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Take Charge of your Tax Return

What you’ll get out of today

  • Learn a better way to approach taxes
  • How to review your personal return

The contents of this meeting are for informational purposes only and do not constitute financial, accounting, or legal advice. We cannot promise that the information shared in this meeting is appropriate for you or anyone else. By continuing in this meeting and using the provided templates, you agree to hold me, Ark Financial Holdings, Ark Academy, and Jane, harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information discussed. It is up to you to implement the methods shared in this meeting. This meeting is being recorded. Please respect the privacy of other individuals in this meeting and do not ask questions or share information that you do not wish to be made public. This presentation and information provided are affiliated with services provided by Ark Family Office, LLC, Ark Academy, LLC, and Ark Wealth Management, LLC. 

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About Me

  • First-generation entrepreneur
  • 20+ years as a corporate America business manager in high tech industry
  • Started 3 companies (sold 1 in 2018, 2 are still operating)
  • Strong background in personal and business finance
  • Previously a private Family Office Advisor to 5 High Net Worth (HNW) families
  • Currently a Family Office coach in Ark Academy to over 103 business owners
  • Live in Austin, TX
  • Married with 3 kids
  • Enjoy sailing, Pilates, nature, health, family, and faith

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The Tax Calendar

Business returns due

(S corp, partnerships) (K-1 issued)

Extension due

Personal returns and C corp business returns due

Extension due

True-up due

Business returns due (S corp, partnerships) if extended

Personal returns and C corp business returns due if extended

Quarterly estimated payments due

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Factors to Consider for Filing Extensions

  • Do you need to get a tax return for a on-tax activity (e.g. get a loan, sell the business, etc)?
  • Are you getting money back?

Pros of Filing an Extension

  • Take appropriate time for each task required for an accurate timely filing
  • CPA is less likely to make a mistake because they’re not burning midnight oil
  • Enough reviews to catch missing items

Cons of Filing an Extension

  • You still have to pay your “True Up” in April without filing
  • Easy to procrastinate

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Guaranteed Problems

“Fire and Forget” Approach

CPA sends you list of documents you need to collect

You send the documents

CPA sends you the draft return

You sign

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A Better Approach

Filing your Taxes is a Mini-project of Collaboration between you and your CPA

Plan

Starts with a plan

Gather documents

Draft the return

Review draft

Finalize

File

You sign

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A Better Approach

Filing your Taxes is a Mini-project of Collaboration between you and your CPA

Plan

Starts with a plan

Gather documents

Draft the return

Review draft

Finalize

File

  • Communicate changes
  • List of needed tax documents
  • Task timelines

You sign

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Planning Steps

What’s Changed Since Last Year

  • New entities?
  • New business?
  • Purchase real estate?
  • Purchased big equipment?
  • New sources of income?

Document List

  • Business
    • Profit and Loss for your businesses
    • Balance sheet for your businesses
    • Receipts for major purchases
  • Personal
    • Estimated tax payments made
    • W-2s, 1099s
    • 1098 (mortgage)
    • K-1s, charity

Available FREE Templates

  • Tax document checklist
  • Tax filing mini project plan

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A Better Approach

Filing your Taxes is a Mini-project of Collaboration between you and your CPA

Plan

Starts with a plan

Gather documents

Draft the return

Review draft

Finalize

File

  • Stick to your schedule (finish on time)
  • Double check you didn’t miss anything
  • Upload documents and name them in a useful way

You sign

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A Better Approach

Filing Taxes is a mini-project of collaboration between you and your CPA

Plan

Starts with a plan

Gather documents

Draft the return

Review draft

Finalize

File

  • Your CPA does this
  • Hold them to the schedule

You sign

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A Better Approach

Filing Taxes is a mini-project of collaboration between you and your CPA

Plan

Starts with a plan

Gather documents

Draft the return

Review draft

Finalize

File

  • Think of this as a team effort
  • Expect some questions/back and forth
  • Focus on the most important items

You sign

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Reviewing your Personal Tax Return

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Your Typical CPA Tax Package

100+ pages of pure bliss

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Your Typical CPA Tax Package

What makes up that 100+ page PDF from your CPA?

