"Our financial lives are far more complicated now"

  • Category: Blog
  • Published: Wednesday, 21 March 2018 14:35
  • Written by Super User
  • Hits: 104

 

 

 
Janet Killingsworth here. Not too long ago, members of Congress were saying the the NEW tax reform package would enable most American taxpayers to do their own taxes on a large postcard.

As we all know, this was not the case, even though more than 80% of Americans will see a reduction in what we pay in our own taxes beginning with 2018. And yes, the state of Georgia has also passed a reduction in income taxes. Yes, there was a time when most Americans could prepare their own taxes; however, each year the tax code becomes increasingly complex. It is imperative for tax professionals to stay current with the new and ever-expanding regulations.

CPAs and Enrolled Agents must have 40 hours of continuing professional education each year to respective titles. Killingsworth Spencer takes great pride in helping our clients understand the numbers behind what is put on their return. If you would like to experience a different kind of CPA firm, give us a call. Remember, this years filing deadline is Tuesday April 17th.

 

Have a safe week

 


 

ALLOW US TO DEMONSTRATE

 

HOW WE MIGHT BE ABLE TO HELP
YOU

 

 

 

TO SCHEDULE AN IN-PERSON MEETING 

 

 

 

 

 

 

CALL Lynn Spencer

 

(770) 552-8286

 

email @ This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

TO RECEIVE YOUR NO OBLIGATION 

 

CONSULTATION, 

 

 

 

We can schedule Saturday appointments if necessary

 

Appointments available between 11am and 4pm

 

 

 

(For more details see the following link)

 

 

http://www.killingsworthspencerllc.com/svcs_real.htm

How well do you know the firm who prepares your tax return?

  • Category: Blog
  • Published: Tuesday, 06 March 2018 15:03
  • Written by Super User
  • Hits: 137

 

 
Think for a moment what a CPA has on a client. In addition to social security numbers for the entire family, birth dates, income from all sources, bank account numbers, investment accounts and balances, we also have credit card information, and all filer's drivers' licenses.  We frequently have usernames and passwords into various financial accounts too. Vicki, a new client, came to our office prepared with her 2017 tax information as well as copies of her 2014, 2015, & 2016 tax returns.  We found a mistake in the 2016 tax return where the CPA did not include a Net Operating Loss.  We reviewed the 2015 and 2014 returns and discovered the CPA for those two years did not use depreciation on rental property.  Between the three year's returns, Vicki had lost $9,000 in tax refunds.  Killingsworth Spencer was able to help Vicki get the refunds she deserved. 
 
We are a great referral for your local family and friends who need a trusted and competent tax advisor and preparer.  After payroll, IT services and data protection is our largest expense. We value our client's information and are very diligent in making sure our clients to not leave money in Uncle Sam's hand in error.
 
 
Have a great week

ALLOW US TO DEMONSTRATE
HOW WE MIGHT BE ABLE TO HELP YOU
 
IF YOU LIKE WHAT YOU HEAR
WE WILL REVIEW YOUR DOCUMENTS
WITHOUT COST OR OBLIGATION
 
TO SCHEDULE AN IN-PERSON MEETING OR PHONE CALL
 
 
CALL Lynn Spencer
(770) 552-8286
email @ This email address is being protected from spambots. You need JavaScript enabled to view it.
 
TO RECEIVE YOUR NO OBLIGATION 
30 MINUTE CONSULTATION, 
 
We can schedule Saturday appointments if necessary
Appointments available between 10am and 4pm
 
(For more details see the following link)
 
11115 Houze Rd., Suite 100
Roswell, GA 30076
(770) 552-8286
www.killingsworthcpa.com

"Unearned income can be taxed at 37%"

  • Category: Blog
  • Published: Friday, 02 February 2018 17:59
  • Written by Super User
  • Hits: 204
 
Congress first enacted the so-called Kiddie Tax rules as part of the 1986 tax reform. Yes, ancient history but the reason given was to prevent parents and grandparents who were in high income tax brackets from shifting income (especially from investments) to children and grandchildren who were in a lower tax bracket. Congress revamped this tax under the new Tax Act (TCJA).
 
Hello again, Lynn Spencer here. The Kiddie Tax remains in place, but the rate structure has changed effective January 1st, 2018 and sunsets at the end of 2025. The TCJA now taxes a portion of a child's net unearned income at the rates paid by trusts and estates - which can be as high as 37%. For long-term capital gains and qualified dividends, the rates can be as high as 20%, plus you must also add in the state income tax rate. Please note that this "Kiddie Tax" does not apply to children who work a part time job and have EARNED income from wages and tips. There are generally four rules that apply to children through age 24 regarding the Kiddie Tax.
 
If your child or grandchild expects to have in excess of $2,550 in UN-EARNED income in 2018, the tax law here is complex. Call Killingsworth Spencer in Roswell to have a CPA look into your particular situation to determine the effects and to strategize to reduce the kiddie tax.   
 
Have a great week

ALLOW US TO DEMONSTRATE
HOW WE MIGHT BE ABLE TO HELP YOU
 
IF YOU LIKE WHAT YOU HEAR
WE WILL REVIEW YOUR DOCUMENTS
WITHOUT COST OR OBLIGATION
 
TO SCHEDULE AN IN-PERSON MEETING OR PHONE CALL
 
 
CALL Lynn Spencer
(770) 552-8286
email @ This email address is being protected from spambots. You need JavaScript enabled to view it.
 
