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2016 Tax Tips

  • Lets talk about some tax tips that will help you save money. While selling underwater stocks be aware that Wash sales losses are not tax deductible. A wash sale is a double transaction of securities within a 61-day window. This rule is to prevent investors from recognizing artificial losses by first selling a security for a loss and then repurchasing the same security within a short period of time.

  • Companies give stocks to employees under Restricted Stock Options (RSUs) plan. When RSUs vest they are assigned a fair market value and this amount is added as ordinary income in your W2. A portion of these securities is withheld to pay income taxes. The fair market value at the time of vesting now becomes your cost basis. When you sell these securities, you take profit or loss based on your cost basis i.e the fair market value at time of vesting. Therefore it is important to keep record of all transactions to avoid double taxes on securities. Something similar happens in case of Stock options and ESPP.

  • Research has shown that up to 80% consumers seek financial advice from friends and family members they trust. Keep in mind your friends advice doesn’t take into account your personal situation. It may not necessarily be bad advice, but everyone’s money or tax issues are different. More importantly tax laws change frequently and your friends may not be up to date with the law. Therefore avoid trouble or higher taxes by taking advice from a professional for all tax and financial matters.

  • Get organized and look out for 2015 tax documents including cost basis from your brokerage company. Remember IRS gets a copy of all your tax documents. You may miss out on some information but IRS will not.

  • Make sure to claim your HSA/FSA amount for the year 2015, contact your HR if you have questions.

  • Save all your tax documents and backup. Take time filing your tax returns, do not rush, we all make mistakes when we file in a hurry if required take an extension.

  • With high cost of living in bay area, makes us wonder do we make enough money? Well I pulled out some statistics and found out that more than 63% families in US make less than 50K a year.

  • There are only ~ 15% of families in US that make more than 100K per year. Research has shown that money and happiness goes hand in hand to a great extend, so better tax and financial planning will definitely make us happier.

  • My Vision is " To provide quality services, blended with personal touch at a competitive price."

  • I take quality of my work and client satisfaction seriously. My firm went through a peer review, wherein an independent CPA reviewed my work. Similarly it is important to get your tax returns done by a professional CPA and have peace of mind.
    I provide complete solution to my clients by simplifying tax jargons, educating them about their returns; provide yearlong consultation, reply to IRS queries and notices.
    Importantly I personally work on my client’s tax returns they are not handed over to any other individual or firm.


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