Tax Guide

Clients who meet with their Tax Advisor well prepared get more for their money.  Time can then be spent assessing your tax situation and looking for ways to legally cut taxes.  What to prepare beforehand:

• List of all earnings:

  • W-2 Forms

  • Dividends

  • Interest

  • Net Income from Partnerships

  • Sub Chapter S Corp K-1 Statements

  • Self-employment Income

  • Rental Income

  • Tax Shelters

  • Miscellaneous Income

• A record of income, expense and loss items about which you are not sure

• Escrow or closing papers on any real estate you have purchased

• Copies of last two years tax returns (unless given to your tax advisor earlier)

• Amounts and dates of any estimated tax payments (State and Federal)

• List of all securities you have sold - show date of purchase, date of sale, cost and proceeds.  It is best to have confirmation slips on each transaction

• Compilation of items you KNOW you can deduct.  See our Itemized Deduction Checklist for more items you are able to deduct

• If you sold real estate, bring closing papers from original purchase, as well as, from the sale.  Also list any amounts you may have spent on improvements

An easy way to keep records is to establish a file envelope system.  establish a separate file or envelope for each category of income and expense.  Set up an additional one for items you are not sure about and another one for items you think are non-taxable or non-deductible.  At the end of the year, simply add up the items in each envelope.