PLANNING FOR THE FUTURE

Planning for the tax effects of sales, distributions, purchases and other events is more important than ever. For example, the correct naming of a beneficiary on an IRA account can save thousands of dollars in taxes down the road. The timing of a stock sale or converting an IRA to a Roth are issues that you might have. Tom can help you with these and many other questions.

When it comes to structuring a plan to maintain your assets through your lifetime and then transition assets from one generation to the next, Tom can work with your attorney and financial advisor to maximize the tax savings.

The economy has created challenges for all of us. The negative financial effects from the Covid-19 pandemic are everywhere. If you have questions about the various government programs that are available to address these effects, please let us know. We have worked with many individuals and organizations to assist in their evaluation of and participating in these programs.

If you have a home you have purchased or inherited and want to sell it but can't, have you considered converting it to a rental? Have Tom show you the tax advantages of doing that.

PROFESSIONAL TAX RETURN PREPARATION

We can prepare most federal income tax returns and most state, city, and territory income tax returns.

We are in the information business and are committed to being a resource for our clients on all matters of accounting and taxes. We encourage our clients to call us with questions or problems as soon as they arise. We do not bill our clients for short phone calls or brief meetings and the initial meeting is at no charge.

DO NOT IGNORE THE IRS

If you receive a written notice from the IRS the worst thing you can do is ignore it. Keep in mind that the IRS never calls, emails or appears in person to tell someone they owe more taxes. Respond to the notice as soon as possible or call your tax adviser.

But if you have received a notice or notices from the IRS and for whatever reason have not responded or have not filed a tax return or returns, you should still contact the IRS to begin the resolution process.

We have worked with other taxpayers in situations similar to yours over the years and may be able to assist you in resolving your IRS problem.

Call us to find out if we can help.

COMMON INTEREST REALTY ASSOCIATION AUDITS

In the United States, CIRAs are required by generally accepted accounting principles to follow fund accounting and disclose certain information regarding the estimated costs of future major repairs and replacements and the funding of such costs. Fund accounting allows the separation of account balances and transactions between the operating and the reserve accounts. Reserve accounts are often set up based on a reserve study of the nature and costs of future major repairs and replacements.

A CIRA may choose or be required to have a Certified Public Accountant (CPA) perform procedures on its year end financial statements. These financial statements are usually prepared following generally accepted accounting principles. They typically include a balance sheet, income statement, statements of changes in fund equity and cash flows, notes to the financial statements (footnotes) and required supplemental information on future major repairs and replacements.

The CPA can perform three different types of engagements on the year end financial statements depending on the desires of the CIRA and any contractual or legal requirements. Those engagements are a compilation, review or audit. In a compilation the CPA takes the financial information provided by CIRA management and puts it into the form of financial statements without providing any assurance that the information is not materially misstated. In a review the CPA performs analytical and inquiry procedures to provide limited assurance that the financial statements are not materially misstated. In an audit the CPA performs sufficient procedures to allow him or her to express an opinion that the financial statements are not materially misstated.

The reserve accounts and the required supplemental information mentioned above related to repair and replacement costs brings up a second State of Florida requirement. For home owner associations, a reserve study and the funding of reserve accounts is elective. However, if the home owner association chooses to not have a study and/or not fund a reserve requirement, the notes to the yearly financial statements mentioned above are required to disclose this decision. And if a funding level less than that required by Florida law is actually used, that is required to be disclosed as well.

Condominium associations are required to do a reserve study and to fund the resulting reserve requirement. Florida statutes section 718.112(f) 2. states: the amount to be reserved shall be computed by means of a formula which is based upon estimated remaining useful life and estimated replacement cost or deferred maintenance expense for each reserve item. Variations from this requirement are required to be disclosed in the footnotes to the financial statements.

The firm of Thomas E. Singleton, CPA LLC has extensive experience providing professional accounting services to CIRAs in Florida and the U.S. Virgin Islands. We can work with you to help you meet the requirements of reporting under both generally accepted accounting principles and Florida statutes. In addition, we can provide you these services at an affordable price from our convenient location in central Florida. Please contact us if you would like more information or a quote.

The State of Florida requires certain condominium and home owner associations to make financial statements available within 120 days of the end of the fiscal year. Other rules apply but here are the basics: