Choosing the appropriate ownership vehicle is an essential step for foreign investors building their portfolio with investments in the United States. A good fit offers advantages in several financial areas, not least of which are tax-related. Even so, investing as a corporation rather than an individual carries certain risks; working with an accountant experienced in foreign investment tax returns in Bellingham, MA is the best way to enjoy these benefits while avoiding costly missteps. Ann Irons, a certified public account who prepares tax returns, explains.

As a foreign investor pursuing opportunities in the United States, partnering with a licensed, registered CPA (certified public accounting) has several advantages. Even seasoned investors find that navigating tax reporting requirements is time-consuming and complicated; even a single error can have serious repercussions from both a legal and financial standpoint. Ann Irons, a Bellingham, MA tax accountant, introduces a few of the most basic requirements and essential documents. 

Time is money, and incorporating the right technology into your practice management saves both. A certain degree of involvement is required of every case file, but much of this time could be used more productively by focusing on the case itself, not the administrative tasks that go into its maintenance. Certified public accountant Ann Irons shares money-saving strategies and recommendations for legal accounting in Bellingham, MA.

These days nearly everyone seems to have found a way to tap into the collective power of the crowd, a practice known as crowdsourcing. The idea behind crowdsourcing is that hundreds, even thousands of individuals can work together to solve a problem, complete a project, and generate new ideas. Crowdfunding — Kickstarter is a good example — is a growing trend among foreign investors, says Ann Irons, a Bellingham, Mass. CPA who prepares taxes for foreign investors in the US, shares the details.

How can foreign investors benefit from crowdfunding?

Many foreign investors lack the resources and access to pursue some of the more costly opportunities, especially large commercial real estate properties. Enter crowdfunding, which aligns various investors to capitalize on lower minimum investments as a group, giving them the ability to invest in these previously inaccessible opportunities. Realty Mogul is currently one of the most popular crowdfunding platforms, but several other options are available; the number of similar services is expected to increase.

Client trust funds are a potential source of contention in any legal specialty, and real estate law is no exception. Ann Irons, an experienced CPA who offers escrow accounting in Bellingham, MA, shares tips for avoiding costly trust account violations.

Under the right circumstances, outsourcing saves time and money. This doesn’t mean it’s always the best option. Ann Irons, CPA shares tips to help real estate lawyers choose whether to outsource important business functions, such as outsourced accounting in Bellingham, MA.

Commonly Outsourced Business Functions

Until recently, accounting and bookkeeping were the only functions that business owners and practice managers considered appropriate for outsourcing. Today, there are far more opportunities to outsource, including:

• Web design and social media
• Payroll
• IT and tech support
• Marketing
• Risk management
• Reception and secretarial

Opportunities in the United States have drawn investors from across the world in search of lucrative stocks and securities.

As an investor and resident of another country, you may find it helpful to learn how you can grow your portfolio while minimizing tax costs.

Ann Irons, a CPA who handles international tax returns in Bellingham, MA, explains how tax treaties benefit foreign investors by reducing the amount of tax paid on their US investments. If no treaty exists between your country and the US, your income will be subject to the full rate of 30 percent.

Practicing law and managing a practice are two separate functions, neither of which leaves room for error.

The more precautions you take to perform well in the latter, the more freedom you are given to focus on the former. Ann Irons, who offers accounting for Bellingham real estate lawyers, discusses the importance of timeliness and efficiency in managing your practice’s accounting functions.

Time Is of the Essence: What It Means in a Court of Law

You may recall the 2002 case Owen v. Kessler in which the “time is of the essence” clause was put to the test when a real estate broker failed to deliver a would-be buyer’s signed purchase and sale agreement within the allotted time frame. A second interested party filed a backup offer contingent on the failure of the first buyer to complete the purchase. Both prospective buyers filed suit against the seller, at which point the Superior Court sided with the first buyer. The ruling was ultimately reversed in Appeals Court in favor of the second buyer. The delay that set it all in motion? 15 minutes. The reason for the delay? The broker responsible for delivering the agreement reasoned that because the document’s destination was only four minutes from his office, there would be no problem delivering it on the very last day of the agreed-upon two-week period.

