Tax Audits: Tax Preparation Pitfalls to Avoid

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Tax Audits: Tax Preparation Pitfalls to Avoid

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November 20, 2019
avoiding tax audits, best wealth management southlake texas, proactive tax planning, tax audit pitfalls, tax audit triggers, tax planning southlake texas, tax preparation, tax preparation southlake texas, wealth management, wealth management southlake texas

No one wants to be audited, and in fact, less than 1% of all taxpayers are audited. While there is no formula for determining who will or will not be audited, there are certain pitfalls Metroplex Wealth recommends you avoid to minimize the risk:

#1: Failing to Disclose All Income

Since businesses, employers, and financial institutions are all required to report their own income information, it’s very easy for the IRS to cross-reference and flag individuals who fail to report all of their income. Don’t be that guy. Report all of your income and you’re less likely to get audited.

#2: Filing a Return that Differs from Most in Your Tax Bracket

The IRS has a formula they call the Discriminant Information Function that evaluates the normal deductions, credits, and exemptions for taxpayers in various income brackets. If you file a return that deviates heavily from the norm in your tax bracket, this may sound an alarm for the IRS to conduct an audit on your account. Working with a trusted tax preparation specialist in Southlake will help you avoid these costly mistakes.

#3: Reporting Rental Property Losses

In most cases, if you own rental property, you cannot claim deductions on the losses. However, if you’re working more than 50% of your time on rental property investments or actively involved in managing rental properties, then claiming losses on the property is legal. Just be aware it could trigger an audit.

#4: Recent Divorcees’ Tax Returns Don’t Match

Recently divorced? Make sure you and your spouse are aligned on how you are reporting information; otherwise, you could trigger an audit when your reported information does not align.

As the year draws to a close and you begin thinking about filing your 2019 taxes, look to the tax professionals at Metroplex Wealth. We do more than tax preparation; we do proactive tax planning. This means we optimize your portfolio for the lowest taxes possible, allowing you to keep more of your wealth and pass it on to the generations to come. Call us today for a consultation with our team in Southlake, Texas.

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Finance, Wealth Management

Wealth Building: 5 Ways Young Professionals Can Get Ahead

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November 11, 2019
building wealth early, north texas wealth management, tips for building wealth early, top wealth management firm south lake texas, wealth building in your 20s, wealth management, young professionals wealth management

When you’re just beginning your career, it can seem impossible to find the extra capital to begin investing or saving for anything, but getting a head start on investing in your early 20s can pay monumental dividends down the road. Here are 10 ways Metroplex Wealth recommends young professionals get ahead when it comes to building long-term wealth:

Build an Emergency Fund

Depending on your risk tolerance, an emergency fund should be somewhere between 3-9 months of living expenses on hand and liquid in case you need to access it in a pinch. Do this first before moving forward with other investment strategies.

Take Advantage of Time

As a young professional, time is on your side. Compounding is the greatest gift of an early investment – an investment opportunity that you cannot ever get back.

Take Risks

In that same vein, the longer timeframe for investments mean you can take more risks with your money. Consider talking with a wealth manager about aggressive growth funds.

Start Slow

As you’re learning the markets and the investment style that works best for you, start with a conservative amount of money and only invest that which you don’t need for everyday expenses and your emergency fund.

Use Networking to Your Advantage

If you don’t know where to start with investing and building wealth, do not be afraid to ask. Ask others what they are doing. Look to older professionals you trust and ask what their strategies are; ask which companies they invest their money with. You never know until you ask.

Are you ready to take the plunge into investing and building long-term wealth? If so, give us a call at Metroplex Wealth in Southlake, Texas – the top wealth management firm in Southlake. Each investment approach is tailored to your individual needs, ensuring we’re doing what’s best for you and your long-term financial goals. Set up a consultation today and let’s talk about building wealth now!

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