Navigate the intricacies of rental income, capital gains, and itemized deductions with precision. We turn complicated financial portfolios into compliant, optimized tax returns.
Complex tax filing refers to the preparation of income tax returns that involve non-standard income sources beyond W-2 wages, specifically requiring detailed reporting on IRS Schedules A, D, and E. This type of filing addresses passive income from rental real estate, capital gains or losses from stock and cryptocurrency trading, and the itemization of significant personal expenses like mortgage interest and medical costs. Successfully managing a complex return requires advanced knowledge of depreciation schedules, cost basis calculations, and passive activity loss limitations to ensure full compliance and tax efficiency.
Owning real estate offers powerful tax advantages, but only if reported correctly on Schedule E. We meticulously categorize your rental income and expenses, distinguishing between immediate repairs and long-term capital improvements to optimize your depreciation schedules. Our team ensures you navigate passive activity loss limitations correctly, protecting you from future audits while maximizing the deductibility of mortgage interest, property taxes, and management fees associated with your investment properties.
Whether you are trading stocks, bonds, or cryptocurrency, accurate reporting on Schedule D is essential to avoid penalties and overpayment. We calculate your short-term and long-term capital gains, verifying cost basis data that brokerage forms often get wrong. We also review your portfolio for "wash sale" rule violations and identify opportunities to harvest tax losses, ensuring your investment performance is not eroded by unnecessary tax liabilities.
The standard deduction is not always the best choice for homeowners or those with high medical costs. We perform a comprehensive analysis of your potential itemized deductions on Schedule A, including state and local taxes (SALT), charitable contributions, and mortgage interest. By comparing these figures against the standard deduction every year, we ensure you utilize the method that results in the lowest possible federal tax obligation.
Avoiding Costly Depreciation & Basis Errors
Tax software is designed for linear data entry, but complex returns requires non-linear strategy. Automated programs frequently mishandle depreciation recapture on rental properties or fail to adjust the cost basis for complex corporate actions like stock splits or mergers. A human tax professional looks at the history of the asset, not just the current year's form, preventing compounding errors that can trigger expensive IRS audits or result in thousands of dollars in lost tax savings over the life of your investments.
Get StartedCryptocurrency is treated as property by the IRS, meaning every trade, sale, or use of crypto for purchases is a taxable event that must be reported on Form 8949 and Schedule D. You must track the fair market value of the crypto at the time of purchase (cost basis) and the time of sale to calculate your capital gain or loss accurately.
You can deduct "ordinary and necessary" expenses for managing your rental property, including mortgage interest, property taxes, operating expenses, depreciation, and repairs. However, you must carefully distinguish between repairs (deductible immediately) and improvements (must be depreciated over time), as misclassifying these is a common audit trigger.
The Wash Sale rule prevents you from claiming a tax deduction for a security sold in a wash sale. A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you buy substantially identical stock or securities. If this happens, the loss is disallowed for the current year and added to the cost basis of the new stock.
You should itemize deductions if the total of your allowable expenses on Schedule A—such as medical expenses exceeding 7.5% of your AGI, state and local taxes, mortgage interest, and charitable gifts—is greater than the standard deduction for your filing status. We calculate both scenarios to determine which yields the greater tax benefit.