Fifteen minutes doesn’t sound like too much of a delay. It’s not uncommon to be late to work by 15 minutes every now and then, or for the bus to arrive 15 minutes late. But when you’re talking about a legal obligation, 15 minutes can do a great deal of damage. By the time the Appeals Court’s decision was handed down, all parties had incurred thousands of dollars in expenses and countless lost hours.

Whether you’re an individual or a business owner, few things strike fear into your heart like learning that you’re being audited by the IRS. The good news? Those budget cuts that have plagued our government may actually work to your advantage. It seems that even the Internal Revenue Service has felt the pinch, and as a result its audit rates are lower than they’ve been in years. Even so, says Ann Irons, who offers business tax preparation in Bellingham, MA, this doesn’t mean you should let your guard down.

Which Businesses Are Most Likely to Be Audited?

The IRS isn’t exactly forthcoming with details of its audit algorithm, but data from Tax Court cases suggest that certain types of businesses and select tax return items are more likely than others to come under fire. These include:

Home offices: Whether deliberately or otherwise, the write-offs for home offices are among the most commonly miscalculated or misreported figures on federal tax returns. The majority of these are errors in the area designated as “regularly and exclusively” used during the course of business. If you run your business from your home, your CPA can advise you on which expenses are eligible.

Substantial vehicle write-offs: Section 274 of the tax code sets forth guidelines for eligible entertainment and miscellaneous expenses, and that includes the use of their vehicle. A common, glaring error is deducting the full 100 percent of their vehicle use as business-related. The requirements to do so are extremely narrow, and the vast majority of taxpayers cannot rightfully claim this. Of those who do meet the requirements, few have kept records sufficient to justify their claims.

Real estate rentals: If you devote a minimum of 500 years to rental real estate functions, or if you have done so for 5 of the 10 previous years, you qualify under the tax code as a real estate professional. Because this area is commonly audited, says Irons, it’s in your best interest to keep detailed records of the hours you spend on these activities, as well as a brief description of how the time was used.

Schedule C losses: Most of the time, the Internal Revenue Service classifies Schedule C activities as hobbies rather than as businesses. The rule applies particularly to activities that would afford some personal benefit or enjoyment factor, such as photography or writing about subjects like food or travel. Most suspicious are returns that reflect a higher than average salary or business income.

Smaller companies: It almost seems like a case of “picking on the little guy,” but the IRS has fairly good reasons for frequently auditing small firms. Whether by willful ignorance or honest error, small businesses owners often lack the comprehensive understanding of tax laws needed for full compliance. They’re also less likely to keep thorough records, a fact that clearly justifies the need for an experienced outsourced accounting firm. If you deal almost exclusively in cash – no checks or credit – you are even more likely to be audited.

Travel, business meals, and entertainment: Woe is the business owner who misreports these expenses on his tax return, for the IRS comes down hard on this category. Requirements in this area are even more restrictive than those of home office expenses. Compounding the risk is the knowledge that small businesses are less likely to have adequate documentation, as well as the potential for illegal deductions of entirely non-business-related personal expenses.

Are you prepared for an audit? If not, it’s time to consider enlisting the services of a Bellingham, MA CPA. To learn more about our services, or to schedule a consultation with Ann Irons, CPA, LLC, contact us at (508) 966-0700. We serve businesses and individuals in Bellingham, Milford, Medway, Worcester, and Woonsocket.

Target. Sony PlayStation. AOL. All are powerful corporations and brands with revenues in excess of billions, and yet all have fallen prey to security breaches, compromising their customers’ financial and personal information. Ouch. Maybe your business doesn’t bring in millions (at least, not yet) but it would be unwise to assume that the modest size of your company makes you invisible to similar threats. CPA Ann Irons, whose Bellingham, MA accounting office offers a variety of small business services, explains the importance of protecting your customers’ important data – and their trust.

Small Businesses Are at Risk

Although these incidents and others have been widely publicized, the truth is that most small-time criminals are more comfortable targeting smaller businesses than large corporations. In fact, a 2012 report shows that approximately 31% of all cyber attacks – criminal acts undertaken via the internet or another network – were aimed at small businesses with less than 250 employees. Worse yet, this was almost a 10% increase over the previous year.