It's beginning to look a lot like year-end

It's getting real around our Alliance Financial & Income Tax, LLC offices these days.

Our busiest time of year is definitely during "tax season", but we are in our intense preparatory stage for it AND so are our (smarter) clients.

We have no complaints, and we love our clients ... but it does add some oomph to the holiday rush.

And one of the primary things we are helping with now are the rush of last-minute tax planning moves. Because as I've said before, preparing a tax return is a defensive, reactive task ... but making the right moves ahead of time is going on the offense, and it affects the future. You can still save, even now.

Which means I'd like that far better for you, John. 

I gave you some ideas last week, and here they are again:
 

• Making an additional mortgage payment (to add to the total you can deduct for mortgage interest)
• Adding to your 401(k) or other company-sponsored retirement plan
• Spending down your medical flexible spending account (FSA) balance
• Bunching deductible expenses, both miscellaneous and medical
• Maximizing the sales tax deduction with a tax-qualifying major purchase 
• Considering ways to defer income until January 1 if at all possible (unless you already know 2017 is going to be higher) 
• Giving to your favorite charity

Let us know if there's anything in there that piques your interest: (816) 220-2001

Now, there's a lot of talk these days about millennials, and how this generation might be a little different than those in the past. Well, I thought I'd pipe in for my millennial friends ... and perhaps others too.

Mike Mead's 
"Real World" Personal Strategy Note
The Millennial Career Trap
"We didn't lose the game; we just ran out of time."  -Vince Lombardi

Like me, you've probably heard: "Do what you love, and the money will follow!"

Hogwash.

Personally, I love lying on the beach, but unless I start looking like a supermodel, there's not much chance of my getting paid for it.

And, honestly, it breaks my heart to see so many mindlessly follow this advice, start to pursue a career driven exclusively from their "passion", and end up with broken dreams, bitterness towards the world and a deeper resistance to "starting" anything again. I've met with clients like this. I've seen the broken tax returns, the failed businesses, and worse.

That, to me, is the biggest crime, as it relates to those who spout this pabulum. Because I WANT people to follow their dreams. But (and this is the kicker), it needs to be something in which there is a realistic possibility of providing liveable (and beyond) income.

So, here's my "real world" take on how you should, instead, approach following your dreams....
 
Understand the desire under your desire. 
What you choose to do for a living should be based on what kind of life you want. If you dream of a life of luxury, a career as an artist (however much you love to draw) probably won't be very satisfying. But if your deepest desire is to be "true" to your giftings -- no matter the financial reward, then the income component only becomes something that must meet a minimum requirement. So, look for a strategy that will incorporate your interests while taking into account your TRUE lifestyle goals.

Learn your strengths. 
You may love playing the piano, but are you really good enough to make a living at it? Be honest and realistic with yourself before committing yourself to a career that could be filled with frustration. Best move here: get a real outside opinion, and commit yourself to responding to this kind of objective feedback.

Understand secondary requirements. 
Every job and career includes some tasks that are less enjoyable than others. After all, even movie stars have to deal with intrusive paparazzi; CEOs have to make tough decisions about layoffs and ethical dilemmas, etc. The point is that there are downsides to every dream career. EVERY ONE. Keep your eyes open to these.

Remember that work is still work. 
Your career has to carry you through days and weeks when you don't really want to go to the office, or the studio, or wherever your job takes you. This is part of being realistic about your goals: Even the best jobs can seem like drudgery at times, and you'll have to stick with it even when the initial enjoyment fades.
 
Last of all, let us help you plan the financial implications of your choices. Perhaps, we just start from the simple point of this upcoming year's tax return?

Until next week,
 
 
Mike Mead, EA, CTC
Alliance Financial & Income Tax
807 NW Vesper Street
Blue Springs, MO. 64015
P - 816-220-2001 x201
F - 816-220-2012

          

Selling Your Home and Tax Preparation

Selling Your Home and Tax Preparation

If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return. This exclusion is allowed each time that you sell your main home, but generally no more frequently than once every two years.

To be eligible for this exclusion, your home must have been owned by you and used as your main home for a period of at least two out of the five years prior to its sale. You also must not have excluded gain on another home sold during the two years before the current sale.

If you and your spouse file a joint return for the year of the sale, you can exclude the gain if either of you qualify for the exclusion. But both of you would have to meet the use test to claim the $500,000 maximum amount.

To exclude gain, a taxpayer must both own and use the home as a principal residence for two of the five years before the sale. The two years may consist of 24 full months or 730 days. Short absences, such as for a summer vacation, count as periods of use. Longer breaks, such as a one-year sabbatical, do not.

If you do not meet the ownership and use tests, you may be allowed to exclude a reduced maximum amount of the gain realized on the sale of your home if you sold your home due to health, a change in place of employment, or certain unforeseen circumstances. Unforeseen circumstances include, for example, divorce or legal separation, natural or man-made disaster resulting in a casualty to your home, or an involuntary conversion of your home.  

Our Blue Springs tax professionals are here to help you if you have any questions.  

