I've been talking with my accountant.
It will cost me about $500 - $1000 for year end tax planning depending upon complexity.
We usually do it to calibrate tax payments.
If you underpay by more than a certain percentage, you not only have to pay the under payment, but also a penalty (10% I think).
Therefore we usually check at year end to see where things are at.
It also allows me to accrue the under payment.
The typical documents required are:
1. pay stubs
2. tax report from quicken (dividends, capital gains/losses, extraordinary expenses, charitable donations, interest earned)
3. mortgage statements for properties (to check how much mortgage interest is tax deductable)
4. professional fees (accountancy)
5. retirement contributions (salary deferal)
I should find out where am at in the next two weeks - if Thanksgiving doesn't present an issue.
Regards,
makingourway
I'm hoping I won't owe that much
Thursday, November 20, 2008
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