Sunken Accountancy Corporation: Client Resource Center

Practical answers for your questions

255 MAPLE CT STE 140 • VENTURA, CA 93003

Phone: 805-658-1272 • Fax: 805-658-1276

[javascript protected email address] • www.venturacpas.com

Definitions of hard to understand tax and investment terminology and how to use them to your advantage. PLUS answers to common tax questions!

Common Tax Questions

How do I defend Fair Market Value?

Cash or accrual? What's the difference?

Can I deduct fees I pay to care for my child while I work?

Who can I claim as a dependent?

Is disability income taxable?

What tax breaks are available due to a natural disaster?

What if I can't file my tax return on time?

I'm retired. Do I need to file a tax return?

Does my child have to file a tax return?

What is the best filing status?

When are gift taxes due and who pays them?

Can my hobby be considered a business?

Is the sale of my home taxable?

Must I buy a more expensive home to avoid taxes?

Are mortgage refinancing costs deductible?

IRA: Can my child set up an IRA?

IRA: Can I make penalty-free IRA withdrawals?

IRA: Should I convert my traditional IRA into a Roth?

IRA: What if I fail to take my required minimum distribution on time?

IRA: When are withdrawls required?

IRA: Can I invest in anything I want?

Can I itemize deductions this year?

What if I owe more to the IRS than I can pay?

What are IRS penalties if I pay my taxes late?

Why do I need a tax professional when I can buy tax prep software?

Who should own our business building?

What is the best way to assemble records to prepare my tax return?

Are my Social Security benefits taxable?

Do I have to make an estimated tax payment?

What's wrong with getting a big refund?

What is a capital Gain Distribution?

How to Correct an Error on my Tax Return?

Is Bond Interest Taxable?

How Does Adjusted Gross Income Differ from Gross Income?

What to do with a loan to you that has gone bad?

My W-2 is WRONG! What should I do?

Unemployment Benefits: Are They Taxable?

How to keep track of business car expenses?

Is cancelled debt Income?

What is the difference betwee a tax deduction and a tax credit?

Is a Section 529 plan the right college savings plan for you?

Understanding Tax Terms

Understanding Tax Terms: Innocent Spouse Relief

Don't overlook valuable tax credits

The Tax Gap

Tax Credits versus Tax Deductions

Is Being Effective Better Than Being Marginal?

The Kiddie Tax

Wash Sales

Flow-through Entities

Depreciation Recapture

Contemporaneous Records

Adjusted Gross Income (AGI)

Applicable Federal Rates (AFRs)

The Earned Income Tax Credit (EITC)

Education Savings Account: Coverdell ESA

Education Tax Credits

Section 529 College Savings Plan

Head of Household

Health Savings Account (HSA)

Home Office

Interest: In the Eyes of the IRS

Marriage Penalty

Nanny Tax

Passive Activity

Am I Subject to Backup Withholding?

Alernative Minimum Tax (AMT)

Offer in Compromise (OIC)

Understanding Capital Gains Before You Sell

Above-the-line Deductions

Understanding Bartering

Practical answers for your questions

Common Tax Questions

Understanding Tax Terms

Other Topics