Ebere Okoye

I'm extremely passionate about helping real estate investors and professionals with tax reduction strategies, entity structuring, analysis & risk assessment of investment deals, and much more in the field of accounting.

Active Rain is a great network of real estate professionals and investors and I would like to dedicate this post to answering questions relating to accounting and real estate. This will be great opportunity for us to collaborate and learn from each other. 

So ask away by commenting and I will respond.

If this goes well, I may do it periodically. 

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About the Author
Ebere Okoye is the CEO of Wealth Building CPA and a Certified Public Accountant. The Wealth Building CPA is a complete accounting and financial team with the training and experience to help both private individuals and companies handle and grow their assets in the most efficient manner possible. Contact us today for a FREE initial Consultation 301.830.6830.
Website: http://www.wealthbuildingcpa.com
Email: info@WealthBuildingCPA.com
Twitter: @WBCPA
Facebook: @WealthBuildingCPA

“Top 20 Tax Planning Tips for the Unemployed” provides in-depth explanations of tax questions that arise for the unemployed. Some of these questions include:

Is Severance Pay taxable?

If I sell other assets like stocks, bonds, and investment property, are they immediately taxable?

What can I do if I owe taxes and cannot pay them?

What if I withdraw money from my qualified retirement plan or IRA?

Can I deduct any of the expenses that I have from looking for a new job?

Is health insurance deductible?

Below is a free copy of the new book.

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About the Author
Ebere Okoye is the CEO of Wealth Building CPA and a Certified Public Accountant. The Wealth Building CPA is a complete accounting and financial team with the training and experience to help both private individuals and companies handle and grow their assets in the most efficient manner possible. Contact us today for a FREE initial Consultation 301.830.6830.
Website: http://www.wealthbuildingcpa.com
Email: info@WealthBuildingCPA.com
Twitter: @WBCPA
Facebook: @WealthBuildingCPA

Once December 31st has come and gone, your tax liability for the 2010 tax year will be set in stone. Until then, and especially now that your final tax picture for 2010 is becoming more clear, year-end tax planning presents a unique last chance to lower your tax bill. It is an investment in time well worth considering.

Tax preparation for the March 15th or April 15th return is not considered advance tax planning. It is merely tax compliance as opposed to voluntary tax reduction planning. Though returns aren’t due until April, they cover a tax year that ends Dec. 31. Some of the best tax-reduction moves really need to be done by mid-November or early December. They often take some advance planning. Getting a head start could make you a lot happier in April, giving you a bigger refund or a smaller check to write to Uncle Sam.

By taking certain steps now, before 2010 draws to a close, you can reduce the size of your tax bill otherwise due when you file your return next year. Especially this year, when Congress has inserted a handful of powerful but temporary tax breaks to get the economy moving again, you do not want to overlook any deduction or credit that you can take in 2010 to lower this year's tax bill. Managing what income you recognize or defer also can pay dividends as you focus on balancing your tax rates between 2010 and 2011, and beyond, with tax reform on the horizon.

Year-end tax planning is made more urgent in 2010 because of some significant tax law changes, both those that have taken place to stimulate the economy and those now on the horizon to pay for the recovery.

What is on the horizon, for 2010 and beyond, is also crucial to effective year-end tax planning this year.

• In 2010, the opportunity to convert any IRA into a Roth IRA without the long-time $100,000 income restriction has many individuals already setting aside funds. Some individuals, however, may do better to convert to a Roth IRA before the end of 2009, when the value of their accounts, and the consequential income that must be recognized on conversion, are at historic lows.
• Effective for 2011, the Obama administration has proposed to increase the income and capital gains tax rates on single individuals with incomes of more than $200,000 and married couples with incomes exceeding $250,000. For taxpayers in those groups, including unincorporated small businesses from which their owners recognize income on their individual returns, following the traditional year-end planning maxim of deferring income into next year may not work well this year. Deferring too much income into 2010 could result in overloading income next year if you are looking to accelerate income into 2010 to escape the expected higher rates in 2011.

Year-end tax planning is not only about what is happening in Congress and at the IRS. Addressing the changed circumstances in your life has always been a large part of year-end tax planning. What you planned for at the beginning of 2010 may not be what you are faced with now. Changes in your employment status, family, investments, or retirement plans raise new tax issues:

• Self-employment, severance pay, sign-on bonuses, stock options, moving expenses, and COBRA health benefits, to name a few employment-related events, all present unique challenges.
• In your personal life, marriage, divorce, a larger family, and child care or eldercare expenses arising in 2010 can impact your tax situation.
• Investments, too, generally benefit from year-end tax strategies. You can take steps to balance out gains and losses. You also should take a year-end tally of dividends and interest to make certain that are paying the correct estimated tax.

A special word about losses, especially as this difficult year draws to a close. Matching losses with gains is not necessarily a simple task in the tax law. Different rules apply to different losses. Losses can be ordinary losses, passive losses, at-risk losses, capital losses, hobby losses, casualty losses, gambling losses, or Code Sec. 1231 losses. Knowing the differences and acting before year-end to match them correctly can mean significant tax savings.

Planning for deductions and credits at year-end can also get complex but can be equally as rewarding. Timing and qualification rules create traps and opportunities:

• Pre-paying certain expenses, such as real estate taxes or mortgage interest, do not necessarily translate into a larger deduction this year.
• Paying a spring college tuition bill in late December instead of early January, however, can impact whether you maximize the benefit of the new American Opportunity Tax Credit for both 2010 and 2011.
• Year-end charitable giving generally has always been a smart way to reduce current year taxes but strict timing rules and revised substantiation requirements for property donations cannot be overlooked.
• Homeowners should also not ignore taking advantage of the new residential energy property credit, which has a unique set of rules on qualifying expenses and deadlines for installations.

Especially during 2010 -- a year of tumultuous change for our economy and our tax laws -- this office considers a year-end tax checkup an essential service for our clients.

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About the Author
Ebere Okoye is the CEO of Wealth Building CPA and a Certified Public Accountant. The Wealth Building CPA is a complete accounting and financial team with the training and experience to help both private individuals and companies handle and grow their assets in the most efficient manner possible. Contact us today for a FREE initial Consultation 301.830.6830.
Website: http://www.wealthbuildingcpa.com
Email: info@WealthBuildingCPA.com
Twitter: @WBCPA
Facebook: @WealthBuildingCPA