FAQs

How much can I gift to my family this year? Is that for each person or as a couple?
For 2018, you can gift up to $15,000 to each donee. For this purpose, each spouse has their own exclusion amount. This means that a married couple can together gift $30,000 to each donee for 2018 without having to file a Gift Tax return.

Do my estimated taxes and annual taxes due have to be received by the due date or just mailed by the due date?
Generally, the payments must be postmarked and mailed by the due date. We recommend sending any payments by certified mail so that you have a record of when they were sent and received.

What’s the status of my tax refund?
You can check the status of your federal refund at https://www.irs.gov/refunds.

When should I set-up a qualified retirement plan?
In order to be able to contribute to the plan for the current year, 401(k) plans, Profit Sharing plans, and Defined Benefit plans must be set up by December 31st; SIMPLE plans must be set up by October 1st; and SEPs don’t need to be set up until the due date of your tax return.

Should I contribute to a 529 plan?
Generally, you should first maximize your contribution to a 401(k), then personal tax deductible or Roth IRAs, and then use any additional available funds to contribute to a 529 plan.

Should I form a Corporation or an LLC?
Generally, an LLC is a more flexible vehicle to form, operate, and eventually sell and so should be considered your first choice. However, in particular situations a C Corporation or S Corporation may have some advantages.

Can I deduct my real estate losses against my business income?
Unfortunately, unless your AGI is less than $150,000 for a married filing joint return ($75,000 for single), you will not be able to deduct your unrelated passive real estate losses against other business and non-passive income and even if your income does fall under the threshold, you will be limited to a maximum deduction of $25,000. However, any unused loss will be carried forward indefinitely and if not used against future income, will reduce your taxable gain when the property is sold.

Can I deduct my car payments?
You are allowed to deduct any ordinary and necessary business expenses related to owning/leasing and operating a vehicle. However, if audited, the IRS will require adequate substantiation of the expenses. We suggest keeping a daily log showing destination points, mileage, and noting the business purpose for the trip.