Collection of 2015-2016 infographics for the Young Professionals & Entrepreneurs Blog published by Dillon Wright at www.wrightaccountingcpa.com and www.wrightaccountingblog.com

1. Author: Dillon Wright
Domain: www.wrightaccountingblog.com
Purpose: The purpose of my blog is to share accounting, finance, marketing, and tax
knowledge with professionals and business owners of the Millennial Generation (mid-
1980s – early 2000s) and Generation X (early 1960s – early 1980s).
Background: During eight years on the staff of two CPA firms, I received thorough
training that included continuing professional education (CPE) seminars, formal &
informal mentoring programs, on-the-job exposure to client organizations, and
independent reading, research, and study.
Upon terminating my employment in June 2014, I started the CPA practice of Wright
Accounting & Consulting, L.L.C.
Objective: My goal for the “Young Professionals & Entrepreneurs Blog” is to combine
the knowledge gained from these experiences, and share it with my peers in order to
educate and build mutually beneficial relationships
About the Author
Recent Posts::
Oil & Gas Lease Taxation
August 18, 2015
Rental Real Estate: Property
Management
August 25, 2015
Slideshow: 2015 Year-End Tax
Planning
October 20, 2015
Business Formation: Limited
Liability Company (LLC)
June 10, 2015
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2. TIPS FOR MINIMIZING TAX PREPARATION COSTS
Inefficiencies in Tax Preparation Process. Inefficiencies can result from the
actions/inactions of numerous parties and for a variety of reasons. Avoid delays that
frequently arise by following these guidelines:
 Providing Complete Information,
 Organizing Tax Documents Adequately, and
 Communicating Promptly to Follow-Up Inquiries.
Primary Drivers of Tax Preparation Costs
I. Complexity of Client Activities, and
II. Inefficiencies in Tax Preparation Process
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Complexity of Client Activities. While minimizing complexities of your tax
situation is often beyond control, I offer the following suggestions for reducing
difficulties:
 Identify options for structuring a new business prior to commencement,
 Communicate changes in facts & circumstances that result from lifetime
events (i.e., marriage, child birth, death of loved one, divorce, etc.), and
 Understand and avoid common pitfalls related to unexpected changes.
BUSINESS EXPENSES
Summary List - 2012 Tax Return
Advertising 256
Meals 1,524
Office Supplies 1,256
Salaries & Wages 8,451
Taxes & Licenses 269
Total - Business Expenses 11,756
6 Tips for Minimizing Tax Preparation Costs. You can assist your
accountant in expediting the preparation of your annual returns with these six (6) tips:
1. Completeness. Review prior year tax returns to identify all sources of income and
deductions.
2. Completeness. Compare current year tax documents to income/deductions on
prior year returns, and prepare explanations for new or omitted items.
3. Organization. Utilize a “Client Organizer” to compile the appropriate information
in a manner familiar to your tax preparer. Below is a link to this document:
http://www.wrightaccountingcpa.com/?page_id=3586
4. Organization. Summarize income and expenses that are not reported on
standardized forms (i.e., Schedule C expenses, charitable contributions, etc.)
5. Communication. Issue prompt responses to follow-up inquiries from your tax
preparer (long delays can negatively affect the “rhythm” of the process).
6. Communication. Call attention to new/omitted items, potential discrepancies, or
any other item(s) you believe warrant special attention.
Organized Tax Information Vs. The Dreaded “Shoebox Receipts” (Unorganized)
Review Prior Year Returns
Lifetime Events – Tax PlanningBusiness Formation: LLCs

