Use your 1040 to identify planning opportunities

Use your 1040 to identify
planning opportunities

Thought you were done with
your CPA after 4/15? Bad move. Now’s when the good stuff can be done. Call your
CPA and book an appointment to review your recently filed 1040. Instead of
focusing on getting a return done, pick your CPAs brain about what he or she
can see in your return and back up data that can help you plan better. CPAs
have a lot more talent then just plugging numbers into tax return input sheets.
More importantly, they have a perspective and independence that can help
identify things that you’re just going to miss because simply its your stuff
and you’re too involved. Few clients take advantage of this type of follow up.
Their loss. The following are just a smattering of the myriad of ideas. Find
out upfront whether your CPA is being objective or selling a product. It might
affect the advice.

0 Business Entities. Do you
have a home business or rental property on Schedule C or E that should be
restructured as an LLC?

0 Residency. Did you report
state income tax as a resident of the correct state? Are there any planning
opportunities? Can you take steps to bolster your position as to the state in
which you reside for income tax purposes? If you allocate earnings between
states have you maintained a calendar?

0 Documentation. Are you
keeping adequate documentation for your deductions? Are there some things you
can do better? Are you noting business details on the back of business credit
card receipts?

0 Computerization. Are you
still using a manual checkbook? Have your CPA get you into the electronic age.
It will make it easy to back up and secure your data, simplify recordkeeping
and more.

0 Deductions. Can you plan to
bunch itemized deductions to exceed the thresholds for deductibility better in
the future?

0 IRA. Have you funded an
IRA, can you convert to a Roth, are your beneficiary designations current?

0 Insurance overview. Do you
have enough life and disability insurance based on your assets and earnings?
Your 1040 and the work sheets supporting it can give your accountant insight as
to the appropriate levels of coverage. Are all your properties and assets
covered adequately for liability and risk?

0 Asset allocation. Are your
investments generally reasonable in light of your risk tolerance and needs?

0 Investment clutter. Do you
have too many accounts in too many places?

0 LLC for Schedule C business

0 LLC for Schedule E real
estate

0 No Medical deductions might
mean get a lower deductible plan

0 Property tax on a vacation
home may trigger ancillary probate