Are State Taxes Deductible from Federal Taxes?

The short answer is yes. However, the complete answer is a bit more complicated. State taxes, personal property and real estate taxes are deductible if you itemize on your federal income tax returns. There are strategies that Encino Tax advisors can use to mitigate your tax obligations from year to year. Eligible Expenses Generally, income [...]

3 Steps to Calculate Your Federal Tax Rate

The US uses a progressive tax system, so you don’t pay federal income tax on your entire income. Instead, it’s divided into segments, known as tax brackets. There are seven different tax brackets, ranging from ten percent to 37%. Your filing status and taxable income dictates which tax bracket you are in and the tax [...]

What You Need to Know About Gift Taxes

Federal gift tax is applied to certain transfers of property from one individual to another person who is not his or her spouse. Gift tax is also charged at the state level in Connecticut and Minnesota. If you have given or received stocks, jewelry, cash, or other valuable property without an exchange of fair market [...]

What Is a Cash Flow Analysis?

A business cash flow analysis shows all the income and expenses for a specific time period, often the quarter or the year. Unlike the income statement, which records transactions when they occur, the cash flow analysis indicates that funds have actually been deposited or withdrawn from the company accounts. Encino accountant Wallace and Associates can [...]

What Does a Budget Analysis Do?

A budget analysis details the cash flow into and out of your business for a given time period, often a month. Conducting this type of study allows you to ensure that you have cash available when needed to make purchases and pay bills. Encino payroll and accounting firm Wallace & Associates can analyze your business [...]

Is There a Penalty for Being Audited?

Is There a Penalty for Being Audited? As a taxpayer, the last thing you want to receive from the IRS is an audit notice. This means a representative from the agency will do a thorough review of your tax records to determine whether you have underpaid. Although the audit itself does not carry a penalty, [...]

How To Set up Your Payroll Taxes

Your small business has expanded and it’s time to hire outside help for the first time. Before listing that job online, however, make sure you understand the ins and outs of payroll taxes. This advice from Encino accountant Wallace & Associates can help ensure you’re in compliance with federal, state, and local payroll laws. Understanding [...]

What You Need To Know About Tax Return Preparation

Too many people take the information on their W2s and use it to fill in the blanks on their annual tax return. While doing this makes tax preparation decidedly easy, it can actually result in huge losses. If you want to maximize your return, you need to know how your choices when it comes to [...]

Ready To Retire? What You Need To Know and How To Make Your Financial Decisions

Retirement is one of the final milestones that a person reaches in his or her life, preceded by becoming an adult, turning 21, landing a first “big person” job, getting married, buying a house, having children and becoming a grandparent. Yet, unlike any of the other milestones (save for getting married and buying a house), [...]

How To Report Foreign Bank Accounts

It is not unheard of for people with large amounts of wealth to hide their money in foreign bank accounts. In fact, the practice is so common that it is a recurrent theme in Hollywood films and TV shows. Hiding money in foreign accounts is illegal, which is why American citizens who have foreign accounts [...]