3. Quarterly Estimated Tax. Self-employed individuals and business owners are
generally required to remit taxes to tax agencies. This is primarily accomplished
through quarterly estimated tax payments. As a general rule, you must pay estimated
tax if both of the following apply:
 You expect to owe at least $1,000 in tax for the year, and
 You expect your withholdings and refundable credits to be less than the smaller of:
 90% of the tax to be shown on your tax return, or
 100% of the tax shown on your prior year’s tax return
For estimated tax purposes, the year is divided into four (4) payment periods. In
general, the due date for each quarterly installment of estimated tax is as follows:
Car & Truck Expenses. If you use your car or truck for business purposes, you ordinarily can
deduct expenses related to its business usage. There are two (2) methods available to choose from
in figuring your deductible expenses, as follows:
o Standard Mileage Rate, and
o Actual Car/Truck Expenses
Business Use of Your Home (Home Office). The costs associated with maintaining a home office may
qualify as a tax deduction. To qualify to deduct expenses for business use of your home, you must use part of your home:
 Exclusively and regularly as your principal place of business,
 Exclusively and regularly as a place where you meet or deal with customers in the normal course of business,
 In the case of a separate structure which is not attached to your home, in connection with your trade or business, or
 On a regular basis for certain storage use
Quarterly Installment Dates of Quarter Due Date
1st Quarter Jan. 1 – March 31 April 15th
2nd Quarter April 1 – May 31 June 15th
3rd Quarter June 1 – Aug. 31 September 15th
4th Quarter Sept. 1 – Dec. 31 January 15th
Over the last several years, I have received a number of inquiries related to the income tax requirements and responsibilities of self-employed individuals and
business owners. Several topics almost universally crop up during these discussions, as follows:
 Quarterly Estimated Tax,
 Car & Truck Expenses, and
 Business Use of Your Home (Home Office)
Common tax topics for self-employed individuals & business owners
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Actual Car/Truck Expenses
 Gasoline  Oil/Oil Changes  Licenses
 Parking Fees  Tolls  Tires
 Registration Fees  Depreciation  Insurance
 Repairs/Maintenance
Standard Mileage Rate
2014 2015
$ 0.56 $ 0.57

4. QUESTIONNAIRE: INDIVIDUAL INCOME TAX RETURNS
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PERSONAL INFORMATION Yes No
Did your marital status change during 2015?
Are you legally married?
If Yes, do you and your spouse want to file separate returns?
If Yes, will you file a joint federal return and be required to file single state returns?
Did you address change during 2015?? If yes, please provide details.
Can you or your spouse be claimed as a dependent by another taxpayer?
DEPENDENTS
Were there any changes in dependents from the prior year?
Did you pay for child care while you worked or looked for work?
Do you have any children under age 18 with unearned income more than $1,000?
Do you have any children age 18 or student children, aged 19 to 23, who did not provide
half of their cost of support and that have unearned income of more than $1,000?
Did you adopt a child or begin adoption proceedings during 2015?
PURCHASES, SALES & DEBT
Did you have any debts canceled, forgiven or refinanced during 2015?
Did you start a new business, purchase a new rental property, farm or acquire any new
interest in any partnership or S-Corporation during 2015?
Did you sell an existing business, rental property, farm or any existing interest in a
partnership or S-Corporation during 2015?
Did you sell, exchange or purchase any real estate in 2015? If so, please attach the
closing statements.
Did you pay any student loan interest in 2015?
Did you take out a home equity loan in 2015?
SALE OF YOUR HOME (Principal Residence) Yes No
Did you sell your home (i.e., principal residence) in 2015?
If Yes, did you receive Form 1099?
If Yes, did you own and occupy the home as your principal residence for at
least two (2) of the five (5) year period prior to the sale?
Did you ever rent out this property?
Did you ever use any portion of the home for business purposes?
Have you or your spouse sold a principal residence within the last two (2) years?
At the time of the sale, the residence was owned by: _Taxpayer _Spouse _Both
ITEMIZED DEDUCTIONS
Did you contribute property (other than cash) with a fair market value greater
than $5,000 to a charitable organization?
Did you incur any casualty or theft losses during the year?
Did you make any large purchases, such as motor vehicles and boats?
Did you incur any casualty or loss attributable to a federally declared disaster?
SEVERANCE/RETIREMENT
Did you retire or change jobs in 2015?
Did you receive deferred, retirement or severance compensation?
If Yes, enter the date received (Mo/Da/Yr). ________ (Date)
Did you or your spouse turn age 70 ½ during the year and have money in an IRA
or other retirement account while not taking any distribution?
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I recommend completing this questionnaire prior to submitting information to your tax preparer. Doing so can increase the likelihood of efficiently
assembling the data necessary to prepare a complete return, which can improve effectiveness in tax preparation at a lower fee cost.

