You know that long list of ways that the coronavirus has affected our lives? Well, here’s another one. The Internal Revenue Service has completely flipped a switch on its priorities, and it is not even looking at paper tax returns that are being sent to it. The idea of all those envelopes piling up somewhere is a bit mind-boggling, but it’s apparently what’s happening as the Treasury Department focuses on generating the stimulus checks that American taxpayers need to get through the crisis.
If you don’t owe the IRS money and you’re not looking to amend a previously filed tax return, this shift won’t mean much to you. You can rest easy knowing that the tax return and payments that would have been due in April are now not due until July 15th. But if you were hoping to get a refund from a previous year’s return via a return you amended (or need to amend), or if you owe the IRS money, you need to pay attention.
For the first of these two categories – the folks with amended returns – what you need to know is that you’re not likely to see any kind of response for quite a while. There’s no way to find out what the status is and the agency is pointedly advising people not to interpret the lack of response as a need to send in a new one. Doing so would just confuse things more. You need to sit tight.
If, however, you owe the IRS money from before the crisis occurred, there are no breaks on the penalties and interest that are stacking up. It may take the agency a while to get around to figuring it out, but if you decide to sit and wait ‘til you hear from them, you’re going to be in for a big shock. Your liability is not only still there, it’s adding on interest from the time that it was due. This is true on amended returns that reflect a liability as well.
In a word – it could add up to a lot. Not only do you owe the original amount, you are also subject to accruing interest and a failure-to-pay penalty of 0.5% of your original liability for each month (or partial month) that it hasn’t been paid. That can rack up to 25% of the liability. There’s also a penalty if you failed to file on time, and that can add up to another 5% of the amount that you owe each month. Even if you can’t afford to pay your entire liability all at once, you’re much better off paying small parts over time than waiting and having all of that interest added to your debt. You can contact the IRS online to arrange for one of their installment agreements.
Remember that mountain of returns piling up somewhere? Keep that in mind when you’re ready to send the IRS your money. If you write a check it’s going to just sit there, and your interest is going to keep adding up. Opt for paying electronically via direct payment. Don’t worry about the fact that the paperwork is sitting in that big pile. The agency will eventually get around to going through it, and they’ll figure out which payment goes with which amended return.
If you have any questions about your old tax bills or current IRS operations, please call us at 916.488.5900.
The IRS notice clarifies that employers who have received or are awaiting a PPP loan may take advantage of the CARES Act provision that allows them to defer paying the employer portion of social security payroll taxes effective March 27, 2020 and extending until their PPP loan is forgiven. Instead of paying these taxes when currently due, employers electing to defer will pay their portion of social security payroll taxes in two equal installments, with the first due December 31, 2021 and the second due December 31, 2022.
If you have questions concerning your company’s eligibility for or participation in PPP, contact your Yoder & Co. accountant today.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. In addition to funding the health care fight against the novel coronavirus (COVID-19), the roughly $2 trillion legislation provides much-needed financial relief to individuals, businesses, not-for-profit organizations, and state and local governments during the pandemic. Here are some of the key provisions for individuals and businesses.
The CARES Act provides one-time direct Economic Impact Payments of up to $1,200 for single filers or heads of households; married couples filing jointly can receive up to $2,400. An additional payment of up to $500 is available for each qualifying child under age 17.
Economic Impact Payments are subject to phaseout thresholds based on adjusted gross income (AGI). The phaseouts begin at $75,000 for singles, $112,500 for heads of household and $150,000 for married couples.
The payments are phased out by $5 for every $100 of AGI above the thresholds. For example, the payment for a married couple with no children is completely phased out when AGI exceeds $198,000. The payment for a head of household with one child is completely phased out when AGI exceeds $146,500. And, for a single filer, it’s completely phased out when AGI exceeds $99,000.
The CARES Act creates a new payroll tax credit for employers that pay wages when:
•Their operations are partially or fully suspended because of certain government orders related to the COVID-19 pandemic, or
•Their gross receipts have declined by more than 50% compared to the same quarter in the prior year.
Eligible employers may claim a 50% refundable payroll tax credit on wages paid (including health insurance benefits) of up to $10,000 that are paid or incurred from March 13, 2020, through December 31, 2020.
For employers who had an average number of full-time employees in 2019 of 100 or fewer, all employee wages are eligible, regardless of whether the employee is furloughed. For employers who had a larger average number of full-time employees in 2019, only the wages of employees who are furloughed or face reduced hours as a result of their employers’ closure or reduced gross receipts are eligible for the credit.
Be aware that additional rules and restrictions apply.
This $349 billion loan program — administered by the Small Business Administration (SBA) — is intended to help U.S. employers keep workers on their payrolls. To potentially qualify, you must have fewer than 500 full- or part-time employees. PPP loans can be as large as $10 million. But most organizations will receive smaller amounts — generally a maximum of 2.5 times their average monthly payroll costs.
If you receive a loan through the program, proceeds may be used only for paying certain expenses, generally:
•Payroll (including benefits),
Perhaps the most reassuring aspect of PPP loans is that they can be forgiven — so long as you follow the rules. And many rules and limits apply. Because of the limited funds available, if you could qualify, you should apply as soon as possible.
The CARES Act expands business access to capital in additional ways. Many of the other loan programs are also being administered by the Small Business Administration (SBA).
The CARES Act rolls back several revenue-generating provisions of the Tax Cuts and Jobs Act (TCJA). This will help free up cash for some individuals and businesses during the COVID-19 crisis.
The new law temporarily scales back TCJA deduction limitations on:
•Net operating losses (NOLs),
•Business tax losses sustained by individuals,
•Business interest expense, and
•Certain itemized charitable deductions by individuals and charitable deductions for corporations.
The new law also accelerates the recovery of credits for prior-year corporate alternative minimum tax (AMT) liability.
Significant for the hard-hit restaurant and retail sectors, the CARES Act also fixes a TCJA drafting error for real estate qualified improvement property (QIP). Congress originally intended to permanently install a 15-year depreciation period for QIP, making it eligible for first-year bonus depreciation in tax years after the TCJA took effect. Unfortunately, due to a drafting glitch, QIP wasn’t added to the list of property with a 15-year depreciation period — instead, it was left subject to a 39-year depreciation period. The CARES Act retroactively corrects this mistake and allows you to choose between first-year bonus depreciation and 15-year depreciation for QIP expenditures.
The financial relief package under the CARES Act also includes provisions to:
•Significantly expand unemployment benefits for workers,
•Allow IRA owners and qualified retirement plan participants under age 59 ½ who suffer certain adverse effects due to the COVID-19 pandemic to withdraw in 2020 up to $100,000 and then recontribute the withdrawn amount within three years with no federal income tax consequences,
•Waive required minimum distributions (RMDs) from IRAs and retirement plans that would otherwise have to be taken in 2020 to avoid an expensive penalty,
•Provide an above-the-line charitable deduction of up to $300, generally for 2020 cash contributions to qualified charities, and
•Exclude from an employee’s taxable income up to $5,250 of employer payments made on the employee’s student loans from the date of the CARES Act’s enactment through December 31, 2020.
