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Expert Tax & Accounting Insights — Page 31

Stay informed with the latest tax strategies, accounting best practices, and financial insights from our team of experienced CPAs.

Page 31 of 32

What Does a Tax Accountant Do?

Tax accountant, CPA, or Enrolled Agent? What each one does, what it costs, and the six situations where paying for one is cheaper than not hiring one.

August 24, 2018Taxes5 min read

Taxation for Employee Stock Purchase Plans (ESPP) Explained

An Employee Stock Purchase Plan (ESPP) lets you buy company stock, often at a discount, with taxes deferred until you sell. To unlock lower long-term capital gains rates, you must meet two holding periods: at least two years from the grant date and one year from the purchase date. Selling earlier is a "disqualifying disposition," where the discount is taxed as ordinary income. If you meet the rules, only a portion of the gain is ordinary income, with the rest receiving favorable tax treatment.

July 24, 2018Taxes5 min read

The 4 Phases of ESPP Accounting and What They Mean

Employee Stock Purchase Plans (ESPP) offer employees the chance to buy company stock at a discounted rate. This process involves several key phases, each playing a crucial role in managing the plan effectively.

March 12, 2018Taxes5 min read

Taxation of ESPPs explained

To avoid double taxation on ESPP stock options, you must adjust the cost basis on Form 1099-B. Brokerages often report a "zero" or low basis, but the discount you received is usually already taxed as ordinary income in Box 14 of your W-2. Use Form 3922 to calculate the correct basis: multiply shares by the fair market value on the exercise date. Adding this taxed "spread" to your purchase price prevents overpaying capital gains tax.

January 28, 2018Taxes5 min read

Taxation of RSUs explained

To avoid double taxation on Restricted Stock Units (RSUs), you must report the correct cost basis on your tax return. While the value at vesting is taxed as compensation in your W-2 (Box 14 or 12, Code V), brokers often report a "zero" basis on Form 1099-B. You must manually adjust the basis to the Fair Market Value (FMV) at the time of vesting. Failure to do so leads to the IRS taxing the full sale price, often resulting in a CP2000 notice or a large tax bill.

August 21, 2017Taxes5 min read

Income Projection Letter for Rental Apartment

Self-employed individuals often need a CPA Income Projection Letter for rental applications to verify unpredictable 1099 or LLC income. Landlords use these letters to assess long-term financial stability. A CPA does more than sign a form; they cross-reference bank statements and tax returns to validate your earnings. For complex cases, the letter itemizes multiple streams like rental income or pensions, providing landlords with a credible, professional view of your cash flow.

January 15, 2017Taxes5 min read

12-Month Income Projection for Affordable Housing

When applying for NYC affordable housing through Housing Connect (HPD/HDC), self-employed applicants face unique documentation hurdles. Beyond standard bank statements, W2s, and 1099s, you often need a notarized 12-month net income projection signed by a CPA.

November 22, 2016Taxes5 min read

Annual Budget for Condo & Co-Ops

Operating budgets for NYC condos and co-ops act as financial roadmaps, often built in Excel to ensure a balanced operating surplus. Key components include Maintenance (HOA dues), which are adjusted to cover rising costs like Payroll (unionized 32BJ labor) and Utilities (ESCO options).

November 4, 2016Taxes5 min read

Franchise Tax Board Notice of Balance Due (LLCs)

In California, LLCs must pay an **annual $800 fee**, even if inactive or losing money. Additional fees apply based on gross sales. Failing to pay can lead to bank levies, liens, and SOS suspension. To comply, you must file **FTB Form 568** for every year the LLC existed. Out-of-state LLCs (e.g., DE or WY) operating in CA are not exempt. Resolving issues involves contacting the FTB, providing sales records, and filing all past-due forms with the total amount owed to lift penalties.

October 21, 2016Taxes5 min read

My driver’s license is in one state but my tax returns are in another

While the IRS generally does not review your driver’s license for routine filings, state agencies often request it to combat identity theft. Inclusion can prevent processing delays, though it’s usually only mandatory in a residency audit.

October 20, 2016Taxes5 min read

Tax Returns for USCIS

USCIS applications, such as Form I-751 or N-400, often require proof of tax compliance. If you have unfiled returns, submit them immediately via certified mail before your interview. Bring a copy of the returns, USPS delivery confirmation, and a CPA letter confirming their preparation.

October 19, 2016Taxes5 min read

Cost of Co-Op Audited Financial Statements in New York City

In NYC, audited financial statements for luxury co-ops and condos typically cost between **$8,000 and $14,000**. Fees depend on building size, transaction volume, and record accuracy. The audit includes detailed footnotes on maintenance increases, labor costs, cash reserves, and capital expenditures. Usually, the same firm handles the **Form 1120 tax return**. These statements are vital for transparency, shareholder trust, and informed decision-making regarding building management.