Top Issues Impacting Individuals this Tax Season

For all individuals self-preparing their taxes this year, adjusting to the new tax laws alone is cumbersome and complicated. The issues below make your tax return even more difficult.
First, for those who filed as Head of Household (HOH) status, common errors are made when trying to claim a qualifying relative as a dependent. Filers must be able to discern whether their qualifying relative’s income exceeds the gross income test.
Second, taxpayers that claim unreimbursed employee business expenses may be requested by the Franchise Tax Board to provide supporting documentation, as well as a copy of their employer’s reimbursement policy to determine whether these deductions are allowable.
Third, sales of personal or real property, including like-kind exchanges are becoming closely scrutinized. Audits may be conducted whether gains and losses were properly reported, properties were “qualified” and other deferral requirements were met.
Fourth, a shareholder/partner/owner’s basis in a passthrough entity may be audited to verify whether the reporting of flow through items and amounts reported on the sales of interests in passthrough entities are accurate.
Fifth, residency and sourcing issues can be extremely difficult to account for correctly, especially if there are transactions involving sales of stock, partnership interests etc. Residents may come under scrutiny to determine whether they have established close connections with another state by reviewing bank accounts, registration of cars and the established “permanent” residence.
With the above issues mentioned, don’t do your taxes yourself. Call us today for a tax consultation and let us know how we can meet all of your tax and accounting needs.
For more information please call Guirguis & Gibbs at 661-209-3287. We are located at 27819 Smyth Dr. FL 2 in Valencia.