•The CARES Act also allows employers to defer their portion of payments of Social Security payroll taxes through the end of 2020 (with similar relief provided to self-employed individuals).
Keep in mind that additional guidance could be released — or new legislation could be signed into law — that could affect these CARES Act provisions. And more relief measures may be forthcoming.
The COVID-19 pandemic has affected every household and business in some way. If you have suffered financial losses, contact us to discuss resources that may be available to help you weather this unprecedented storm.
Yoder & Co., CPA provides income tax preparation services in Sacramento, CA for individuals, businesses, nonprofit organizations, and fiduciary entities such as trusts. They also represent clients before the IRS or state taxing authoriities when subject to a tax audit. Tax planning is another part of the tax services provided, making them a one-stop shop for all your tax requirements.
It’s not a stretch of the imagination to estimate that there are thousands of accountants in Sacramento, CA and the surrounding area. However, accounting is much like any other profession in that some firms and accountants are inherently better at their jobs than others. Don’t you want the best person for the job when it comes to dealing with something as important as your money? Here are a few questions to ask an accountant before you ask him or her handle your finances:
We want you to choose the best person to handle all of your finances and take care of your taxes. We’re confident that all of our accountants in Sacramento, CA can do a superb job. Give Yoder & Co., CPA a call today to set up an appointment with one of our professionals. We’re happy to answer any of the above questions, as well as any others you may think of, and we look forward to assisting you soon!
Most people work all their lives to reach the moment when they can finally walk out of the office for the last time and start living a life of leisure. The question is, will you be ready for retirement when the time comes? Without proper retirement planning in Sacramento, CA, the answer could be “no.” Here are a few things to consider before you hand in your retirement papers to the human resources director at your office:
Ernest Hemingway is believed to have said, “‘Retirement’ is the ugliest word in the language.” Only the retirees can tell us if that’s true! We want everyone to be knowledgeable about retirement so they can prove whether or not Hemingway was right. Give Yoder & Co., CPA a call today to get started with your retirement planning in Sacramento, CA!
Have you done your taxes yourself? Did you notice an error after you filed? Don’t let the panic set in, as you can get help from a CPA in Sacramento, CA. They can help you file the correct forms to begin the process of amending your taxes, even if you initially filed them on your own.
Filing IRS form 1040X to fix an error
By working with a CPA in Sacramento, CA, you will be able to send the necessary paperwork to the IRS that includes form 1040X. This will help you make the necessary adjustments to your tax return and allow you to breathe a sigh of relief knowing your return is now correct.
When you notice an error in your taxes, it is important not to wait and see whether the IRS catches it. This can make matters worse and end up costing you more. While you have three years to file an amendment to your taxes, penalties and interest start accruing the day after the required filing date. A CPA in Sacramento, CA can assist you in finding the error and make sure your form 1040X gets to the IRS as soon as possible.
If you are due a return from the error, form 1040X will allow you to collect this through your amended filing. If you owe taxes based on the error, it is important to fix this right away to prevent additional interest and penalties from adding up. A CPA will be able to review your tax return and make sure it is accurate when you file your amendment, and help you understand what is owed or what will be refunded to you.
Enlist the help of a CPA
If you have completed your tax return yourself, you can still enlist a CPA to help with any errors that have occurred. A CPA in Sacramento, CA is experienced in handling all sorts of tax return problems and will be able to identify where yours went wrong and make the adjustments necessary to fix the errors.
You shouldn’t feel embarrassed or too proud to enlist the help of a CPA after you have attempted to do your own taxes. It is more important to get errors fixed properly and quickly so you don’t have any issues with the IRS moving forward. Plus, CPAs see all sorts of tax return issues, and yours will not come as a surprise to them or be something they can’t handle.
Working with a CPA in Sacramento, CA can help you solve a tax return problem with ease. Your tax return will be amended to fix the error and alleviate any further problems with the IRS that you might have. Have your tax return errors fixed by Yoder & Co., CPA. We are a full service accounting firm with a strong reputation for helping our clients with all of their tax needs. Contact us today to schedule an appointment and get your tax return underway—we look forward to assisting you!
With the end of the year comes tax time, and tax preparation in Sacramento, CA needs to be on your mind. Every year there are changes to the tax laws, and this year is no different. How informed are you? Do you know which new tax laws apply to your situation, and how you can make the most of them when you file your return? A tax professional can help you understand the new tax laws and prepare your taxes for you so you’re faced with the lowest possible tax burden.
Work with a CPA to understand the new tax laws
Several new tax laws have come into play for 2016, including changes to penalties for the Affordable Care Act and personal exemptions. Don’t take a guess on what these new laws mean for you. A CPA is experienced in dealing with these regulations and will have the best understanding of how these laws can impact your tax filing.
It can be tempting to try and do your taxes on your own, but you are taking a risk that you will make a mistake and miss an important exemption that you could have easily enjoyed. With professional tax preparation in Sacramento, CA, you leave the worry to the CPA, as it is their job to stay abreast of the current tax laws and how they affect you.
With your tax preparation in Sacramento, CA, you will be getting all the knowledge and expertise that a CPA has gained in preparing numerous tax returns each year. They guarantee their accuracy and can make sure you are able to take the most exemptions possible when filing your taxes.
Other tax law changes
This year also brings an unusual tax filing date that you might not be aware of. Instead of the standard April 15 due date, taxes are due on April 18, 2017 for the 2016 filing year, to account for the weekend. Changes such as these are something that your CPA certainly knows and will be able to inform you about when you have your tax preparation in Sacramento, CA done by a pro.
The earned income tax credit has also changed for this year, and not knowing this can cost you on your return and make it inaccurate. Not being aware of these important changes can impact your filing, and can maybe mean a difference of hundreds or even thousands of dollars when it comes to your return. Trust in a CPA to file your return correctly and in line with the new tax laws that have been put into effect for this year.
There is a myriad of tax laws that have changed for 2016 that can impact your tax return filing. With professional tax preparation in Sacramento, CA, you take the guesswork out of the process and ensure you have a tax return that is accurate and up to date. To have your taxes done by a CPA, contact Yoder & Co., CPA. We provide an array of accounting services, from tax management to estate and trust oversight and payroll for individuals, businesses and organizations. Call us today to schedule an appointment!
Believe it or not, it’s that time of year again when you need to start thinking about filing your taxes. Time really flies, doesn’t it? Once again you’ll need to figure out how you’re going to go about filing. You could take the DIY approach and buy a computer program that’s supposed to make the process easy to do alone. A better approach, however, is to bring all of your papers to a CPA in Sacramento, CA and let the pros handle your taxes. Here are a couple of reasons to do this:
Don’t risk missing out on any deductions or running into problems with the IRS this tax season. Yoder & Co., CPA is your source for an accurate CPA in Sacramento, CA. Call us today to schedule an appointment with one of our tax pros.