The Difference Between Tax Planning and Tax Preparation

As 2016 is coming to a close and we are planning the holiday celebrations before you know it, many of us will turn our attention to taxes. After all, the IRS is expecting to hear from us by April 15th. You may have your trusted accountant taking care of the numbers for you or you’ve gone the DIY route and you’re using TurboTax or a similar program. You or your accountant is looking back over 2016, finding every possible way to maximize your deduction to minimize your tax liability. In a nutshell, this is tax preparation.

You’re looking for deductions related to property tax or mortgage expenses. Or if you had a significant amount of medical expenses, tallying more than 10 percent of your adjusted gross income, you may have yet another potential deduction. In many ways, a bulk of tax preparation is finding these deductions, which can add up to incredible savings for the year.

On the other hand, there is tax planning. Rather than looking back at the past year, tax planning involves looking forward five, 10, or 20 years. When you plan, you consider what you can do to keep your tax burden to a minimum, while positioning some of your savings to generate a tax-free income.

For example, if you had an additional $30,000 in income every year, but that income was taxed at the federal and state combined rate of 30 percent, you would be left with only $21,000. Through careful tax planning, you could change a loss of $9,000 into a gain.

That’s where we come in. We can show you how to take that additional income from taxable to tax free. Let’s go back the example of $30,000. When that amount is tax free, you get to keep that $9,000 you would have otherwise given to the state and federal government.

Now, you can use that money however you see fit. Use the tax savings to take your kids or grandkids to Disney World. Treat you and your spouse to a dream vacation. Or, continue to save. We would rather see you get the most out of your money and enjoy the money you worked hard to earn, rather than see it lost to unnecessary taxes.

Think about the long-term tax savings. If you’re generating $30,000 in additional income, over one year you can save $9,000. Over 10 years, that’s $90,000 in tax savings! In 20 years, it’s an incredible $180,000! And this is on top of your standard income.

If you’re interested in planning your tax future and you want to know how you can save, year after year, give us call at 816-220-2001. You can set up a 15-minute strategy session with myself. We’ll work with you to find the best solution for your tax situation, and we’ll even generate a report detailing what you can do to plan for your financial future.

Mike Mead

Enrolled Agent

Certified Tax Coach

Alliance Financial & Income Tax

807 NW Vesper St

Blue Springs, MO. 64015

Phone: 816-220-2001

WARNING:  IRS Audits Rapidly Increasing.  Are you confident your return is accurate?  Could you be missing credits and deductions?  Allow our Blue Springs income tax preparation firm insure your return is accurate and you are getting the maximum refund.

For Income Tax Preparation 

In Blue Springs and the Surrounding Areas

We are here to maximize it. 

Mike Mead of Alliance Financial & Income Tax is a Certified Tax Coach.

Tax Preparation Return Places Near Blue Springs

Finding Tax Return Places Near Blue Springs

It’s bad enough to have to prepare your taxes every year. It’s even worse when trying to find tax return places near me.

With today’s Internet driven economy, finding a physical storefront tax firm is not as important as just a few years ago. There are many top-notch tax professionals that are “tax return places near me”; in that they are internet-based firms that can service you from anywhere in the world irrespective of your location with the same attention to detail and quality preparation that you have come to expect in a local preparation that is near you.

Basic Preparation Choices For Tax Return Places Near Me

When selecting a tax return place near me, we recommend choosing a credentialed tax professional. That means:

• A Certified Public Accountant or CPA; however, not all CPAs specialize in tax preparation, so you’ll need to inquire.
• A National Tax Preparation Chain; all preparers will properly be registered with the IRS (they have obtained a PTIN) and have a taken a basic income tax course, but the experience level of the preparer that you will deal with will vary greatly and they are generally all seasonal employees. However, you will pay the same price for the return whether the tax preparer is knowledgeable and experiences or not.
• Enrolled Agent: Enrolled Agents (EA) focus on income taxes only and that is why they are recognized as “America’s Tax Experts”. They must pass a grueling tax exam and generally will need to have extensive experience in order to successfully pass the exam.

You’ll want to choose wisely because even when someone else prepares your return, you’re still legally and financially responsible for everything on it. So, when looking for tax return places near me, whether storefront or on the Internet, that they are reputable and experienced. Check out their reputation online, check with the Better Business Bureau, check the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to confirm the credentials of federal tax return preparers (all paid preparers must have a PTIN) and other resources to make sure that your tax return is prepared accurately and thoroughly.

Tax Firms In The Cloud – Tax Return Places Near Me 24/7 All Around The World

Today’s taxpayers want quality, reputable, efficient work at a reasonable rate and couldn’t care less about storefronts. All aspects of tax preparation can now be accomplished using safe and secure technology in a ‘cloud’ environment” providing you with the convenience of having your return prepared from the safety and convenience of your home. This provides you with many more options than if you were looking for a local storefront tax firm.

Our goal at Alliance Financial & Income Tax is to provide the best counsel, advocacy and personal service for our clients. We are not only Blue Springs tax preparation and representation experts, but strive to become valued business partners. Alliance Financial & Income Tax is committed to understanding our client’s unique needs; every tax situation is different and requires a personal approach in providing realistic and effective solutions.
If you would like a free 30-minute consultation to discuss your tax situation please contact us today.