Personal Income Tax Preparation

DRK Associates is more than a tax preparation / document preparer company. Our philosophy sets us apart from traditional tax and accounting firms.  We take a larger planning approach to our tax advising and offer a vast team of professionals and resources to offer solutions to the ever changing rules of tax, business, estate and legal services. 

 

Our goal is to utilize all of the proper advantages the law allows to lower your taxes by implementing tax reduction strategies and understanding the unique rules for special occupations.


Tax reduction strategies for individuals

 

Lower tax liability with:

v  The correct timing of events or deposition

v Using insolvency to reduce or eliminate the taxability of debt cancellation income, such as in foreclosures or short-sales

v  The preparation of agreements or contracts

v  Strategic timing for a change in title

v  Tracking improvements on principal residence

v  Tracking suspended losses and disallowed interest on investment property

v  Giving a better types of assets to charity, such as highly appreciated stock

v  Timing marriage or divorce with the sale of personal residence for extra $250K exclusion.

v  Lower taxable winnings from gambling and lotteries by tracking losses

 

Reducing the taxability of your Social Security benefit

v  Preventing additional taxes on Social Security due to municipal bond interest

v  Social Security benefits are taxable at the following rates: 85%, 50%, 0%, depending on income

v  Timing distributions can lower the taxable amount of your Social Security benefits

 

Increasing your Social Security Benefit

v  Qualifying for additional Social Security quarters when you or your spouse are short of the forty quarters

v  Prevent payback of Social Security benefits during early retirement if income too high

v  If prior marriage over 10 yrs—ex-spouse benefit may be greater

 

Lowering Death Tax Liability

v  Married couple holding title in community property instead of joint tenancy.  Community property gets a step-up in basis for each half to the surviving spouse and another step-up in basis at the second death.

v  Having an A/B style living trust for double the estate tax exclusion

v  Using strategic language in trusts

v  Unlimited transfers allowed for educational and medical expenses, due to no reduction in the Unified Credit and is not considered a gift for purposes of gift tax if provider paid directly; includes payment of medical insurance premiums