Pinnacle Tax Services

Tax season is coming up soon, and if you’re a real estate agent, you should learn how to maximize your deductions. Many have a variety of expenses, and being able to identify which expenses you can use as deductions is critical to helping you keep more of your hard-earned dollars.

This is important knowledge whether or not you already have an enrolled agent on hand. Understanding which expenses are allowed will help you avoid overpaying on your quarterly and year-end taxes, no matter where you are in your career.

Vehicle Mileage or Expense :
You spend your days driving between your office, showing properties and other appointments. How do you decide whether to go with the standard mileage deduction or track all your auto-related expenses? There’s an easy way to break this down:

If you drive 10,000 miles or more per year for your real estate business, you may get the greatest tax benefit by taking the standard mileage deduction. If you are a lower mileage driver, or have especially high car payments, the actual cost method may yield a higher deduction.

For those who drive more than 10K per year, the IRS requires you to keep a detailed log in order to claim this deduction, which includes date, time, mileage and purpose of the trip. It all comes down to the numbers. However, going back and forth brings consequences.

Marketing and Advertising :
Successful real estate agents typically invest in marketing and advertising, which means that business expenses like business cards, flyers, signs, ads, and promos are all deductible. However, did you know that production costs, such as writing and design fees (whether the materials are produced by an agency or part-time hire) are also deductible?

Digital and online advertising costs are quickly becoming the greatest area of spending. This includes website design and hosting fees, search engine marketing, pay per click advertising, video production, and any other IT-related costs.

Home Office Deduction :
Do you have a dedicated area of your home for work? Perfect. You’re may be eligible for a home office deduction if your space meets specific guidelines. This applies even if you also have office space at your broker’s office — unless you’re deducting desk fees already (see more below). Like the vehicle deduction, the home office deduction offers an option: the regular method or a simplified method. Most self-employed people find that the simplified method maximizes their deduction. However, if you have a particularly large home office, or live in a very high-cost area, the regular method — in which you track actual expenses — may yield the highest deduction. This deduction depends on whether or not you are taxed on an S-Corporation.

Desk Fees :
Whether you are hanging your license under a national franchise or with an independent broker, your desk fees are deductible.

Note: Are you’re taking a deduction for brokerage desk fees? If so, you will not be able to claim the home office deduction.

Office Supplies and Equipment :
Whether you’re taking desk fees or home-office deductions, you can still claim other office-related expenses. This includes stationary, photocopies, and any other consumables needed to run your business. Other large purchases that can be expensed in full — or depreciated over a number of years — include furniture, fax machines, copiers, computers, or your telephone and associated bill.

If you have a dedicated landline telephone for business, you can fully deduct this expense. If you use your cell phone only, you are eligible to deduct the business percentage of that expense.

Meals and Entertainment :
There are two situations in which you can deduct meals as a business expense: when you are traveling on business and when you are dining with clients or with other professionals for the purpose of conducting business or generating referral business. In either case, you can deduct 50 percent of your total expense, which includes tax and tip for the meal. Under the new law, entertainment expenses are no longer deductible – even if business is discussed.

In the case of events that are provided to the general public, such as a well-advertised open house, you are able to deduct 100 percent of the cost of refreshments and food.

Meal expenses can add up. Many agents save receipts and enter them into spreadsheets. They may also give them to an accountant later, but often this results in loss of receipts, and loss of money.

Fees, Licenses, Memberships, and Insurance :
Annual fees are a common cost of doing business and are deductible. In real estate, that means your state license renewal, professional memberships, and MLS dues. An important caveat with regard to professional memberships: The portion of your membership dues attributable to lobbying and political advocacy is not deductible. (For information on the deductibility of your National Association of REALTORS® dues, click here.) General business insurance and Errors and Omissions (E&O) insurance are both fully deductible business expenses.

Professional Development and Travel :
Given rapid industry change, continuing education is a great way to stay competitive. It’s also a requirement in most states. Many real estate professionals pursue professional development through classes, trade shows, conferences, or coaching. If you need to travel to attend an event or meet with a coach, you may be able to deduct those transportation and/or accommodation costs.

