What’s needed to get started for tax planning…
review… tax compliance & preparation…
For new clients:
- A photocopy or PDF of your complete prior year’s Federal Form 1040, schedules & attachments (excluding any lengthy attachments/listings of “Sch. D trades” or “Form 4797 trades”).
- A photocopy or PDF of your complete prior year’s State & Local income tax returns.
- A photocopy or PDF of your complete prior year’s Federal & State separate entity tax returns, schedules & attachments (excluding any lengthy attachments/listings of 1099-B and “Sch. D & Form 8949 trades” or “Form 4797 trades”).
- If mark-to-market has been elected, your M2M calculations on open positions held on December 31st for the current year and December 31st for the prior year.
- Please verify spouse’s SS# and children’s SS#’s – the IRS is cracking down on these.
- Please provide the date of birth of each person / dependent listed on the tax return.
- A nonrefundable retainer fee of $800.00
Annually, for all clients:
All your current year tax paperwork, such as:
- Form 1099’s (dividends, interest, sales, canceled debt income, credit card sales, miscellaneous income)
- Form 1098’s (for mortgage and property taxes, student loan interest & tuition, motor vehicle donations)
- Form W2’s
- HUD-1 closing papers for current year real estate sales or purchases
- Invoices for purchases of major business assets, such as a motor vehicle
- Schedule K-1’s (from partnerships, s-corporations, trusts)
- Rental income activity (including depreciation schedule if we did not do the tax return last year)
- Itemized deduction listings (medical, taxes, interest, charity, gambling wagers, casualty losses, miscellaneous)
- Verify qualifying charities here.
- Details of any automobile donations made. (note that restrictions are in effect starting with 2005)
- Notation of any family changes for current year and following year: births, deaths, marriage, divorce, etc.
- Your brokers’ Form 1099-Bs, which you’ve reconciled to the current year’s trading activity.
- A listing of your current year’s brokerage trading activity (preferably a downloaded PDF listing from your broker or in a spreadsheet format) or a hardcopy of broker supplied trading activity. Click here for Schedule D / Form 8949 / Form 4797 software that may be helpful in analyzing and summarizing your trades.
- Do not write down Capital Gains from sale of securities (stocks, bonds, options) on paper. Large numbers of transactions should be submitted in a spreadsheet, which can then be electronically imported by us onto the proper IRS form, if appropriate. Or many brokers provide downloaded data, Form 1099-B, Form 8949 or other formats.
- Data may be sent via email or CD-R or thumb drive. We also offer the use of an internet web-portal (just ask!).
- Trader Status business expenses
- Other self-employed business expenses and revenues.
- If appropriate, W-2 employee business expenses
- If appropriate, Office in the Home costs (insurance, utilities, inside maintenance, etc.)
Colin M. Cody, CPA, CMA
6004 Main Street
Trumbull, Connecticut 06611-2400