It’s never too early to begin preparing your taxes for next year. Waiting until the last minute to file your taxes can be super stressful for you and your accountant. As an added bonus, the earlier you bring all of your papers in to your CPA, the more quickly your accountant will be able to get your refund back to you. Keep in mind, however, that dropping all of your papers off on an accountant’s desk doesn’t mean you’ve properly prepared your taxes. Here are a few of the steps you can take for more productive tax preparation in Sacramento, CA:
Getting all of this information together will make your CPA’s life a lot easier, and can end up saving you money in the long run. Start your tax preparation in Sacramento, CA today by giving the professional accountants at Yoder & Co., CPA a call to schedule a consultation!
Filing taxes every year is not everyone’s cup of tea. Reasons for this can vary, yet unpreparedness and plain old not understanding the tax process are typical responses. But suffer no more, because luckily for you, there are professional tax services out there—like Yoder & Co., CPA—who are ready and willing to give you a helping hand this tax season and beyond. No matter what, it’s important that you know a little about your taxes. To get started, let’s take a look at some frequently asked questions concerning tax preparation in Sacramento, CA.
What documents do I need to keep to do my taxes?
Whether you are planning on filing your own taxes or hiring a CPA, there are a number of documents you will need to have in your possession come tax time. This includes detailed records of your income, expenses and any other individual or small business information you typically divulge on your yearly tax returns. In the event you’ve gone through a major life change—like a death, birth, adoption or real estate purchase—it’s a good idea to keep these records on hand should you need to document additional information on your taxes.
A good record keeping system can make doing your taxes a bit less stressful, and having the proper financial information in front of you can even save you money. Moreover, these records will prove beneficial in case you are audited.
What pieces of paper should I hang onto throughout the year?
For the current tax year, you need to hang onto any papers regarding your income and deductible expenses. As mentioned above, these are the types of records that will help you should the IRS send an auditor to knock on your door. There are quite a few relevant tax records and receipts, particularly related your income—this includes your total wages, interest, dividends and oftentimes health account contributions. If filing jointly, you will also need your spouse’s income information. Examples of other records to keep are medical expenses, charitable donations, business expenses and deductible education costs.
Are there any other types of tax records I should keep?
Yes! You need to write out detailed and accurate records for the things you acquire or buy or do that are worth a pretty penny. Keep these tax records and receipts to prove how much you paid for something you are liable to sell later on:
If you are invested in working with a professional service for your individual or small business tax preparation in Sacramento, CA, don’t hesitate to contact the skilled and knowledgeable team at Yoder & Co., CPA. Give us a call today!
Owning your own small business is a great feeling, and if you’re like many others, these feelings are likely to present as personal strength, confidence and independence. There’s no doubt that every aspect of your business is important but, for several reasons, your business’ finances should be at the top of your most watched list. So, while you could hire a person who’s good with numbers, the truth is that he or she may not be an actual small business accountant with the knowledge to guarantee a stress-free tax time.
Think it’s time to hire a pro? Don’t wait—there’s no time like the present to seek out a professional certified public accountant! To help you with your search, here are some of the most common mistakes to avoid as a small business owner when looking for a CPA in Sacramento, CA.
Hiring the first accountant you meet
Indeed, you may like everything about the first accountant you interview. Their personality matches your own, they’ve presented themselves well and they have accounting experience. But do they have the right kind of tax and accounting experience for your particular type of business? Recording small business bookkeeping information and maintaining expense reports requires a keen eye, and it’s different from doing individual finances. So, if they have the right qualifications to work as an accountant, but don’t possess the necessary knowledge about the industry you are in or even about small business accounting in general, you will want to interview others.
Not writing down your business’ needs
As a small business owner, you are either meticulous about noting every aspect of your daily business operations or you lack the bug for caring about detail. Whichever describes you, it’s crucial that you get organized and write down your business’ needs before heading off to the hiring process. If you’re the less detailed-oriented type, get other team members to help you out. At the top of your interview notes should be questions pertaining to your business and industry, as well as questions that will give you a better understanding of a CPA’s knowledge in the area of small business finances.
Thinking you can do some or all of the finances
There are three likely scenarios here: 1) You let a current employee who is somewhat finance-savvy take on the responsibility, 2) you think you can do all of the business finances yourself or 3) you assume you’ll have the time to cram in financial record-keeping in between your other million responsibilities. If you think not having to hire a professional CPA in Sacramento, CA will save your business money, you may want to think again. While doing the finances yourself may save money in the short term, doing so can show a loss in the long run, as well as unintentionally reporting the wrong tax information.
For your business to succeed now and remain firmly in the game for a long time, you must take your business’ finances seriously—even if that means bringing someone in to help. Contact the team at Yoder & Co., CPA to speak with a qualified CPA in Sacramento, CA today!
The holidays are just around the corner, which means that between presents, parties and more, you are likely either excited and ready or scared about going broke. With that in mind, it’s important to learn how to protect your financial future with holiday spending tips from your trusted CPA in Sacramento, CA:
If you need a CPA in Sacramento, CA to help you out this holiday season and year round, don’t hesitate to give us a call at Yoder & Co., CPA. We’re here for you!
Although talking about big life changes with your spouse or family is a must, there’s another person you should plan on talking to: your personal accountant. This is a good thing considering there’s a lot that goes on with your finances. When you sit down with your CPA to discuss potential changes to your financial life, they will undoubtedly remind you that your decision also hinges on family considerations and how things are going in the larger economy.
With this in mind, here are five individual career decisions that professional accountants in Sacramento, CA can help you with:
Should you ever end up with a difficult career decision on your plate, you can look to certified accountants in Sacramento, CA to offer a helping hand. Contact the tax professionals at Yoder & Co., CPA today!
When it comes time to prepare your small business taxes, you need all the help you can get, from understanding what a business expense is and what counts toward it. Did you know that you can write off your taxes as a business purchase? Accountants in Sacramento, CA can help you understand the practice and get you prepared for your next tax return filing.
Writing off your tax services
Using accountants in Sacramento, CA for your tax return preparation can be an expense that small businesses have to incur in order to stay in business. They can help you navigate the federal tax regulations and make sure you are staying compliant, while still getting the most benefit from your tax filing as possible.
If you use accountants in Sacramento, CA for your small business tax preparation, in most instances, it is fully deductible, making it an expense that is easier to digest. You can deduct the tax services that you use in the same year that you pay for them. This means that you can write off the tax preparation costs in the same year you use them, giving you an incentive to go with a tax service to have your small business taxes completed.
As a small business, you are most likely itemizing your deductions, as you will have a number of expenditures that you can write off. You are able to claim your accounting fees as one of these itemized deductions as part of your income tax filing. Accountants in Sacramento, CA will know how to prepare your small business income taxes so your return includes your tax preparation fees as part of your yearly deductions.