It’s imperative to track all this information correctly to ensure that you’re compliant with the IRS. This means it’s time to check in with your EA. If you are going for a related certificate (i.e. Relocation Specialist) the cost of the education testing is also deductible. However, a new endeavor (realtors hoping to become a broker) is not.

Software and Business Tools :
Any software needed to run your business is fully deductible — including lead generation subscription services such as customer relationship management (CRM) software.

Go into this tax season confidently knowing and understanding how you can save money.

✅ Schedule a Free Consultation ✅

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As Downtown LA continues to expand, we continue to be the top rated local CPA firm. Located in the heart of Downtown Los Angeles, we are focused on delivering quality CPA Services to the growing urban population of small businesses and residents in the Los Angeles. Pinnacle Tax Services is a highly trained and experienced team of tax professionals specializing in a wide range of services. We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we can give you the financial guidance you seek. When you partner with Pinnacle, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and client service that’s reliable and responsive.

Tax audits are a closer examination of your tax return by the IRS to verify if your income and deductions are accurate. If a mistake has been made on your return, the IRS has the ability to garnish wages and seize accounts and assets in order to satisfy the tax debt through an audit.The experience of tax audits can be bewildering and stressful. At Pinnacle Tax Services, we can answer all of your questions and help you to navigate through the process. We’ll handle all audit correspondence, prepare requests for appeal conferences, and defend your return through the highest levels of appeals. We’ll minimize the financial impact and always keep you ahead of the curve.
The IRS can be extremely intimidating, but a good tax professional knows all of the tricks, knows how to navigate their bureaucracy, and how to present your case to them in the best possible light. We also resolve issues with state and local tax agencies, such as the California Franchise Tax Board, the California Board of Equalization and the California Employment Development Department.

Forensic audits are an examination and evaluation of a firm’s financial information for use as evidence in court. A forensic audit can be conducted in order to prosecute a party for fraud, embezzlement or other financial claims. Our forensic audits are the sweet spot between an investigation and a financial statement audit. Fraud indicators often come to management’s attention without the presence of a whistle blower or a major allegation. But uncovering a scam requires forensic thinking and procedures married with forensic technology. It combines deep investigative experience developed by special agents of the Federal Bureau of Investigation with sophisticated forensic technology that identifies, captures, and harvests evidence from all information sources. We are seasoned interviewers and we focus our forensic audits procedure directly on the areas of risk.
Our industry experience means we’ve encountered fraud across all organization types. Our team is well suited because of our diverse and credentialed background, rooted from training and experience in financial statement audits, forensic data, and forensic technology. We have team members who have been designated as expert witnesses and have testified in fraud matters.
Whether your goal is to investigate a specific allegation, proactively manage risk, or perform fraud audit procedures, we can help you avoid the financial, regulatory, and reputational costs of fraud. We’ll get to the bottom of whatever you need help with.

Here’s How We Can Help:

> Gather and analyze evidence
> Integrate interview information with queries from hard drives, databases and emails
> Report our findings, review internal controls and provide remediation options
> Provide expert testimony

If you’re in need of our expertise don’t hesitate to call and schedule an appointment. We’re on your side and we’re here to help sort everything out in a professional manner with our expert team.

As Downtown LA continues to expand, we continue to be the top rated local CPA firm. Located in the heart of Downtown Los Angeles, we are focused on delivering quality CPA Services to the growing urban population of small businesses and residents in the Los Angeles. Pinnacle Tax Services is a highly trained and experienced team of tax professionals specializing in a wide range of services. We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we can give you the financial guidance you seek. When you partner with Pinnacle, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and client service that’s reliable and responsive.

Tax Services
From tax planning to tax audits, our team of professionals cater to your personal, business, or corporation tax needs including payroll tax, sales tax, and city business license tax.

Business Services
We are well-versed in business tax and accounting and can work with any business including partnerships,
corporations, LLCs, corporations, and non-profits.

Financial Planner
From entity formation to financial guidance, at Pinnacle we offer our clients so much more than tax services, including estates, trusts, and pension and welfare benefit plans.

