In each episode of the ACap ReCap, we go beyond the blog to answer your financial questions. Ara & Matt explain if you should be paying estimated tax payments based on your income source, when to make those payments to the IRS, and the important  tax planning information you need to know.

Just as we are starting to comprehend the Tax Cuts and Jobs Act, the IRS might be adding some new tax forms to use in 2019. Earlier this month, the IRS released several new draft tax forms for 2019. While the list of draft forms was long, the most notable forms are the 1040 and a new 1040-SR for seniors age 65 or older. 

Location, Location, Location--the most important factor in real-estate investing can help you qualify for a generous tax break. In our first CPA Roundtable discussion, ACap's Ara Oghoorian is joined by Andrew Barnett of Boroda Holm, and Steve Post of Weiss Accountancy, to discuss the basics behind Opportunity Zones, their tax implications, and how they impact real estate opportunities for business owners.

In today’s competitive job market, where the top companies are competing for the top talent, employers use every tool at their disposal to attract and retain the best of the best. More and more often, these compensation packages go way beyond salary and factor in other employee benefits, such as top of the line health insurance plans, a 401(k) plan with a company match, and for those in the more senior roles, shares of company stock in the form of Restricted Stock Units.

In each episode of the ACap ReCap, we go beyond the blog to answer your financial questions. Ara & Matt explain the key differences between a Roth IRA and Traditional IRA, and how they can benefit you.

Do you own or want to own rental real estate? Are you taking advantage of the recent tax reform to minimize your tax liability?

In recent years, more and more investors are selecting Exchange Traded Funds (ETFs) over mutual funds. But what exactly is an ETF, and how do they differ from the traditional mutual fund? Modern Portfolio Theory (invented by Nobel laureate Harry Markowitz) states that in order to minimize risk, investors should hold a portfolio of many uncorrelated (unrelated) stocks, similar to the expression “don’t put all of your eggs in one basket.” The problem with MPT is that the average investor would need a lot of money and time to create such a diversified portfolio. Mutual funds and ETFs solve this limitation by allowing investors to gain immediate diversification by combining their funds together.

With the passage of the Tax Cuts and Jobs Act (TCJA) of 2017, many real estate investors are wondering whether rental income qualifies for the generous, yet confusing, section 199A deduction against Qualified Business Income (QBI). The answer is it’s not 100 percent clear, but the general consensus among tax practitioners is that income from rental properties will be deemed QBI and qualify for the deduction. Of course, there are always exceptions. The new section 199A deduction is limited to QBI generated from a qualified trade or business within the United States. Real estate ownership and its associated rental income is generally considered to be a passive activity.  Therefore, the question is, if you own rental real estate, are you operating a trade or business to benefit from the deduction or are you just a passive investor?

This week, a lot of Americans received a gift from the Federal Government, as the IRS announced that it will waive the estimated tax penalties for those who underwithheld taxes in 2018. There are some limitations to this gift, but such a waiver could end up saving Americans a lot of money in additional tax penalties.

Are you a business owner who recently received a letter from the City of Los Angeles claiming you owe tax on your total revenues? If you operate a business within the City of Los Angeles, you must file a Business Tax-Registration Certificate (BTRC) each year regardless of whether or not you generated any revenues. The tax is due on the gross receipts of your business, which is the total revenues you collected before deducting any expenses. City of Los Angeles Business tax postcards were recently mailed and the business tax is due on February 28th of each year (29th if it’s a leap year). This tax is in addition to sales tax, state income tax, and the unsecured property tax imposed by the County of Los Angeles.