Keeping accurate records
While you most likely are using an accounting service to have your small business taxes prepared, in order to ensure you can write off this service, you need to have records that you actually obtained this work for your small business. Keeping good records is key to your tax preparation, and you need to hang on to all receipts related to your small business expenses. An accounting firm will be able to provide you a receipt for the services they completed for your business taxes. Just be sure to hang onto it in case you are ever audited, as you will then have a record of what you claimed on your taxes and filed as part of your tax return.
There is no limit to the amount you can write off on your taxes for accounting services, making it a wise investment to go with accountants in Sacramento, CA for your tax preparation. When you need accounting or tax services, contact Yoder & Co., CPA. We offer a range of tax services for individuals and businesses, both big and small. From federal and state returns to employee benefit plan taxation, we can ensure you are provided with accurate tax filings and answer any questions you might have about your taxes or accounting needs. Get in touch with us to schedule a consultation.
When you need tax services, it’s good to know that you can count on a business like Yoder & Co., CPA for everything you need. We offer a variety of different tax preparations in Sacramento, CA for both individuals and businesses, making us a one-stop shop for all your tax requirements. Our services range from general tax preparation to more complicated services like estates and trusts. Whatever you are looking for, Yoder & Co., CPA offers it:
When you or your business is in need of tax preparation in Sacramento, CA, be sure to contact Yoder & Co., CPA to help you with the process. We are an experienced and knowledgeable accounting firm dedicated to our clients, whether they are individuals, corporations or small businesses. Give us a call today to learn more about what we can offer you!
In this job market, a college degree is vital to landing a well paying and secure job. Because of this, many parents are already worrying about how they will pay for their child’s college education years from now. College is expensive and the price tag is only increasing. Many graduates are finding themselves drowning in thousands of dollars of student loans.
As a parent, you want your child to enter the job market on their best standing without being weighed down by financial burden. Fortunately, your certified public accountant in Sacramento, CA can help you take the proper steps to help you start saving for your son or daughters college education. By saving money while your child grows up, you’ll have the peace of mind knowing your kids have a financial cushion when it comes time to pick a university.
Start saving early
Saving for college is probably the last thing you’re thinking about while holding your newborn baby. Saving for college is something you should begin thinking about relatively early in your child’s life. Think about it this way—the earlier you start, the more money you will have tucked away when it’s time for the first tuition payment. Meet with your certified public accountant in Sacramento, CA to determine how much money you’ll ideally need by the time your son or daughter turns 18. Then your accountant will help you calculate how much money you will need to save each month to reach that amount.
One major benefit of saving early means that you have time to determine which saving plan works best for you. While there are a variety of options, each savings plan offers different benefits. California residents can take advantage of a 529 plan, which works to help families better plan for future education costs. Another option to consider is an education savings account. This type of plan allows you to contribute up to $2,000 annually. While that might not seem like much, if you start contributing the maximum amount after your child is born you’ll have $36,000 by the time they’re 18! As an added bonus, all withdrawals are tax free. Still unsure which option is best for you? Then consult a certified public accountant to determine whether a 529 plan, educations savings account or another option entirely is best suited for your college savings goals.
Consider other options
You do not have to bear the entire financial burden of your child’s college education as there are many other options. Many universities offer a variety of scholarship and financial aid options based on educational qualifications, talent and need. Your child can begin applying for these in their early teenage years. Once you have a sense of how much outside funding you’ll be able to take advantage of, meet with your CPA at Yoder & Co., CPA. Our team of qualified professionals will help you find a way to pay for college without struggling—whether that means turning to student loans or savings. Contact us today to get started!
For many people, the thought of hiring a certified public accountant isn’t even considered until tax season rolls around. But accountants don’t just sit around waiting for tax season—their work is quite important throughout the entire year.
Accountants are heavily involved in a variety of industries, including healthcare, real estate, construction and even individual non-business needs. A CPA can help you with everything from tax preparation and auditing to financial planning. Unlike an accountant, a CPA has earned the title through extensive education, licensing and experience. Even the most financially savvy people can benefit from the work of an accountant.
Here are just a few ways a certified public accountant in Sacramento, CA can benefit you and your small business—even outside of tax season:
Personal financial planning
Any family can benefit tremendously from having a CPA take a look at their financial state. A trained CPA can help you and your loved ones plan for the future by helping you determine the best decisions when it comes to planning for retirement, saving for college, interpreting your benefits or when weighing a major career decision. A professional will build a close client relationship that adds long-term value. Your CPA will help you identify the best decisions for both you and your loved ones.
Operating a small business can be intimidating. Most business owners do not enter their chosen industry with a degree in accounting. Luckily for you, a CPA can help you navigate your way through complicated tax terms and assist in planning for future needs of the business. Most CPA’s recommend meeting periodically to assess your company strategy. This way you’ll know what challenges to anticipate before they compromise your business.
A CPA can also assist with building a budget, increasing profitability and identifying areas where costs can be reduced. Any business owner knows these aspects are crucial to running a successful business. So stop worrying about managing the budget and shift your focus to what really matters when it comes to your business by hiring a CPA.
Tax management can be incredibly complicated. With tax laws changing sporadically, it can be difficult for any business or home owner to keep up with all the new rules. A CPA can help you navigate the complicated world of taxes. By meeting regularly with your CPA, they can help you minimize taxes and avoid steep penalties.
But smart tax planning isn’t something that can be done two weeks before your taxes are due. Ensuring you are able to hang on to your hard earned cash entails communicating regularly with your CPA about any changes in marital status, new loans, buying a home or new incomes. This way, filing your taxes will be a breeze once April rolls around!
Ready to begin growing and retaining your wealth? Contact the experienced professionals at Yoder & Co. today.
Money is a dicey subject, so much so that trusting an outside person to manage it may be a hard thing for you to do. Whether you need assistance planning for the future or could use a hand preparing your taxes, working with a professional is a great option to avoid unnecessary financial issues. Make this the year you stop struggling through the numbers on your own! With that in mind, here are five strategies you can use to find the right CPA in Sacramento, CA for your specific financial needs:
The mere thought of having to handle taxes or look into financial planning can send even the calmest person into a tailspin. But you don’t have to go it alone. When the time is right and you’re ready to entrust your accounting needs to a professional, give us a call at Yoder & Co., CPA to begin working with a CPA in Sacramento, CA.
As much as we would like to have complete and total control over everything that happens in our lives, that’s just not how the world works. But that’s not to say we can’t keep some amount of control over certain aspects of life. So, while we can choose to buy a house or start a business, what we can’t control are happenings like the death of a loved one or needing to care for an aging parent.
