Questions to ask your CPA

Tax Planning

  • If I own a “C” corporation, what strategies can I use to minimize exposure to double taxation?
  • If it comes time to sell my company, should I sell the assets or should I sell the whole company as a going concern?
  • When can I defer income to next year in order to reduce this year’s tax liability?
  • For tax purposes, do I have to run my company on a calendar-year basis? Under what conditions can I change to a fiscal year instead?
  • The IRS has called me in for an audit. Must I go in person or can I ask my CPA to go in my place?
  • How does one determine the deductible value of computer technology donations to charitable organizations?
  • What criteria must an individual or business meet to qualify for a home office deduction?
  • How do I compute depreciation for my business if it is subject to the Alternative Minimum Tax?
  • What are my responsibilities in regard to collecting and remitting sales taxes? Are certain types of transactions exempt from these requirements?
  • When does an independent laborer become an employee for whom I have to withhold?
  • What are my responsibilities in withholding and remitting employee payroll taxes? What is my personal liability if I fail to comply with the law?

Personal Financial Planning

  • What is the best way to allocate assets for maximum tax efficiency? Do I keep taxable, inefficient funds with high turnovers in my IRA or other tax-deferred account, and conservative, tax-efficient funds in my taxable accounts?
  • Should I set up a trust to accumulate funds for my children’s education? What types of trusts are available? What are the pros and cons of each?
  • How can I lower taxes by shifting income to my children, and how much money can I give to them as gifts?
  • What is “second to die” life insurance, and how does it play a role in estate planning?
  • If I want to donate a stock I lost money on to a charity, how should I do this so I can maximize my tax savings?
  • What is my risk if I extend the holding period on a stock to 12 months to qualify for a lower capital gains rate?
  • Should I consider making a withdrawal from an IRA to pay college expenses? If I do, will I pay a penalty?
  • If I need to borrow money for personal use, what is the best source: home equity loans, 401(k) loans, banks, finance companies, brokerage firms or insurance policies?
  • How does the Roth IRA work? Can my nonworking spouse make a contribution to a Roth IRA if I am covered by my employer’s pension plan?