Letter saying “thanks” and outlining next steps

Summary

year-over-year comparison

Quarterly Estimated Tax Payment coupons

Form 1040

(2 pages)

Statements, Schedules, and worksheets

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Form 1040 – Personal Tax Return

About you

Income

Deductions

Tax Due

Payments & credits

Balance due or refund

Signatures

Page 1

Page 2

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Optional Additional Pages that Support Form 1040

Schedule C

Business income if sole prop

(simple P&L)

Schedule E

Rental income, S corp, partnerships

(simple P&L)

Schedule A

Itemized Deductions

(fancy list)

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Review your Personal Tax Return (a 2-cup job)

There is often an ROI to reviewing your personal tax return

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Tax return Review 101 – income

About You

What to check

  • Address
  • Social security numbers

Most Common Mistakes

  • Typos

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Tax return Review 101 – income

Income

What to check

  • All your W-2s are included
  • Income from businesses (K-1)
  • Bank interest, stock sales, crypto gains (losses)

Most Common Mistakes

  • Forgot to tell CPA about a new business or ownership
  • Misclassification of a building used by your business
  • Forgotten capital loss carryover
  • Incorrect cost basis for investments

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Tax return Review 101 – Deductions

Deductions

What to check

  • If you itemize deductions verify complete list
  • You should have a number for QBI (box 13)

Most Common Mistakes

  • Forgot to tell CPA about a new business or ownership
  • Missing QBI deduction
  • Forgot to tell CPA about a big purchase (e.g. car)
  • Forgot to tell your CPA about a big charity gift

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Tax return Review 101 – Tax Due

Tax Due

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Tax Brackets

Tax Rate

MFJ Range

Amount in range

Tax

10%

$0 to $20,550

$20,550

$2,055

12%

$20,551 to $83,550

$62,999

$7,560

22%

$83,551 to $178,150

$94,599

$20,812

24%

$178,151 to $340,100

$161,949

$38,868

32%

$340,101 to $350,000

$9,899

$3,168

Total

$350,000

$72,463

Example – Married couple with total income $350,000

Highest tax bracket

Average tax bracket

$72,463

$350,000

= 21%

1

2

3

4

5

6

7

8

9

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Tax return Review 101 – Tax Paid

What to check

  • Taxes withheld via paycheck are all included
  • Estimated tax payments all included
  • Carryover from prior tax years

Most Common Mistakes

  • Forgot to tell CPA about quarterly estimated payment
  • Forgot to tell CPA about prior year carryover

Payments & credits

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Tax return Review 101 – Balance Due

Balance

What to check

  • Bank account is correct (if refund)
  • Do you owe a tax penalty? Why?

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A Better Approach

Filing Taxes is a mini-project of collaboration between you and your CPA

Plan

Starts with a plan

You sign

Gather documents

Draft the return

Review draft

Finalize

File

  • Signatures
  • Payment or refund method

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A Better Approach

Filing Taxes is a mini-project of collaboration between you and your CPA

Plan

Starts with a plan

Gather documents

Draft the return

Review draft

Finalize

File

  • Archive PDF
  • Archive files for future

You sign

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a Successful tax filing Mini Project

Accurate

Filed on time (regular or extension)

Predictable tax outcome

No stress

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Tax Return Review Guide

Covers how to review your Personal Tax Return and Common Mistakes

Personal Tax Return Review Guide

$25,000 - $999,999 taxable annual income

Personal Tax Return Review Guide

Above $1,000,000 taxable annual income

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Key Takeaways from Today’s Training

  1. Treat tax filing like a mini project
  2. Review your tax return
  3. The more you understand your personal tax return, the better your family office will operate

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Ark Family Office Academy is Personal Financial Coaching for First-Generation Business Owners

  • Get the right advisors
  • Protect what you’ve built
  • Save on taxes
  • Gain confidence

arkfinancial.com/academy

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Ark Academy Monthly Training Topics

Cashflow Foundation

Get control of your cash

January

Wealth Management

Accumulate wealth with purpose

February

Life Insurance

Straight talk without a pitch

April

Debt

Make debt work for you and your business

August

Contracts

How to protect yourself and your business

July

Entity Structures

Get it right (finally)

May

Risk Mitigation

Protect your business sufficiently with insurance

June

Estate Planning

Pass your wealth to your family and charities

September

Tax Season Bootcamp

Navigate tax season with confidence and reduced stress

March

Year-End Tax Strategies

Even bigger tax savings

November

Legacy

Experience abundance

December

Succession & Exit

Plan your future

October

Copyright 2023 Ark Financial Holdings, LLC

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What Current Ark Academy Members are Saying

Ark Academy Early Access Program

Coming in Q3-2023: Learn to create and operate your own family office

“Where have you been my whole life?”

“Why hasn’t anyone told me this before?”

“This is so refreshing.”