Annapolis, MD, Sept. 14, 2022 (GLOBE NEWSWIRE) — With interest rates soaring and the U.S. economy showing signs of a slowdown, it’s never been more important for businesses and households alike to understand the tax system to maximize their returns and minimize their losses– and one expert CPA vows to be the ally they need.
Marina V. Painter, principal with the Ally Tax Group Inc., brings roughly 20 years of experience with taxes to offer her grateful clients the insight they need to master their tax filings. The company’s services include tax preparation for businesses, individuals, nonprofits, trusts, and estates, bookkeeping, payroll, sales tax, and tax consultation and tax planning.
“Our name Ally Tax Group Inc. is the foundation of our operating style and culture that sets us apart from the rest. We are our clients’ accounting allies and trusted business advisors,” says Painter. We fulfill our mission when we know our clients paid the least amount of tax legally possible, and we made the process efficient and effective, so our clients are not overwhelmed by it. Every one of our clients gets peace of mind that no matter how small or big the tax task, we are in their corner and here to help with expertise, excellence, and ease.”
With the economy slowing down, the need for cash flow is imperative. Through proper tax planning, we can ensure maximized refunds, mitigated risks, and the saving of our hard-earned money.
Some financial experts are suggesting that the U.S. economy is surviving largely based on consumers tapping into their savings and that a downturn is likely once those savings start to run out. If that outcome happens, the money that someone can save, or make, on a tax return might play a major role in ensuring that they can have a viable financial future.
And while Painter provides comprehensive support and advice to her clients, she’s also willing to share some top tips for how people and businesses can develop better tax strategies.
Top tax tips for business owners
When starting a business, it’s important to start off the right way – meaning you must have an expert in your corner who can explain the various tax provisions and implications. Otherwise, you might find yourself with out-of-control tax bills and complications in the future.
One recent survey found that more than 40 percent of people earning $150,000 or more have left their jobs recently to launch their own businesses. But without the proper startup support, they could be stumbling toward avoidable tax problems. Ally Tax Group Inc. works one-on-one with business clients to curate a tax strategy that will endure for many years.
Failing to plan in advance can lead to failure. In fact, around 20% of businesses fail in the first year, with 70% failing by the end of their tenth year. Setting up a financial blueprint and planning ahead can help mitigate failure. “Implementing accounting systems to gauge and track profitability margins is essential. Not only because they are essential for tax planning, but because they influence timely management decisions that may be needed to preserve a company’s financial health,” Painter says.
There are a host of tax deductions available that can dramatically save you money and possibly even result in a profit. This is why tax planning is among the most important things a business should do.
The IRS tax code was not written in the way for people to overpay in tax but pay their fair share of tax, however, people need to know the code and its’ tools. If people overpay in tax, it’s on them, which is why knowing all the tax deductions and all the loopholes the tax code has to offer is so important.
One such benefit in the tax code relates to that of 401(k) plans. Providing a 401(k) retirement investment plan for your employees can also be a great way to make the tax system work for your company and not the other way around. There are federal tax credits available for qualifying small business startups. And every business that pays expenses related to a 401(k) investment plan is eligible to claim a tax credit deduction.
“Incorporating strategies like S Corporation conversions to eliminate 15.3% self-employed tax; SEP, 401(K), and profit sharing plans, the timing of equipment purchase, hiring your children that are not subject to FICA taxes all can save hundreds of thousands in tax. That’s where the real beauty is in hiring a tax expert!” Painter says.
Painter also mentioned that starting this year a lot of business owners can now benefit from receiving Employee Retention Credits (ERC) for continuing to employ their staff during the pandemic. It’s a refundable credit that can be up to $26,000 per employee according to the IRS Employee Retention Credit – 2020 vs 2021 Comparison Chart | Internal Revenue Service (irs.gov). Businesses will have three years to claim it.
Top tax tips for individual filers
Individuals and households can also stand to make savings, or even gains through refunds if they have the right guidance to be strategic when it comes to filing their taxes.
Surveys show that millions of Americans either aren’t saving for their retirement at all, or they don’t believe that the savings they have will be enough. Deferring income through your employer’s 401(k), 403(b), or TSP plan is not only a useful way to plan for the future, but it can also help you save at tax time.
Investing in real estate can be another great way to end up with an individual tax filing that provides the best possible benefit, according to Painter. She has helped many personal clients avoid any financial punishment from capital gains tax when selling properties – in some cases, her invaluable insight has created situations where homeowners pay zero capital gains tax through careful planning.
For example, Ally Tax Group Inc. helped one client when selling two properties: their primary residence and investment property. The client wanted to use the equity from selling the two homes to buy a retirement property without having to get a mortgage, but they faced almost $50,000 in capital gains tax liability. Painter’s team applied their skills to legally restructure the sale of the second property so that the client paid nothing in capital gains tax after both sales.
“With proper and proactive planning, homeowners, in some cases, can save tens of thousands on taxes when selling their properties, and sometimes pay absolutely no tax at all,” Painter says.
Failing to plan is planning to fail
At the core of the advice that Painter and her team at Ally Tax Group Inc. offer is their long-running belief that “If you fail to plan, you plan to fail,” meaning that no planning on tax returns can create unnecessary financial burdens for companies and individuals alike.
That’s why Painter encourages anyone hoping to reduce their tax liability and increase their odds of either paying lower, or zero, taxes and maybe even scoring a refund to get in touch. “Our knowledge and expertise can prove to be your greatest ally,” she says.
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