her husband, who do real estate investing based in New Jersey. They have two sons but claim only one as a dependent and are considering establishing a donor-advised fund. Courtney identified several strategies including the Home Office Deduction, Noncash Charitable Contribution, Pass Through Entity, 401k, Reasonable Compensation, Roth IRA, and hiring their kids for tax advantages. We also looked at Courtney's proposed fee structure for her services.
Overall, the lab was extremely beneficial, offering practical insights and collaborative problem-solving for complex tax planning scenarios.
January 18th, 2024
Today, we kicked off the Tax Lab by examining a tax plan submitted by Lisa McAllister. We spent a good portion of the lab discussing how to select clients for Tax Planning purposes, focusing specifically on the characteristics of an ideal client. We also delved into the use of deposits and fees in Tax Planning, discussing the pros and cons of various fee structures. Veronica emphasized the importance of using the Client Questionnaire when first engaging with potential clients, a tool designed to assess whether a client is a suitable candidate for Tax Planning.
Next, we reviewed a plan from Lisa Sheeran, who works with three equal shareholders in a sales business. Currently handling their compliance work, Lisa is exploring ways to extend her services through Tax Planning. We closely examined one partner's 1040 form and identified several tax strategies to incorporate into a tax plan. Veronica also highlighted how jAIne, our virtual tax assistant, can support the creation of tax plans, offering strategies and resources for learning more about Tax Planning. Today's lab was filled with insightful discussions and valuable learning experiences!
January 25th, 2024
Today's meeting began with Veronica Herrera leading a demonstration on using the TaxPlanIQ dashboard to upload case studies. Jackie Meyer provided insights into the upcoming power hour topic on defined benefit plans and discussed the OCR feature for reading tax returns, emphasizing the need for redaction due to the risk of uploading sensitive client information. Candice opened up about her difficulties with the tax planning software, expressing confusion in entering information and applying strategies.
Veronica and Jackie showed understanding and support, acknowledging the common challenges faced by users. They proceeded to discuss the process of creating a client, tax plan, and adding strategies within the software, addressing specific concerns such as related parties.
Veronica Herrera and Candice Castner engaged in a detailed discussion about tax planning strategies tailored for business owners. They explored the intricacies of maximizing deductions, income shifting, and the implementation of strategies for S-Corps, emphasizing the potential impact on both federal and state taxes. The conversation also touched on the importance of careful planning and consideration of various tax implications, including the need to assess the impact of business decisions on personal taxes. Throughout the discussion, they provided practical examples and considerations for optimizing tax planning strategies for business owners.
The team also discussed the complexities of child income and tax implications, with Veronica Herrera providing a comprehensive overview of track strategies and the information available within them. They discussed the impact of a child's income on taxes, sharing experiences with clients and emphasizing the importance of considering state tax filing requirements. The conversation also touched on the kiddie tax and the team's approach to advising clients on state tax filings, particularly in states like California, New York, and Illinois. The discussion highlighted the need for careful consideration of state regulations and the potential implications for clients.
Finally, the team engaged in a discussion about software integration, focusing on the use of Zapier and Tax Dome. Jesse sought advice on recommended integrations, while Jackie emphasized the AI chat interface in Zapier and encouraged feedback submission through Jane for product improvement. The meeting concluded with a reminder about the upcoming Power Hour at 3 pm CST.