The CPA Advantage
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The CPA Advantage

Too often, people receive financial advice that does not reflect their unique tax circumstances or status.

 

In partnership with our affiliated firm, K.Q. Williams & Associates, P.C., we provide financial advice that takes into consideration the impact of a variety of taxes, which may include federal and state individual and corporate income taxes, estate and gift taxes, and payroll taxes.

K. Q. Williams & Associates, P.C. is not affiliated with H.Beck, Inc.

Typical situations where tax considerations play an important role:

  • How to take distributions from IRAs prior to 59½ without paying the 10% penalty in certain circumstances
  • Calculating required minimum distributions from IRAs
  • Increasing tax efficiency in a client’s portfolio by properly allocating asset classes among the various retirement and taxable accounts
  • Determining the tax consequences of investment transactions
  • Helping business owners decide on the appropriate company retirement plan to provide to employees and/or key employees
  • How to minimize taxable income using tax-loss harvesting techniques
  • Selecting financial solutions that are consistent with income and estate tax plans
  • Evaluating the after-tax consequences of various financial decisions

Individual and Business Tax Planning and Preparation

Individual Business Tax Planning

We have been preparing individual and business tax returns since before the last major tax overhaul that occurred in 1986. While we have strong experience in many industries, our emphasis centers on professional service companies and real estate.

 

Our tax and accounting background gives us a unique perspective. For example, we observe changes in the tax landscape that don’t get communicated to the public.  These changes range from significant new tax laws to subtle tax court decisions, as well as changes that occur at the state level. Consequently, we can spot situations where clients’ tax plans have gotten out of sync with their goals.

 

Unfortunately, we often see financial plans that were never in sync from the start.  It is disheartening to hear prospective clients tell us that their financial advisor told them to go see their tax advisor after they had already acted on his or her advice – when it is usually too late. When we provide financial advice, the tax angle has already been vetted.

 

As a CPA firm, our benefits to consumers are two-fold.

 

First, we are part of a regulated industry that exists to protect the public. Thus, we are committed to upholding standards with which many of our peers are not required to comply.

 

Secondly, we are one of very few groups that can represent clients before the IRS or the State without their clients being present – a huge advantage to the client-taxpayer.

 

Regardless of the type of service we provide, we understand the confidence that clients have placed with us. We treat it as the precious gift it is, while acknowledging the weight of responsibility we assume to serve our clients’ long-term best interest.  Our clients can see us carry out this responsibility in how we manage expectations, provide education (link to workshops), and address our clients’ individual concerns with a consultative, holistic approach.

ESTATE & TRUST TAX PREPARATION

Effective estate and gift planning facilitates the orderly transfer of assets to your beneficiaries, helps provide security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can help guide you through the complex process of getting your financial affairs in order.

 

While the need for estate tax preparation has decreased due to federal and state estate tax law changes over the past decade, the demand for trust income tax preparation has increased, as more people are seeking the protection that trusts can offer.

Increasing interest in such protection may be attributed to two trends.

 

  • First is the current unprecedented transfer of wealth to the next generation. Trusts can assist families in terms of efficiency and protection.
  • Second, as life expectancies are expected to increase, the interest in using trusts increases due to the protection they offer from creditors, the government, and the beneficiaries, themselves.

The need for proactive tax planning is more significant due to the tax brackets of trusts. For 2018, trusts reach the highest tax bracket of 37% with only $12,500 of trust income. The highest tax for individuals is reached at taxable income of $500,001 for single taxpayers and $600,001 for married taxpayer filing jointly (2018 rates).

 

While Form 1041, which is used to prepare both trust and estate income tax returns, is somewhat similar to Form 1040, understanding the similarities and differences between the two forms generally requires a professional.

 

However, many accountants choose not to prepare estate and trust income tax returns, due to the complexity and nuances associated with such returns. Having a financial planner that is not only comfortable with Form 1041, but also prepares them, can be an advantage for a family seeking the protection of a trust.

ESTATE & TRUST TAX PREPARATION

HOMEOWNERS AND CONDOMINIUM ASSOCIATIONS TAX PREPARATION

HOMEOWNERS AND CONDOMINIUM ASSOCIATIONS TAX PREPARATION

When Williams & Associates was founded in 1991, our first client was a common interest realty association (CIRA). CIRA is the term that refers to homeowners and condominium associations. It also includes cooperatives and other such entities.

 

Today, most of our attestation and compilation work is in the area of CIRAs.  While few accounting firms in the Baltimore/Washington area have a specialty in the CIRA industry, our experience surpasses 25 years.

 

Additionally, every three years, our accounting quality control is subject to a peer review, with the peer reviewer looking exclusively at our CIRA work. To date, all prior peer review engagements have resulted in the highest possible rating.