As your life changes, what you can and cannot claim on your taxes is likely to shift. Let’s take a look as some major life events that will impact your tax planning in Sacramento, CA:
Have you experienced a major event in your life? Anything that presents itself as a change that requires you to do your taxes a little bit differently than before can be intimidating and confusing. For help with tax planning in Sacramento, CA, contact the professionals at Yoder & Co., CPA today.
If you and your family are beginning the estate planning process in Sacramento, CA, you may find yourself putting together a will. You’re on the right track, as there are a number of reasons that having a will is essential. Taking the time to get some very important questions in order with proper answers is something everyone and anyone needs to consider at some point in their life.
A will dictates who will receive your property after your death and who will take care of your children, if you have them, after you die. Making a will ensures that your loved ones are provided for according to your desires and that these details about how they will be taken care of are presented in a very clear and specific fashion.
Before you begin contemplating the contents of your will, it’s important to understand the three legally recognized types of wills. The following details should be used for general informational purposes, as you—and your estate planning professional—should also take a look at your particular state’s laws to determine what types of wills are legally valid in your state.
Some states may allow all three of the following types of wills, while others may allow some types but not others and other states may have laws about additional types of wills that are considered legally valid.
Three Legally Recognized Types of Wills
Holographic will: The person creating this type of will prepares the entire document completely by hand, including the signature and date. It does not have witnesses and is not considered legally valid in all states. If it is being used, it should ideally only be created as a final resort.
Nuncupative will: A nuncupative will is an oral will. This type of will is only considered acceptable by a few states and under a small set of circumstances. As an example, a state may view it as legally valid only if the person creating it could not prepare a written will because of unexpected illness that resulted in death. These are generally only used to cover personal property, and some states may set a maximum amount for the value of the property in question.
Typewritten or witnessed will: Every state accepts this type of will. It must meet a particular state’s requirements for witnesses. As an example, a state may dictate that a witness to this type of will be a certain age or older and be considered to be credible.
In addition to assisting with will preparation, Yoder & Company, CPA specializes in tax and financial matters for individuals, businesses, nonprofits and fiduciary entities such as estates, trusts and employee benefit plans. We offer tax planning and preparation, accounting assistance and human resources compliance, among other services.
If you have questions about completing any of the types of wills described above or need to set up an appointment for other estate planning services in Sacramento, CA, contact our expert team at 916-488-5900 today.
Are you or your family beginning work on trust planning in Sacramento, CA? An essential part of this process is selecting a responsible trustee you can rely on. This post will address how to choose the right trustee for your needs, but first, let’s look at some basic terminology.
A trust is a fiduciary relationship in which one person provides another—known as the trustee—with the right to maintain title for property or assets for a beneficiary (a third party). These relationships are common during the estate planning process and help ensure that your assets are distributed accurately to the parties that you have specified.
How Do I Choose a Trustee?
Choosing a trustee is a decision that may require careful thought. First and foremost, you should select someone who will be responsible in their position of power. Here are some tips on identifying such a person:
Has the person you’re considering already shown they’re responsible? Maybe your potential trustee has a history of managing other financial matters responsibly or of being conscientious in seeing other large tasks through and making careful decisions. This is a good sign.
An additional sign that your designated trustee will be able to actively and successfully manage your trust is that the person makes a point to stay up to date on other important paperwork, policies and legal matters they are involved with.
Has the person made important decisions in an objective way? Your trustee should be able to separate their personal feelings and relationships from their role as a trustee and make logical, clear decisions that are best for the trust.
Does the person communicate well? You want a trustee who is prompt in addressing any issues or questions about the trust and who can articulate the necessary information to you and other involved parties in an easy-to-understand manner. Previous experience serving as a liaison in formal or informal capacities may be helpful here.
In addition to feeling generally comfortable with your trustee, you should feel comfortable communicating openly and honestly with this person.
Does the person fully understand all nuances of the trust? This person should be well versed in understanding your wishes and in navigating the terminology and procedures related to the trust. If they receive new information or are not clear on something, you should feel comfortable that they will take the time to do the necessary research or ask the relevant questions to find out what they—and you—need to know.
Does the person take the trustee role seriously? You should seek a trustee who understands how important it is to you—and your beneficiaries—that your wishes be carried out correctly. This person should treat both you and the trustee role itself with respect.
As you work to identify the appropriate trustee for your needs, contact our team of knowledgeable professionals at Yoder & Company, CPA. We can work with you and your trustee at the beginning stages of this arrangement and throughout the trust management process. We are here to help you demystify and manage your trust planning needs in Sacramento, CA.
While it probably feels like you just finished doing your taxes for the year, it’s never too late to start planning for next year’s tax deadline. Don’t leave everything until the last minute next April—start by tracking and organizing your tax documents now. Meet with a CPA in Sacramento, CA to make a plan to help you to stay on track so tax time won’t be so stressful next year. Here are some easy tips to help you manage your taxes all year long:
By making a plan now for next year’s taxes, you won’t feel so pressured and frazzled next spring. Get a strategy in place early to avoid the problems you had with your taxes this year. Staying organized and informed will make the process go smoother. A CPA in Sacramento, CA can help you learn what you need to manage throughout the year to be ready for tax season next year. Make an appointment with Yoder & Co., CPA to create a plan for your next year’s taxes. We can provide professional guidance on preparing for tax season and offer personalized services that are designed to make your financial worries a lot less stressful.
While it’s not something that everyone wants to think about, an estate plan is something that everyone should have in place. When done right, estate planning in Sacramento, CA can result in a much less stressful process for those you leave behind. Knowing what you need to have in place for your estate plan can help you plan for the unexpected and be well prepared.
Managing your estate
Estate planning in Sacramento, CA can be done at any age and is especially advisable for people with children. It is good to have a plan in place to settle your assets and manage processes related to your health care.
It’s a good idea to set up a life insurance policy as part of your estate planning. This is a good idea particularly if you have children living under your roof. This will help protect your assets and give your family some security. A good option is life insurance with a 20- or 30-year term that covers the time when your children are minors.
You will also want to develop a will as part of your estate planning in Sacramento, CA. This will dictate what happens to your assets and how they should be divided up. This will take care of personal heirlooms and special mementos that you have, not to mention valuable assets and property. It will also detail who will get custody of your children in the event that something should happen to you. This is an essential part of your estate planning.
You may also wish to set up a trust that will make the transferring of your estate simpler after your passing. This often helps with taxes and prevents your estate from winding up in probate.
Managing your health decisions
Other parts of your estate planning in Sacramento, CA should indicate who makes decisions about your health in the event that you can’t do this for yourself. You should create a living will, which will provide instructions to health care providers on how to treat you when you get ill. This will let them know whether they should involve extreme measures to keep you alive.
You will also want to appoint a durable power of attorney to handle your finances and estate in the event that you are unable to do so. This should be someone you trust to handle your affairs if you are incapacitated. It is a good idea to pick a person whom you trust rather than having the court appoint someone.