TO RECEIVE YOUR NO OBLIGATION 
30 MINUTE CONSULTATION, 
 
We can schedule Saturday appointments if necessary
Appointments available between 1pm and 4pm
 
(For more details see the following link)
 
11115 Houze Rd., Suite 100
Roswell, GA 30076
(770) 552-8286
www.killingsworthcpa.com
See what's happening on our social sites
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"Backdoor Roth IRA contributions are indeed legal"

  • Category: Blog
  • Published: Tuesday, 13 February 2018 12:28
  • Written by Super User
  • Hits: 185

 

The terminology may seem a bit underhanded, but this is a way for taxpayers to put money into a Roth IRA who may not otherwise do so, and yes, it is 100% legal. Hello again, Lynn Spencer here. Today I wanted to share how Backdoor Roth IRA contributions are becoming a popular financial tool to save more money towards your retirement.
 
If your Modified Adjusted Gross Income (MAGI) exceeds $135,000 (single) and $199,000 (married filing joint) or you are a widow(er) for 2018, you are NOT permitted to contribute to a Roth IRA - unless it's through the Backdoor. Just so we are clear on a few important points, a Roth IRA is a retirement savings plan where "after tax" contributions are made, assets grow tax free, and then upon your retirement, distributions are also tax free. In addition, distributions are not subject to RMD's or Required Minimum Distributions. Stop for a moment and think how valuable an investment could become in your lifetime if you never again had to pay taxes. This is a big reason why Roth IRA's have become so popular, and you can pass them down to a future generation (but they must begin taking RMD's by Dec 31st of the year following your death).
 
The way a Backdoor contribution works is that you and or your spouse contribute $5,500 each on an AFTER-TAX basis to an IRA ($6,500 each if you are age 50 or over). You must then wait a couple of days and then roll over the money to your Roth IRA. If your MAGI income exceeds the amount stated above, the only way to roll over to a Backdoor Roth IRA is if you are a participant in an Employer sponsored retirement plan such as a 401(k) or 403(b). 
 
At Killingsworth Spencer we help our clients understand the complex and often misunderstood nuances of the tax code to help improve their lives. We work in concert with your financial advisor to help you get the most out of what you work so hard to accomplish. When you need to understand complex tax ideas, be sure to give us a call.
 
Have a great week

ALLOW US TO DEMONSTRATE
HOW WE MIGHT BE ABLE TO HELP YOU
 
TO SCHEDULE AN IN-PERSON MEETING OR PHONE CALL
 
 
CALL Lynn Spencer
(770) 552-8286
email @ This email address is being protected from spambots. You need JavaScript enabled to view it.
 
TO RECEIVE YOUR NO OBLIGATION 
30 MINUTE CONSULTATION, 
 
We can schedule Saturday appointments if necessary
Appointments available between 1pm and 4pm
 
(For more details see the following link)
 

"HELOC interest is STILL deductible"

  • Category: Blog
  • Published: Monday, 29 January 2018 18:09
  • Written by Super User
  • Hits: 200
 
 
You may have heard radio advertisements that Home Equity Lines of Credit (HELOCs) are no longer deductible after 12/31/17 as a result of the new tax law. The announcer says that you should roll up your HELOC into your current debt and refinance your new mortgage now. Hello again, Lynn Spencer here; today I want to discuss why it may not be advantageous for you to refinance as the ads suggest. Interest expense from HELOCs IS still deductible for home improvements up to $100,000 or for the funds necessary to purchase another home. The final regulations should be out this summer on the question whether you can deduct HELOC interest for the purchase of an investment property. It will be necessary from now on to track what the HELOC loan was for (even if prior to 12/31/17) so that you may continue to claim the interest deduction. In case you are not clear, HELOC interest is no longer deductible for vacations, tax payments, car loans, personal expenses and the like.
 
At Killingsworth Spencer in Roswell, we are here year round to provide expert tax advice. If you have any questions concerning your HELOC, give one of our CPAs a call or click the Hyperlink below to learn more about how we can help to make your financial life easier to understand.

Have a great week

ALLOW US TO DEMONSTRATE
HOW WE MIGHT BE ABLE TO HELP YOU
 
IF YOU LIKE WHAT YOU HEAR
WE WILL REVIEW YOUR DOCUMENTS
WITHOUT COST OR OBLIGATION
AND THEN PROVIDE YOU WITH
A WRITTEN OVERVIEW OF OUR FINDINGS
 
TO SCHEDULE AN IN-PERSON MEETING OR PHONE CALL
 
 
CALL Lynn Spencer
(770) 552-8286
email @ This email address is being protected from spambots. You need JavaScript enabled to view it.
 
TO RECEIVE YOUR NO OBLIGATION 
30 MINUTE CONSULTATION, 
 
We can schedule Saturday appointments if necessary
Appointments available between 1pm and 4pm
 
(For more details see the following link)
 
11115 Houze Rd., Suite 100
Roswell, GA 30076
(770) 552-8286
www.killingsworthcpa.com
See what's happening on our social sites
Facebook
Twitter
LinkedIn
Pinterest

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