Visit for more details : https://pinnacletaxandaccounting.com

Payroll Services for Los Angeles and Beyond :

At Pinnacle, our team of accountants provides an in-depth understanding of your payroll needs and issues with our payroll services in Los Angeles. Los Angeles can be a difficult city to find honest payroll service providers who are there for small business owners like you. Rather than simply offering computerized checks and reports, we believe the personal touch is what counts. That’s why we provide personalized guidance on all payroll matters, and we take the time to understand the unique needs of our clients.
Located in Downtown LA? Then our Los Angeles payroll services is the answer! But don’t worry whether you’re in our neighborhood, Southern California, or out of state entirely, our financial advisors will give you an experience that will exceed your expectations. Payroll is always a top priority, paid accurately and on time. We’ll fine tune the withholding of highly compensated individuals to reflect special or complex tax situations. We guarantee it all at a price that’s competitive and fair.

Our Payroll Services Include :

> Calculations for all 50 states, plus the District of Columbia, Puerto Rico and other localities and territories.
> 18 pay types, including retroactive, tip income and reimbursement.
> Multiple payroll schedules.
> Multiple withholding capability and full State Unemployment reporting.
> Standard, bonus/commission and additional payrolls.
> Direct Deposit of paychecks with the option to use multiple accounts.
> Standard and custom deductions.
> Time off accruals and tracking, including options for Sick, Personal, Vacation and others.
> Simplified data entry worksheet.
> Electronic payment of federal and state payroll taxes (where available).
> Filing of forms such as state insurance, disability reporting, quarterly Form 941, annual Form 940 and others.
> Complete W-2 and W-3 forms, service, and reporting.
> A full array of compliance and analytical reports from our accountants

Remember payroll services in Los Angeles don’t have to be complicated! Not with us. And if you live anywhere in America or the US territories we have you covered too! Call us at 877-224-0217 to help get you stated with payroll or solving any of your payroll issues.

Small business accounting services are affordable at Pinnacle! As small business advocates, we want to make sure that your accounting needs are met for your business. Accurate record-keeping is essential to a successful business yet can also be complicated and time-consuming. That’s why bookkeeping services for small business are accurate and efficient with us! The bookkeepers at Pinnacle Tax Services can help you with the organization and day-to-day tasks of bookkeeping so that you can focus on your core business. Trust the organization and knowledge of our financial advisers to help make managing your business easier. Plus, when we get to know your business through bookkeeping, we can develop specific knowledge that can help you in project management, financial forecasting and company financing.
Pinnacle is proud to offer the following small business accounting services in Los Angeles:

> Prepare and review financial statements
> Budget development and analysis
> Compute business costs and expenses
> Conduct and review cost analysis
> Conduct break-even analysis
> Mergers, Acquisitions, & Sales

Aside from accounting, small businesses also need help in other areas. Business transactions and transitions are complicated affairs, and whether you’re buying, selling, or considering a potential merger, Pinnacle Tax Services can provide professional know-how to help you successfully structure and negotiate the deal. Pinnacle Tax Services employs careful analysis and due diligence to determine a fair asking price, pinpoint the most favorable tax structures, evaluate financial and cash flow impact, and assess compatible business functions and tactics for your small business. Expanding or contracting your business is a huge undertaking. With our expert advice, you can make the right business decisions for your small business for optimum success.

Don’t hesitate in calling us at 877-224-0217 and requesting further information about mergers, acquisitions, and sales for your small business needs.

Tax planning in Los Angeles has been made easier at Pinnacle Tax Services. We provide tax planning in Los Angeles and everywhere throughout the United States for individuals and businesses. Our built-in financial software can eliminate errors and provide complete accuracy in all of your calculations. As a result you’ll save time, save money, and always have current financial information at your fingertips. In and out of Los Angeles, tax planning is a difficult task for anyone.

Think of tax planning as a financial compass and our business as trying to point you north. If conditions change, you’ll have real-time analysis of multiple scenarios and their impact on cash-flow, profitability, and headcount.

For more details check us here: https://pinnacletaxandaccounting.com/tax-planning