5. QUESTIONNAIRE: INDIVIDUAL INCOME TAX RETURNS
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Miscellaneous Yes No
Did you or your spouse have any transactions pertaining to a medical savings
account (MSA) during 2015? If you received Form 1099-SA, please provide.
Did you or your spouse have any transactions pertaining to a health savings
account (HSA) during 2015? If you received Form 1099-SA, please provide.
Did you or your spouse contribute to a Roth IRA or convert an existing IRA
into a Roth IRA?
Did you or your spouse roll into a Roth IRA any distributions from a retirement
plan, an annuity plan, tax shelter annuity or deferred compensation plan?
Did you withdrawal any amounts from your IRA to pay for higher education
expenses incurred by you, your spouse, your children or grandchildren?
Did you withdraw amounts from a Coverdell Education Savings Account or
Qualified Education Program (Section 529 plan)? If Yes, provide 1099-Q.
Did you or your dependents incur any post-secondary education expenses,
such as tuition?
If you or your spouse are self-employed, are you or your spouse eligible to be
covered under an employer’s health plan at another job? If Yes, how many
months were you covered? _____ (No. of Months)
Did you move to a different home because of a change in your job location?
Did you pay in excess of $1,000 in any quarter, or $1,800 during the year for
domestic services performed in or around your home to individuals who
could be considered household employees?
Did you purchase a new alternative technology vehicle, including a qualified
plug-in electric drive motor vehicle in 2015?
Did the IRS or another tax agency notify you of changes in prior year returns?
Miscellaneous (continued) Yes No
Did you lose your job during 2015 because of foreign competition and
pay for your own health insurance?
Did you install any alternative energy equipment in your residence such
as solar water heaters, solar electricity equipment or fuel cells?
Did you install any energy efficiency improvements, or energy property
in your residence such as exterior doors or windows, insulation, heat
pumps, furnaces, central air conditioners or water pumps?
Have you been an identity theft victim and have you contacted the IRS?
If Yes, furnish the 6-digit identity protection PIN issued by the IRS. ___
Did you have any work outside of the U.S. or pay any foreign taxes?
Did you or your spouse serve in the military or were you or your spouse
on active duty?
Did you or your spouse claim a homebuyer credit for a home
purchased in 2008?
Did you have healthcare coverage (health insurance) for yourself, your
spouse, and any dependents during 2015?
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6. www.wrightaccountingcpa.com
Three (3) Categories of Deductible
Taxes:
1. Real Estate Taxes,
2. State/Local Income Tax OR Sales Tax,
and
3. Personal Property Taxes
STANDARD DEDUCTION
FILING STATUS AMOUNT
Single $ 6,300
Married Filing Jointly $ 12,600
Head of Household $ 9,250
ITEMIZED DEDUCTIONS
i. Medical & Dental Expenses,
ii. TAXES YOU PAID,
iii. Interest You Paid,
iv. Gifts to Charity,
v. Casualty & Theft Losses, and
vi. Job Expenses & Certain Misc.
Deductions
When filing individual income tax returns, you have the option to itemize deductions or take
the standard deduction, as follows:
The “Taxes You Paid” are subdivided into three (3)
types of deductible taxes, as listed below:
Real Estate Taxes – Taxes you paid on real
estate (i.e., your home & other land/buildings) not
used for business can be deducted in the year
paid.
Personal Property Taxes – A deduction is allowed for state and local
taxes on personal property (i.e., your automobile & other tangible property
other than real estate) if the tax was based on value alone.
State/Local Income Tax OR Sales Tax – Income taxes paid to
state and local municipalities represent are deductible on Schedule A.
You have the option of deducting state and local sales taxes in lieu of
income taxes, should this provide a greater deduction.

7. Deducting interest paid
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Mortgage Interest Home Equity Interest Investment Interest
If you have borrowed money to buy, build or improve
your home, you can deduct some or all of the interest
you paid in 2015.
In addition to home acquisition debt, interest paid on
home equity debt may also be deductible. Interest
paid on loans secured by your home, but not
necessarily used for any specific purpose, is deductible
on balances up to $100,000 ($50,000 for married
taxpayers filing separately).
If you borrow money to make investments,
the interest paid on the loan may be
deductible.On ScheduleA, investment
interest is deductible up to the amount of
taxable investment income you report.
Among the itemized deductions on Schedule A of IRS Form 1040, you will find “Interest You Paid.”
You may be able to deduct interest on debt arising from your mortgage, home equity line-of-credit (heloc),
and investment activity.
Want to learn more?
View the complete article at
http://www.wrightaccountingblog.com/2016/02/deducting-interest-paid
A “home” can be a house or an apartment – even a
trailer or a boat, as long as it has cooking, sleeping
and toilet facilities. You can deduct the interest on
two such homes.
Examples of Investments Financed w/ Debt:
 MarginAccounts w/ Brokerage Firm
 Tract of LandYou Intend to Sell at a Profit