David A Rivas CPA, LLC

Do you have an accountant that’s responsive and knowledgeable? If not call me and see the difference.

Tax Tip

Entity Structure – If you currently operate an LLC as a sole-proprietor or partnership, consider making an "S election" to be taxed as an S Corporation. In many cases, doing so will significantly lower the self-employment tax burden. However, there are additional costs associated with an S Corp including payroll costs, state franchise taxes, and potentially additional tax return filing requirements, so it’s important to weigh the cost and benefits.

Tax Tip

Capital Gains and Tax-Loss Harvesting –

Long-term capital gains rates are favorable to ordinary income tax rates, so be mindful of holding investments less than 12 months. Additionally, consider selling poorly performing investments to help offset any current year realized gains.

Tax Tips

Tax Credits – There are new tax credits available in 2023, including several related to energy efficiency. Items such as heat pumps, replacement windows and electric vehicles are popular and offer significant tax credits if purchased before December 31st. However, many credits are subject to income level thresholds and may not be available to high earning taxpayers.

Tax Tips

Estimated Payments – The final estimated payment (Q4) is due January 16th, 2024. If you receive significant income not subject to withholding (business income, investment income, etc.), consider making an estimated payment to avoid underpayment penalties.

Tax Tips

Accelerate Itemized Deductions – If you typically itemize and don’t use the standard deduction, consider accelerating eligible deductions before year end. For example, consider making an additional mortgage payment or donating to qualifying charities to accelerate those deductions into the current tax year

$$$$ House Bill 162, gives a refund of up to $250 to single filers, up to $375 to single adults who head a household with dependents and up to $500 to married couples filing jointly. You must have filed taxes in 2021 and 2022 to qualify.

Tesla has dropped prices again!! Model Y performance is down to $53,990 and still qualifies for the $7,500. Do you plan to get one?