Effective November 2021, Xero has increased the subscription rate by $2.00. Therefore you will see this increase reflected in your November 2021 payment. Xero has added and enhanced various financial reports, please click below to view the video(s). Full Price $34 which includes HUBDOC

Xero Announcement – New Management Reports

Start 3:04 to 6:21

https://youtu.be/Y91u2OmHWT0

Xero Analytics Plus | Xero Announcements

[Cash Flow Reporting]

https://youtu.be/LTGhqZvxBwQ

Please click on the Xero Logo above to view DCP's Message.

2021 Year-End Planning

We are quickly approaching the end of the fiscal year! Please remember to schedule or request your FYE 2021 tax projection. What do you need to do?

1. Send an email requesting a projection
2. Upon completion - I will send you a meeting invitation to discuss (review).

Remember, you must make your full tax liability on or before April 15, 2022, to avoid a late payment penalty.

2021 Federal Income Tax Brackets and Rates

Single Individuals For Married Individuals

Filing Joint Returns

10% Up to $9,950 Up to $19,900

12% $9,951 to $40,525 $19,901 to $81,050

22% $40,526 to $86,375 $81,051 to $172,750

24% $86,376 to $164,925 $172,751 to $329,850

Standard Deduction

Congress nearly doubled the standard deduction in the 2018 tax year and mandated that it be increased each year for inflation. The standard deduction for the 2021 tax year is $12,550 for single taxpayers, up $150 from 2020, and $25,100 for married couples, up $300 from 2020.

Click on the photo to view a video!!

IRS Red Flags

1. Non Cash Contributions - That's because the IRS knows what the average charitable donation is for folks at your income level. Also, if you don't get an appraisal for donations of valuable property, or if you fail to file IRS Form 8283 for noncash donations over $500, you become an even bigger audit target. And be sure to keep all your supporting documents, including receipts for cash and property contributions made during the year.
2. Making Money - The overall individual audit rate may only be about one in 250 returns, but the odds increase as your income goes up (especially if you have business income). IRS statistics for 2019 show that individuals with incomes between $200,000 and $1 million had up to a 1% audit rate (one out of every 100 returns examined). And 2.4% of individual returns reporting incomes of $1 million or more were audited in 2019. We're not saying you should try to make less money — everyone wants to be a millionaire. You just need to understand that the more income is shown on your return, the more likely it is that the IRS will be knocking on your door. [USE HUBDOC]
3. Claiming Real Estate Losses - The passive loss rules usually prevent the deduction of rental real estate losses, but there are two important exceptions. First, if you actively participate in the renting of your property, you can deduct up to $25,000 of loss against your other income. This $25,000 allowance phases out as adjusted gross income exceeds $100,000 and disappear entirely once your AGI reaches $150,000. A second exception applies to real estate professionals who spend more than 50% of their working hours and over 750 hours each year materially participating in real estate as developers, brokers, landlords or the like. They can write off rental losses. The IRS actively scrutinizes large rental real estate losses, especially those written off by taxpayers claiming to be real estate pros. It's pulling returns of individuals who claim they are real estate professionals and whose W-2 forms or other non-real estate Schedule C businesses show lots of income. Agents are checking to see whether these filers worked the necessary hours, especially in cases of landlords whose day jobs are not in the real estate business.
4. Automobile - When you depreciate a car, you have to list on Form 4562 the percentage of its use during the year that was for business. Claiming 100% business use of an automobile is red meat for IRS agents. They know that it's rare for someone to actually use a vehicle 100% of the time for business, especially if no other vehicle is available for personal use. The IRS also targets heavy SUVs and large trucks used for business, especially those bought late in the year. That's because these vehicles are eligible for more favorable depreciation and expensing write-offs. Be sure you keep detailed mileage logs and precise calendar entries for the purpose of every road trip. Sloppy recordkeeping makes it easy for a revenue agent to disallow your deduction. As a reminder, if you use the IRS's standard mileage rate, you can't also claim actual expenses for maintenance, insurance, and the like. The IRS has seen such shenanigans and is on the lookout for more.
5. Engaging in Virtual Currency Transactions - The IRS is on the hunt for taxpayers who sell, receive, trade or otherwise deal in bitcoin or other virtual currency and is using pretty much everything in its arsenal. As part of the IRS's efforts to clamp down on unreported income from these transactions, revenue agents are mailing letters to people they believe have virtual currency accounts. The agency went to federal court to get the names of customers of Coinbase, a virtual currency exchange. And the IRS has set up teams of agents to work on cryptocurrency-related audits. Additionally, all individual filers must state on page 1 of their Form 1040 whether they received, sold, exchanged, or disposed of any financial interest in virtual currency. The tax rules treat bitcoin and other cryptocurrencies as property for tax purposes. The IRS has a set of frequently asked questions that address selling, trading, and receiving cryptocurrency, calculating gain or loss, figuring tax basis when the currency is received by an employee or someone else for services, and much more.
6. Failing to Report a Foreign Bank Account - The IRS is intensely interested in people with money stashed outside the U.S., especially in countries with the reputation of being tax havens, and U.S. authorities have had lots of success getting foreign banks to disclose account information. Failure to report a foreign bank account can lead to severe penalties. Make sure that if you have any such accounts, you properly report them. This means electronically filing FinCEN Report 114 (FBAR) by April 15 to report foreign accounts that combined total more than $10,000 at any time during the previous year. (Filers who miss the April 15 deadline get an automatic six-month extension to file the form.) Taxpayers with a lot more financial assets abroad may also have to attach IRS Form 8938 to their timely filed tax returns.

Planning For Tomorrow.

We recently were informed by Devonte Ivory that he is no longer going to be an independent Financial Advisor. As you know we work with various financial advisors. As we enter the last quarter of the year if you have failed to establish a 401K simple or SEP LETS GET IT DONE NOW! If you want any financial advisors' referrals, please ask. Click on the photo to watch the video - Meet Ali Bouasavatdy.

Jason Page - Partner @ New York Life

As a financial professional at New York Life in Charlotte North Carolina, he helps families achieve the financial security they need and desire. 

6100 Fairview Rd, Ste 400 Charlotte, NC 28210

Social Security Limit Increase

For 2022, the FICA tax rate for employers is 7.65% — 6.2% for Social Security and 1.45% for Medicare (the same as in 2021). For 2022, an employee will pay: 6.2% Social Security tax on the first $147,000 of wages (6.2% of $147,000 makes the maximum tax $9,114), plus!! (REMEMBER FYE 2021 Limit is $142,800)

Global Vocations School - Ask 4R Help

Global Vocational Training Center is a NCCER (National Center For Construction Education and Research). Certified Trainer. GVTC training involves extensive hands-on skills training. GVTC Skills training, which gives the student field knowledge and confidence. GVTC has been in business for 3 ½ years and seeking your support. They are asking for sponsors, which you will be given Contribution letter from Sword of Spirit Outreach [SOSO]. SOSO is the nonprofit, which will ensure you have a tax-deductible contribution. It cost $7,900 per student. Any contribution is appreciated. If interested, please contact Joyce with DCP.