Sometimes we San Franciscans get so busy we may not have stopped to notice how life has changed over time. Maybe ten years ago a San Francisco local was starting at the ground floor in a new job. Another could have decided to take up residence in their parent’s garage while working 24/7 on a start-up product.
For a budget-friendly break, ambitious Bay Area residents normally pack their funky old cars and head to Stinson beach for the weekend. As time passes, careers take root and products launch. The days of existing on beans and rice is over. Vacations are now spent flying to Hawaii or somewhere overseas. At some point, that old Honda was finally traded in for a shiny new BMW. There were some great memories with that first car, but it just doesn’t fit life today.
If your income has experienced a growth spurt, maybe it’s time to look at how your current tax advisor is managing your needs. A tax accountant who’s been around since your “rice and beans” days could still be treating your $400k income like it’s an easy $50k tax return. That’s not good. It’s critical to remember that every year as your income changes, so do the income tax codes. The IRS frequently reviews and adjusts various tax provisions to count for inflation. Has your current tax preparer paid attention to the jump into a new tax bracket? Do they understand how prepare taxes for high income earners this coming tax season? If not, it may be time to find a better fit and contact a professional accounting firm skilled in tax preparation for wealthier individuals.
Need to ask a SF Tax Accountant about Preparing Taxes for a Higher Income? Just Say “Pease!”
Pease Limitations are one example of how the rise of personal wealth needs to be managed diligently by an expert SF tax accountant.
Pease tax code provisions will increase taxable income for high-income earners during the next taxable year. Once your adjusted gross income (AGI) exceeds a certain level, many of the itemized deductions you’ve taken in past years may not be there. It’s important to make sure you are in the right tax bracket or the IRS could come calling with penalties. A SF tax accountant is ready to review how your earnings have changed and prepare taxes for the tax bracket you belong to now.
Wealthy San Francisco individuals are a supportive lot. They like to give to charitable causes and make positive change for others. Whether it’s saving the wolf population or supporting a cure for childhood cancer, the donation may be more important than the deduction to some. Still, if you are expecting a certain return during tax season, check with our tax accountants first before attending the next fundraiser. The Pease Limitations mean itemized deductions have been capped for charitable gifts in the coming tax year. That means you should be prepared to expect less from giving to a worthy cause.
If your hard work has paid off and you are one of these newly wealthy individuals, let Safe Harbor work hard for you. Our San Francisco-based accountants know how quickly life can change for people in the Bay Area. Keeping up with tax preparation as your wealth has grown shouldn’t be on your shoulders. There is so much we can do to minimize your taxes! Let a top SF tax accountant team like Safe Harbor manage the growing pains.