Offering closure to your loved ones
A last step that you may want to take with your estate planning in Sacramento, CA is to write letters to your loved ones in case something happens to you. This will give you the opportunity to say everything you always wanted to say to your family, and gives them a last chance to hear from you.
Setting up your estate plan now is a good idea to ensure your wishes are carried out in the event that something should happen to you. Contact Yoder & Co., CPA to set up your estate planning in Sacramento, CA. We provide a variety of services related to estate planning, as well as general tax and financial services.
Whether you’re starting a new business or have been in the game for some time, you cannot go wrong by seeking out the services of an expert accountant for your financial and tax needs. Let’s take a look at five common signs that your small business might benefit from accounting assistance in Sacramento, CA:
Need small business accounting assistance in Sacramento, CA? Contact the team at Yoder & Co., CPA today to learn more about the many types of financial services we can provide.
Life is never as clear-cut as it should be, but there are steps you can take when tax season rolls around and you find yourself in a situation where you cannot file on time. Since being unable to file by the tax deadline is not uncommon, there’s no reason for embarrassment. Here are some of the reasons you might want to file for an extension—typically one to six months later—on your individual taxes in Sacramento, CA.
Missing or incomplete information
Yes, it’s irritating when an employer, company or institution misses a deadline for mailing your tax form, because it means putting your taxes on hold. Other times, form information may be incomplete or incorrect. Another common problem befalls independent contractors, also called freelancers. In many cases, a Form 1099 gets issued for freelance work. However, they don’t always get sent, or they may arrive after the filing deadline. The fact of the matter is, if you do not possess every tax form you know you should have, filing your taxes on time may not happen.
Unexpected life events
Your original plan may have been to file by the deadline, but life is unpredictable and unforgiving. From a sudden death or a family emergency to a personal illness or falling victim to a natural disaster, the last thing you need to worry about in these situations is filing your taxes. You should only need to focus your energy on yourself or your family at this time, not feel rushed to file your taxes by the deadline, especially since you can get an extension—when you request it before the tax due date. And if your reason is personal or private, don’t worry—you will not be asked to explain why you are unable to file by the deadline.
Out of town during tax time
Sometimes, certain people cannot adjust their plans, responsibilities or duties. For example, military personnel, overseas workers and world travelers may be out of town during tax season. If you fall into this category, the best route to take is to file early or file your income taxes electronically after downloading necessary forms. But you could still need paper forms or information—papers you likely won’t have with you, because you are not home. This sort of situation may call for an extension.
It’s important to keep in mind that requesting an extension for filing your taxes only grants you extra time to file the paperwork, not additional time to pay your taxes. Not to mention, you will likely have to pay interest and penalties on the tax amount that’s due. With that in mind, though it may seem like a safer plan, filing for a tax extension because you are unable to pay money owed is not the best idea. Instead, if you are ready to file now but cannot pay, file by the tax due date, and then see what payment options the IRS offers.
Be it record keeping or assistance with a tax extension, if you are looking for a company to handle your individual taxes in Sacramento, CA, give Yoder & Co., CPA a call today. We are here to help you with all your tax and financial reporting needs.
Everyone fears the Tax Man and usually, it’s because they’ve been subject to a situation that has led to unpleasant results. Maybe you were audited on your last tax return and a few minor errors were found, causing you to owe money? Perhaps you’ve had issues with filing in the past and you’ve come to resent the process each year? Or, maybe you’re just like one of the many millions of people who isn’t a tax expert and therefore, the prospect of doing your taxes is a scary one?
The truth is, the IRS is made up of people who are just trying to do a job, like anyone else. Unfortunately, this job usually leads them to making people unhappy in some way, shape or form. The real problem, however, is that when it comes time to deal with the IRS, many people actually make the situation worse for themselves because they don’t invest in IRS representation in Sacramento, CA.
For many people who are facing discrepancies with the IRS, hiring representation is just another cost in a long line of penalties, payments and fees—it’s something they’d rather not have to deal with. Unfortunately, this is one cost everyone should absolutely invest in when they’re trying to navigate a tricky run in with the IRS.
Why is having IRS representation in Sacramento, CA so important? Simple: hiring someone who knows tax laws and taxation means having someone on your side who can speak on the same level as the IRS! When you’re faced with confusing situations or aren’t sure if the information you have is sufficient, a tax representative will be able to give you peace of mind in holding your hand through the situation.
Instead of walking away from a tax situation with the burden of fees, the prospect of a black mark on your record or the draining feeling that can come with a thorough examination of your entire financial picture, a qualified representative will make sure the situation is handled appropriately. This means getting your tax situation straightened out and, if you do owe anything, helping you to understand why you owe and how you can avoid this mess again in the future.
Finally, there’s an aspect of responsibility that comes with hiring IRS representation in Sacramento, CA. If you’re faced with a sticky situation and you choose to fight the IRS, there’s a good chance you’re not going to like how things end. On the other hand, if you calmly and rationally approach the situation by hiring representation, the IRS is going to see that you’re coming to the table with an intent for peaceful resolution in mind. This is going to make the process much more open, and will show everyone involved that you’re trying your hardest to make things right.
Remember, while dealing with the IRS may be very low on the list of things you want to do, it’s one of those things that only gets worse if you avoid it or make things more difficult for yourself. The IRS is just people trying to do their jobs—make any interaction with them easier by hiring someone who can communicate with them on your behalf.
No matter what job you have or how much you enjoy that job, the time is going to come someday when you’re going to be ready to to stop working. Retirement is something that will come to everyone at some point—some, sooner than others—and when it does come, you’ll need a way to keep generating monthly income in order to live comfortably.
There are a near-infinite number of ways to approach retirement planning in Sacramento, CA. Some people squirrel money away under their mattress for years at a time; others open a 401(k) and have their company match a portion of their contribution; and still more people contribute to investment brokerages and other such retirement savings options. How you plan for retirement is up to you, but the fact rings true: everyone needs to start planning and there’s no time too early.
Knowing your options
While everyone might have their own way of saving for retirement, it behooves you to know exactly what options are available to you. Take a look at some of the most common options and what makes them unique:
The sooner the better
Because your retirement contributions compile throughout the years and compound no matter what investment path you take, it behooves you to start one as early as possible. The best time to start your retirement planning in Sacramento, CA is during your 20s. It’s during this time of your life that you’re likely to have a sustainable job, disposable income and the fewest number of expenses. Getting a jump on retirement savings early means having more contributions over a longer period of time, thus a more comfortable source of income during your golden years.
If you’re looking forward to the day when you no longer have to wake up and go to work, it’s in your best interest to start planning for your retirement now. The more you can save and the sooner you can start saving it, the more years of retirement you’ll have to enjoy your life, whether you’re the type of person who likes to travel or simply enjoy work-free days at home.
Do you own your own business, or are you in upper management at a successful company? If so, you might be familiar with budget analysis, and may have even already reaped its rewards. But for some business owners, it might be difficult to see what the point of investing in budget analysis is, particularly if you already know that your books are pristine and your payroll is on point.
