Income Taxes Explained in Plain English by your Virtual CPA

San Francisco CPA Ying McKee started the boutique accounting firm Virtual CPA for You with the small and medium-sized business and professional clients in mind. Her goal has always been to provide her clients with the highest level of technical expertise with personalized service. 

I have always seen me and my clients as a partnership. Successful people always surround themselves with the best bankers, attorneys, and certified public accountants and  I would like to be part of the circles for their business and family and someone whom they can trust to ask questions.  I generously care about the success of my clients and want to give them the best advice possible based on my years of experiences and continuing education and research.

Very often I get tax and accounting questions from clients, associates, acquaintance, friends and even strangers. I do not believe to be stingy about knowledge. Since some of the questions have been asked by multiple people, I decided to address the issue by explaining the income taxes in plain English.

 

This has been proven to be a popular choice.  The Q and A sessions, the articles, and blog session have become a space to give tax advice and tips, a place to communicate the latest news and development in accounting, tax, and business. 

Please drop me a note if you have any questions. 
 

Tax and Accounting Articles
 

How GOP Tax bill impact San Francisco bay area and Beyond

December 23, 2017

Highlights of some of the critical changes that will impact many in San Francisco bay area and beyond.  this IS NOT a complete list of the bill.

What's in Trump's Tax Reform? (Individual)

 

October 05, 2017​

 

From the current proposal,  families in the existing 10 percent bracket will be better off. However, right now, the GOP framework is so vague, it's hard to tell if middle-income class people will be better off and if so, how much better off. We will have to wait and see.

State Tax Burden between California and Texas

September 22, 2017

Too Expensive in Living in California? Let's compare state tax burden between California and Texas.

Ask for tax-advantaged benefits from your employer

August 17, 2017

Other than the regular pay, don't forget to ask your employer about the  tax-advantaged benefits such as 

 Dependent Care Benefits, Health Care Insurance, 401(k) or Similar Retirement Plans, Tax-Free Fringe Benefits etc

Health Saving Account(HSA)- Retirement tax saving tool better than Roth and IRA

 

August 29, 2017

 

Contributions to the HSA  are pre-taxed. Tax-free distributions, when used for qualified medical expenses.   Tax-Free investment earnings and compounding and act as a superior IRA after 65. Portable and Rollable.

Common Errors Seem in 1040 filing

May 18, 2017

Common errors found in 1040 tax returns such as dependents errors, failure to report sales activities IRS already knew, passive activity loss deduction error etc.

Seven crucial questions to ask when looking for a tax accountant

May 02, 2017

Seven crucial questions to ask when looking for a tax accountant such as license, experience, availability, turnaround time, security, etc.

Odds of Being Targeted by the IRS for Audit

 

August 20, 2017

 

Every year, the IRS releases the “Data Book,” which describes activities conducted by the IRS during the prior Fiscal Year. It provides, among other things, information about how many tax returns the IRS examined (audits), how it examined them and what categories of returns the IRS focused its resources on. The most recent Data Book includes audit data from the fiscal year 2016.

 

Last minute tax planning

 

December 20, 2017

 

If your tax bracket is expected to be lower in 2018, check out our ideas to defer income and accelerate deductions in 2017. If you expect the opposite, there...

 

Should I ignore those IRS(or FTB) notices?

 

April 20, 2017

 

Why do I get those letters? Please do not ignore the letters but also do not automatically pay as requested. Quite often, you really do not owe the amount being billed....

 

Taxes Made Simple

March 20, 2017

Tax filing is usually stressful whether you engage a CPA or opt to do it yourself. Here are some tips to help take the pressure off during this process.

 

Taxes Made Simple

March 20, 2017

Tax filing is usually stressful whether you engage a CPA or opt to do it yourself. Here are some tips to help take the pressure off during this process.

 

Tax and Accounting Questions Answered
 

  • We are thinking about buying a house and rent it out. The cash flow is excellent, but we are worried about the tax consequence. Any tip?

  • We do not have any payroll this year. Should we still file payroll tax returns?

  • Our income is too high to qualify Roth contribution.  I heard that you could contribute to a nondeductible traditional IRA  and then later convert to Roth. Since you had not deducted the contribution, there'll be no "penalty" for any types. Is this too good to be true?​

 

  • My wife just started a small printing business as a single-member LLC. She just bought over $100K worth of equipment.  Is she able to use section 179 to write off $100k in one year even the first year there is very little business income?  I have a regular salaried job with over $200k/year pay.

  • On 1031 exchange, I want to trade mine five single-family homes(used for rental) to 1 large duplex(will be a rental). Duplex has the bigger value. Will the exchange be tax-free?

  • My husband and I both put down "married" and "no allowance" on W-4, but we still owe so much taxes at year end. Why?​

  • We are going through a divorce. My husband lost his job several months ago.  Due to this hardship, is there an exception to the 2-year rule to home sale gain exclusion?

 

  • My dad bought a house for me and paid the downpayment. Since my credit is not good enough, the loan is under his name. However, I am living there and making all the mortgage payments. Can I deduct the mortgage interest? 

  • I am US citizen living overseas. I received a notice from the IRS  informing me that I was due a refund check.  But after one month, there is still no check. What should I do? 

  • I have received multiple phone calls saying that I owe IRS money and they sent certified letters to me but they were undeliverable. They demand money to be paid right away using a wire transfer.   I am very worried. What should I do?

  • I just got married to a British girl and we both are still living and working in England. We plan to move back to the States next year. What do I do with our taxes? 

 

The articles  are for general information only. In accordance with IRS Circular 230 they are not considered tax opinions for purposes of relying on such statements in any challenge of the reporting of the above transaction by the IRS. If a full tax opinion is required certain procedures must be met . Also there is a significant cost for a full tax opinion to meet the requirements of Circular 230.ragraph. Click here to add your own text and edit me. It's easy.

  • We are considering replacing all our old business vehicles. Should we trade-in or sell the old ones?

  • I have rental properties in several different states. Do I need to file multi-state tax returns?

  • Can I deduct the cost of the computer and monthly internet fee as qualified college expenses?

  • My in-laws live in Japan and come to California to live with us 4 months  of every year. We pay for all their living expenses in Japan and US. Can I claim them as dependents?

 

  • I'm married but I want to file my taxes as married filing separately to keep our finance separately. Can I do that?

  • My son has been diagnosed with dyslexia and we are planning to enroll him in a special program at his school to help him deal with his condition. Will the tuition cost for the program deductible?

  • How long will take to get my income refund?​

  • I am cleaning my garage. Should I throw away my old tax records? I still have mine tax records from 10 years ago.

 

  • I am about to retire and receive social security. Is Social Security taxable?

  • I have a small unincorporated business and I heard hiring the kid might have great tax benefits. What are those?

  • How much can you write off if I buy a brand new SUV with GVWR over 6000lb in 2017? I use it 100% for my business.

  • I need the cash to buy inventory right now and don't want to pay estimated taxes. I will pay all mine taxes next April 15th. What's the consequence?

 

 

  • Do I need to pay CA tax even if I have a Nevada company?

  • United Nations Joint Pension Fund(UNJSPF) is a fund established to provide retirement, death, disability and related benefits for staff of the UNs. Is the benefit from the fund taxable?

The articles  are for general information only. In accordance with IRS Circular 230 they are not considered tax opinions for purposes of relying on such statements in any challenge of the reporting of the above transaction by the IRS. If a full tax opinion is required certain procedures must be met . Also there is a significant cost for a full tax opinion to meet the requirements of Circular 230.

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San Francisco, CA

94133-4501

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San Francisco, CA94115