Here are the answers to
some of the most Frequently Asked Questions our firm
Q. How long do I need to
keep my tax records?
simple answer is at least 5 years from the filing date of your
tax returns.A more complete answer is to consider you have
other needs for this information such as for insurance and
financial puposes. So:1) Keep tax returns forever. 2) Keep all
purchase information on assets and investments for at least 5
years after the date you sell the asset including your home. 3)
Keep necessary invoices and product guarantees on assets you
possess for warranty and insurance purposes.
Q. When I sell stock what
information do I need for my tax return?
A. You need
to provide us with the broker statement sent to the IRS, form
1099-B and information to show the original purchase price and
date you acquired the stock.Sometimes you need to give us
information about corporate mergers, splits and stock splits.
We then have to spend time computing the basis of the
stock.Call and ask us about how you can have your broker send a
copy directly to us to facilitate the preparation of your
Q. What does marginal tax
bracket mean and where can I find mine?
marginal tax bracket can be found on the bottom of your tax
summary sheet both Federal and State that we supply each
year.It means the rate of tax you pay/save on the next amount
of income you earn or deduction you claim. We use this rate to
give you a simple answer to your questions when you ask us what
will you pay in tax if you take more out of your IRA or if you
decide to make a larger charitable deduction. You have to be
aware of Alternative Minimum Tax and other issues.