But there is a whole lot more to financial planning that you might not be exploring, and it starts with getting comprehensive budget analysis in Sacramento, CA. Here is a closer look at what you could stand to gain:
If you are in need of a practical and comprehensive budget analysis in Sacramento, CA, we hope you will trust the professionals at Yoder & Co., CPA.
Tax season is officially underway! Remember that although the deadline isn’t until April 18 this year, you still don’t want to put off doing your taxes any longer than you absolutely have to. Whether you’re planning to prepare your own tax return this year or thinking about visiting a tax professional for the first time, there are some documents and forms you should gather up before getting started. The following can make the process of filing individual taxes in Sacramento, CA much easier:
As the tax deadline approaches, you’ll likely notice an increasing sense of urgency surrounding your taxes, particularly if you’re the sort to put off important and potentially stressful things for as long as you possibly can. If you’re having anxiety regarding your 2015 individual taxes in Sacramento, CA, consider scheduling an appointment with an accountant to ensure accuracy and timeliness when it comes to your return. Contact Yoder & Co., CPA today to learn more about how we can help.
Whether your business currently employs three people or 100, determining which benefits you can afford to rightly give your employees can be challenging, from the worries about financial stress to the sheer confusion of navigating all the paperwork. Fortunately, you do not have to do it alone. When you hire a local, experienced CPA in Sacramento, CA to help figure out your employee benefits plan, you are doing the best thing for your business, your employees and even your customers—not to mention your own sanity. Here is a look at five ways you stand to gain by trusting a professional CPA with your employee benefits plan:
For more information about developing your own employee benefits plan, please get in touch with Yoder & Co., CPA, your local CPA in Sacramento, CA.
Mention the Internal Revenue Service (IRS) to just about any American taxpayer and you’ll likely wind up seeing a scrunched-up face and hearing some choice words—and aside from the very idea of taxation, the thing that gets the most people riled up is the thought of being audited by the IRS.
In truth, the odds of being audited by the IRS are quite low, and although the IRS does randomly audit a select number of taxpayers each year, you’re much more likely to be audited if you’re engaging in suspicious tax activity, such as failing to report income or claiming inappropriate business expenses. Nevertheless, audits do happen, and when they do, it helps to know that you don’t have to deal with the IRS alone. Instead, you can hire IRS representation in Sacramento, CA.
What does your representative do?
Simply put, anyone authorized to provide IRS representation has the right to represent taxpayers before the IRS. What this means, in practice, is that your representative handles all of the interaction and communication with the IRS during your tax dispute.
This service offers a number of useful benefits. For starters, when you hire someone for IRS representation in Sacramento, CA, that person is automatically going to have superior knowledge and understanding of tax issues in general, and likely your situation in particular. By providing your representative with the necessary information, he or she will be able to resolve your matter with the IRS in an efficient, responsible manner. This provides peace of mind as well as results you can trust. It also allows your situation to be handled quickly—much more quickly than you’d be able to manage on your own.
When is IRS representation necessary?
IRS representation in Sacramento, CA is not necessary for all types of encounters with the IRS. For example, it’s not uncommon to receive a notification in the mail that the IRS needs you to supply proof for something in your tax return. These are typically smaller issues, and assuming you can provide the necessary proof that your return is accurate, you shouldn’t need to hire representation. Similarly, truly random audits, particularly if you’re confident in the accuracy of your return, can generally be handled without assistance.
However, if your family or business will be subjected to a more extensive audit—particularly a field audit, in which IRS agents will be looking into even the smallest details of your taxes because they suspect something is seriously amiss—you should get in touch with a qualified representative right away. The mere suspicion that there are major problems with your tax return should be enough to merit your understanding that you need expert assistance.
If you’ve found yourself in a jam with the IRS, it’s important to remember that although an audit or other tax dispute is a serious matter, it’s not necessarily something you need to stress too much about. This is especially true if you’ve secured dependable, knowledgeable and proactive IRS representation in Sacramento, CA. The team at Yoder & Co., CPA has over four decades of experience representing individuals and businesses before the IRS. Call us today to start taking steps to get the help you need.
All too often, filing income taxes can feel overwhelming. For many, hiring an accountant to handle tax submissions is a welcome relief from tax preparation in Sacramento, CA. Whether you do your taxes yourself or hire a professional to do them for you, the process will be much easier if you are organized from the beginning. As 2016 begins, it’s the perfect time to get your finances in order to reduce your stress levels and make taxes less intimidating for your next filing.
The following are several tips to help you start the year off on the right financial footing:
While starting to plan for next year’s tax preparation may seem superfluous, it’s always better to be prepared than to scramble with your finances at the last minute. When April 2017 rolls around, you’ll feel relieved to know that your 2016 income taxes are ready for tax preparation in Sacramento, CA. To contact a tax expert or to receive help with organizing your tax information, visit Yoder & Co., CPA.
When you are just starting out and securing your first job out of college, it can be fairly simple to prepare your taxes and organize your financial documents. However, as you grow older, you can start generating interest income, gaining dividend income, contributing to 401ks or IRAs and your family may grow. Financials become more involved with every new step. The more complex your financial standing is, the more you can benefit from the help of a certified personal accountant (CPA). The following are a few reasons to work with a CPA in Sacramento, CA.
You need guidance from a trusted expert
A CPA must keep up on his or her certification every couple of years. This means that by working with a CPA, you can be sure that your finances are in the hands of a professional who knows the ins and outs of personal finance and intricate tax codes. A CPA will also do an in-depth analysis of your financial situation and will point out errors, inconsistencies or possible methods of improvement.
CPAs can also be helpful for individuals who make more than $200,000 a year and would like to have greater confidence in their tax filings. Studies show that those who make this amount or more per year are most likely to be audited. If you are one of the lucky people who are chosen, it’s always helpful to have a skilled accountant in your corner.
You want to maximize your savings
A CPA will always look for possible ways for you to save your hard earned income. If you own your own business, are self-employed or possess rental properties, you may be entering into a world with unfamiliar rules regarding deductions, credits and planning. A CPA will help you navigate these waters and inform you of actions that can boost your savings and lower your taxes. For example, if you choose to make a large financial gift, a CPA can help you keep a proper record of your donation to reduce your taxable income. Additionally, when tax season approaches, your CPA can fully prepare your forms to ensure accuracy and secure an appropriate refund.
You require counsel for a life change
Life can change quickly. You may start with a single tax question and find that your financial responsibility has doubled or tripled in a year’s time. Changes in income, investments, marital status and parenthood can lead to a series of shifts in your financial plan. Whether you’re looking to minimize taxation on your inheritance, set your new business up for financial success or start saving for your child’s college education, your CPA can guide you to through the appropriate course of action.
