I always have my tax return done by a tax service.  Is that okay?
Licensed tax preparers are required to have continuing education to keep up with the latest tax laws, so they may find deductions an individual would not know is allowed.  But, they don't help you with your other accounting and financial needs:  tax and estate planning, investing, etc.

I'm starting a business.  Should I be an LLC or Corporation?
This really depends on the type of business you are starting, and after collecting specific business information from you, you're accountant can walk you through the pros and cons of each.  An LLC and a Corporation will provide you with limited liability treatment, but most small businesses will benefit from the S Corporation tax treatment rather than the LLC.

I sold my house this year.  What tax deductions can I take?
Married taxpayers that have lived in their principle residence for at least two out of the last five years are entitled to a $500,000 exemption of profit when their home is sold.  Single taxpayers are entitled to a $250,000 exemption.  Profit includes all appreciation minus fix up, rennovations, improvements and closing costs.

What are my chances of being audited by the IRS, and what kinds of things are they looking for?  If I am audited, do I handle it or do you?
We will represent our clients if they are audited.  You do not need to be present.  The audit rates for the past few years have been below 1%.Current bulletins indicate the IRS will be looking at S Corporations in the current year.

Who needs estate planning and when's the best time to get started?
A decedent's estate is considered taxable if the fair market value of the estate, after deductions, exceeds 2 million dollars.  Many states follow federal guidelines, but Maryland, Virginia and the District of Columbia do not and have capped the fair market value of an estate at a lower dollar value.  Estate planning helps reduce the tax burden by using creative methods to shift some of the tax burden to other sources.

I just started working.  Should I open an IRA, or enroll in my company's 401k plan?
If available, always contribute to your company's 401k plan.  Usually, a 401k provides a greater opportunity to save for retirement since you can contribute more to a 401k than an IRA.  Also, many companies also match part of your contribution which further increases retirement savings.

My company provides health insurance, but should I also have a flex spending plan?
Flex spending accounts are great since they allow you to use pre-tax dollars for child care, health care, etc.  These accounts are usually set up on a yearly basis for easy planning.  Make sure you understand all the rules, administrative fees and requirements of your plan.

Besides doing my taxes, what else does an accountant do?
Lucas, Moreland & Associations provides accounting, tax and financial planning.  We look at the "big picture" of our client's financial lives so that we can be creative and innovative when it comes to your planning and investing needs.