Tax Planning is difficult in Election Year due to the uncertainty of the New and Current Tax Law Changes in post election period. Suggest the following incremental steps for Tax Planning:
1. Plan for taxes based upon the present Tax Laws up to Dec 20th.
2. By January 1, the new Tax Laws would be known, so tweak the Tax Plan as required in January.
3. Some Tax planning may still be inadequate - correct it later on.
YMA Clients are offered Free Tax Planning through out the year. Take advantage of it. For Q & A Call Kash @ Yajnik and Mehta Associates (925) 963 4891
Monday, October 22, 2012
Monday, October 15, 2012
" What Are The Repercussions Of Post October 15, Tax Return Filing ? "
The Repercussions of Post October 15, Tax Return filing are as follows:
1. No eFile - Only Paper File Tax Return
2. No ePayment - Only Pay by Mail
3. No eRefund Deposit - Receive a check by Mail
4. All these situations will add time delay in Tax Return Processing
5. If Tax Payer Owes money, then following penalties may apply:
o Late Filing Fee
o Failure to File Return
o Late Payment Penalty
For Q & A, Call Kash @ Yajnik And Mehta Associates (925) 963 4891
1. No eFile - Only Paper File Tax Return
2. No ePayment - Only Pay by Mail
3. No eRefund Deposit - Receive a check by Mail
4. All these situations will add time delay in Tax Return Processing
5. If Tax Payer Owes money, then following penalties may apply:
o Late Filing Fee
o Failure to File Return
o Late Payment Penalty
For Q & A, Call Kash @ Yajnik And Mehta Associates (925) 963 4891
Monday, October 8, 2012
" TAX Return Deadline - Octo 15, 2012 "
The New Deadline to File your Personal Tax Return is October 15, 2012. Note Second Extension is not available. If you miss this following penalties may apply:
1. Late Filing Fees
2. Failure To File Tax Return
For Q & A, Call Kash, Yajnik & Mehta Associates @ (925) 963 4891
1. Late Filing Fees
2. Failure To File Tax Return
For Q & A, Call Kash, Yajnik & Mehta Associates @ (925) 963 4891
Monday, October 1, 2012
" What are the Tax Consequences of Your Home Short Sale ? "
When the Principal Residence of a Tax Payer is sold in a Short Sale, the following Tax Consequences may be expected for a Recourse Mortgage Loan or Loans:
1. Expect 1099-C or 1099-A Or Both in the following Tax Year from the Primary Mortgage Bank for the property sold.
2. Expect 1099-C or 1099-A Or Both in the following Tax Year from the Line Of Credit (LOC) Bank for the Primary Residence sold if there is LOC.
3. If the Tax Payer is Insolvent before the Short Sale Date, Insolvency Work Sheet needs to be prepared.
4. Tax Payer's Credit Rating will be down graded for at least 3 years.
5. Figure Out Debt Cancellation Income.
6. Debt Cancellation Income is added to Annual Overall Income for Tax Calculation.
If you the Short Sale is planned properly, you shouldn't be surprised when the Tax Return is prepared in the following year. For Q & A, call Kash @ Yajnik & Mehta Associates (925) 963 4891
1. Expect 1099-C or 1099-A Or Both in the following Tax Year from the Primary Mortgage Bank for the property sold.
2. Expect 1099-C or 1099-A Or Both in the following Tax Year from the Line Of Credit (LOC) Bank for the Primary Residence sold if there is LOC.
3. If the Tax Payer is Insolvent before the Short Sale Date, Insolvency Work Sheet needs to be prepared.
4. Tax Payer's Credit Rating will be down graded for at least 3 years.
5. Figure Out Debt Cancellation Income.
6. Debt Cancellation Income is added to Annual Overall Income for Tax Calculation.
If you the Short Sale is planned properly, you shouldn't be surprised when the Tax Return is prepared in the following year. For Q & A, call Kash @ Yajnik & Mehta Associates (925) 963 4891
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