Though financial matters can sometimes be complex, they don’t have to be overwhelming. If you think you may need a CPA, take a moment to reach out to a professional and explain your situation. Above all, working with a CPA can lower your stress and leave you with greater peace of mind. If you’d like to learn more about how a CPA in Sacramento, CA can help assist your financial situation, visit Yoder & Co., CPA.
Do you own real estate, have personal belongings valued at a minimum of $50,000 or own several cars? If so, there is a good chance that you and your loved ones could benefit from trust planning in Sacramento, CA.
While trusts are a very safe, practical and effective way to manage your estate, many people avoid setting up trusts because they assume they are not rich enough, or they think trusts are too complicated for them. Unfortunately, people who think that way are missing out on many different benefits. To that end, here is a closer look at five common myths about trust planning in Sacramento, CA:
To learn more about the benefits of trust planning in Sacramento, CA, please get in touch with Yoder & Co., CPA today.
If you are in the process of starting or have recently started your own small business, then you likely have a fairly good grasp of how to handle your day-to-day finances. But in today’s complex financial landscape, small businesses need to be prepared to handle a lot more than that.
If you are not sure you have a grasp on all the ins and outs of dealing with your small business’ money issues, then you ought to get in touch with a CPA in Sacramento, CA. Here are seven different ways meeting with a financial expert could potentially help your small business:
Whether your small business employs one person or 50, a CPA in Sacramento, CA can help you manage your taxes, payroll, benefits, long-term plans and so much more. If you would like to learn more about how a CPA can benefit your small business, please feel free to contact Yoder & Co., CPA anytime.
If you are a recent college graduate, then you likely have a lot of different things to juggle in your life. Simply finding a decent job and affordable housing is a struggle for many young people right now, which means that it might be hard to even remember that you will soon need to start paying off your student loans.
If the mere thought of paying off your loans fills you with anxiety, don’t worry—there are plenty of different things you can do to get a better handle on your loans, owe lest interest and have them taken care of more quickly. From a CPA in Sacramento, CA, here are five things every recent grad should know about student loans:
Whatever questions or concerns you have about your student loans, it is important to remember that you are not alone. For more personalized student loan advice from an experienced and friendly CPA in Sacramento, CA, please get in touch with Yoder & Co., CPA
If you have been handling your own finances for a while now, you might feel confident about your ability to file your own taxes before the April 15 deadline each year. And if not much in your life has changed in the last year or so, then you are probably right.
But as any accountant will tell you, there are a number of possible changes that not only affect your life, but also affect the way you file your taxes. If any of the following situations are true for you, you might consider seeking out help from an experienced accountant for tax planning in Sacramento, CA this coming tax season:
Whatever reason you have for needing help with your taxes, Yoder & Co., CPA is here to help make the process as easy and painless as possible. We are proud to be your source for solid, dependable and thoughtful tax planning in Sacramento, CA, and we look forward to hearing from you during the coming tax season.
As grim as it may seem, it is a known fact that everyone will one day die. Just because it may seem bleak, though, that does not mean one should shy away from the concept of death. In fact, it is important that you actually plan for your death—especially if you hope to continue to care and provide for your loved ones. The best way to ensure that your family is taken care of for years to come, even after you are gone, is to consider estate planning in Sacramento, CA.
An estate plan helps you plan for exactly what will occur following your death. By creating an estate plan, you can help your loved ones avoid any problems that may arise in the aftermath of your passing. By leaving your family with a detailed estate plan, they can avoid years of legal battles and have an easier time navigating the legal aspects of settling your estate. A properly prepared estate plan will let an individual personally decide the best choices for their loved ones. This may include who should care for any young children, who should inherit any property and who should be put in charge of the estate.
You must ensure that everything is done legally and correctly in order to ensure that your intentions will be properly carried out. Here are the most important factors to consider when it comes to estate planning in Sacramento, CA.
While you may think that you do not have much valuable property, everything you own is considered to be your estate and is crucial to consider when developing your estate plan. The first step of estate planning is to take an inventory of everything you own. The following items should be included in your inventory: real estate, vehicles, jewelry, bank accounts, safety deposit box contents, insurance policies and debt, including mortgages and credit cards. Once you have accounted for your assets, you can have a clearer idea of what can be distributed, and how.
A major benefit of properly planning an estate is establishing a guardian who would care for any minor children. But this is also true for many other big factors, such as determining who would take over the family business or figuring out what you want to be done with any property you own. A court or board’s decision can never be as good as a choice you would make yourself. By properly planning your estate, you can make these decisions on your own, ensuring that your wishes are carried out.
An accountant or estate planner can help provide you with a clear picture of your assets when planning your estate. A qualified accountant will work closely with your attorney in order to develop plans tailored to your individual needs. If you want to ensure that estate planning in Sacramento, CA will leave you loved ones well cared for, contact the team at Yoder & Co., CPA today. We can help you ensure that your wishes are followed and that your loved ones will be financially secure, while minimizing taxes today and in the future.
While it may seem as though your child attending college is still many years away, you may want to start thinking about how college will be paid for quite early—as early as when your child is still in diapers! With the total cost of college increasing at twice the rate of inflation, it is crucial that you start saving early. By starting your college savings well ahead of time, you can prevent putting yourself and your child in mountains of student debt down the line. But with the cost of college ever growing, it can be quite difficult to know how much you should really be saving each month. With the help of a CPA in Sacramento, CA, you can determine how much you should be saving, as well as how much you can actually afford to be putting away on a month-to-month basis. Here are a few crucial factors to consider when determining how much you should be saving for the cost of your child’s college education.
The first step to determining how much you will need to save is how much the college education might cost. One major factor contributing to cost is whether you are planning for your child to attend a private or public college. The current average annual cost of tuition, fees, room and board and other assorted costs (such as books) at a private college is approximately $46,272. If the cost of college continues to increase by 4 percent annually, this means that the price of college for someone born this year could wind up being about $400,000. If you are leaning toward a public university, the cost drops exponentially. Four years at a public university may come out to approximately $201,386 once your young child reaches college age. While these numbers may seem crazy, you should always plan for the worst.
What are you willing to pay for? Many families decide not to pay for every aspect of a college education. For example, you may opt to only pay for the tuition and books, leaving your child responsible for room and board. Determine what you are planning to pay for, and calculate the amount you need to save based on that number, as opposed to the entire price tag.
Get some help from a CPA in Sacramento, CA The best way to determine how much you should be saving for your child to attend college is to discuss the matter with a CPA in Sacramento, CA. A skilled CPA will be able to examine your current finances and projected growth in order to determine how much you can realistically afford to put away on a monthly basis for your child’s college education. By consulting a CPA in Sacramento, CA, you can take the guessing game out of saving and feel confident in that amount. Even if your financial situation may change over the next 18 years, a CPA can help you make the necessary adjustments based on your current financial status. Call Yoder & Co., CPA today to learn more about how we can help you plan for your child’s college education.
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