Tax Advice for
I can take the mystery out of the complex tax scenarios that arise for military families moving around the world. I am familiar with military tax issues, overseas orders, and handling past due and amended past year return issues.
I also have experience navigating tax situations specific to military spouse entrepreneurs running their own businesses.
COMMON MILITARY ISSUES
I will break these issues down to help you understand your tax situation.
State residency rules for tax purposes are complicated enough without moving every 2-3 years for the military. I will advise you on your income tax filing obligations in your state(s) of residency, including state filing obligations due to business income earned in non-resident states and part-year residency situations.
The Military Spouse Residency Relief Act is often misunderstood or misapplied. The Act was also recently amended on December 31, 2018 – the requirement that the servicemember and the spouse have the same domicile or home of record no longer applies if you meet the other two requirements of being stationed in the state on military orders and the spouse being in the state solely to accompany the servicemember. I can help you understand how the Act may apply to you, assist in determining your spouse residency under the Act for tax and employment purposes, and file the necessary state returns for you as part of your return preparation.
I can save you the headache of figuring your own self-employment taxes on Schedule SE and help you calculate quarterly estimated tax payments. Handling the interplay of all of the self-employed tax issues, including social security, Medicare, additional Medicare tax, and the applicability of deductions and the Earned Income Tax Credit, is challenging to say the least. And the penalties for underestimating the tax can be heavy.
I can assist in determining proper deductions for expenses related to rental properties, impact on your properties’ basis, depreciation schedules, and passive activity loss limitation issues.
As part of the 2017 Tax Cuts and Jobs Act, a new 20% qualified business income deduction is available for business owners and even individuals engaged in property rental activities. I can determine if the new deduction applies to you and advise you on how to meet the requirements for taking the deduction.
I can help you file late prior year returns and act as your representative in correspondence tax audits and responding to assessment notices.
I can provide advice and recommendations on the tax consequences of future transactions. I can also create tax planning scenarios for you based on expected changes in your financial or life circumstances.