Filing taxes can be huge hassle to most professionals. Depending on the profession that you are in, it can be as simple as doing an individual filing of a W2 form or it can be as complicated as claiming deductions, harvesting tax loss, so on and so forth. Now, if you are a doctor working in North Palm Beach area, you might want to consider outsourcing this important function to a CPA North Palm Beach agency to help you save time and money, especially when your practice is earning you more than six figures annually. Here are some top reasons why doctors should consider hiring CPA for their taxes:
A. They work for themselves
Doctors who run their own practice do not have the privilege of an employer who withholds taxes from their paychecks every month. They are fully responsible for keeping track of all the income, expenses and deductions if any. Not only that, they also have to estimate how much will their tax payments be every quarter. Doing all of these work is not only troublesome, it is time consuming and hinders doctors from focusing on what they do best, which is treating patients. If you ever feel like pulling your hair out trying to understand deductible expenses, depreciation and accounting inventory, it is much better to leave it to the hands of CPA North Palm Beach.
B. They have investments, other side incomes and foreign bank accounts and are managing them personally
When we talk about investments, we generally refer to traditional retirement vehicles such as Roth IRA or 401(K). These vehicles are not only used to purchase standard investments such as stocks, bonds and mutual fund. There may also be some doctors who decide to take more risk by investing in unconventional products such as bitcoin, contracts for difference or leveraged etfs. Filing taxes on these investments may get complicated and it is better to seek help from an experienced CPA. Now, what if they own a foreign bank account or investment? Things can get even more complicated. When it comes to foreign accounts, there are more stringent tax filing requirements from the IRS, even if you do not earn anything from those investment. Besides, the penalty for flouting the rules is very steep. Unintentional violation of the rule can attract penalty up to $124,588 while intentional violations can attract penalty of $124,588 or half of the balance in the account, whichever higher. As you can see, it is not worth taking things into your own hands when they can get so messy and complicated. For the record, foreign interest does not only mean share investments in public listed companies overseas. Earning money from overseas business, holding a directorship in a foreign entity and becoming an authorized signer on a foreign account all fall under the same jurisdiction. Alas, it is always a good idea to work with a CPA North Palm Beach Tax professional rather than a tax software who has expertise and experience dealing with such matters.
C. They own a real estate investment
Tax returns from rental income can get extremely messy. Different areas have different jurisdictions on how they treat income from rental property. There are area specific rules that govern how much deductible can be claimed from rental activities and how much depreciation a rental property attracts. It is highly advisable to seek a tax expert to get help in this matter, especially during the first year of rental, to maximize tax savings from rental income.
D. Major Life Changing Events
Huge life events such as getting married, having children, receiving an inheritance or even going through a divorce will alter your tax situation drastically. These major events can impact your filing status and the amount of deductions that you can claim, for example, having kids will allow you to claim more deduction while an inheritance or sudden windfall may attract unwanted tax on capital gains. That simply means more paperwork and attaching more forms to the return which can get cumbersome. It would be best to just leave it to the hands of tax professionals.
E. They are planning to send their kids to college
For those planning to do so, they must ensure that there is no unwanted assets or income in their children’s name as having that would diminish the child’s ability to receive grants and aids for tertiary education. Having a CPA to advise on such matters would be beneficial.
F. They made mistake on previous year tax returns
Most minor mistakes on tax return can be rectified by submitting an amended return using Form 1040-X. However, if the IRS catches the mistake and charges back taxes and worse still, audits the account, it can be a huge mess. If you had received a call from the IRS about crypto investments, the best course of action is simply to talk to a professional. The tax pros at CPO North Palm Beach agency can help confirm whether the IRS assessment is correct and represent you to respond to the audit query appropriately.
G. They want to save money on their tax returns
Tax filing is more art than science. While it is true that most people can just drop numbers into a tax filing software, having a qualified tax professional such as CPA North Palm Beach agency to look through your tax return numbers can make a lot of difference. They can analyze the situation, be on the lookout for further tax planning opportunities and help plan your tax return for next year depending on your personal circumstances. If the situation is more complicated, which is the case for most doctors, consulting a professional who understands the tax code inside out can result in some serious savings.
Engaging the service of CPA North Palm Beach in Florida is like having a trusted advisor in the doctor’s medical team. Hiring a professional can give you a peace of mind when the tax season comes around. They understand your unique situation and thus will be able to advise you on tax planning, deductions and also the relevant documents to submit to IRS. You can never go wrong with CPA North Palm Beach.