K & R Strategic Partners, LLC

https://newsroom.churchofjesuschrist.org/article/elder-patrick-kearon-called-quorum-of-the-twelve-apostles

Elder Patrick Kearon Called to the Quorum of the Twelve Apostles Elder Patrick Kearon is the newest member of the Quorum of the Twelve Apostles of The Church of Jesus Christ of Latter-day Saints.

The last day of our Kick Off to the Holidays week was a staff lunch with family recipe desserts, a white elephant gift exchange where every gift was from a gas station, and decorating the office for Christmas as a team! 🎅🏼🎄❄️

Happy Holidays from your friends at KRSP!

Day 3 of our Kick Off to the Holidays Week was our 2nd Annual Vision Summit! As a team we reflected on 2023 and planned for 2024. We celebrated our team members that joined us this year, promotions, continuing education celebrations, and awards for our employees who demonstrated our Core Values through out the year. 2023 had lots of exciting changes and we are excited to see what 2024 has in store! 🎅🏼🎄❄️

Promotions:
• Tax Manager: Chad M
• Senior Tax Associate: Tori P
• Office Manager: Renee

Continuing Education:
• Enrolled Agent: Nicki V
• Enrolled Agent: Chad M
• Series 65: Aurelie N
• Paralegal: Jennifer L

Core Values:
• Above & Beyond: Tonya R
• Work-Life Balance: Holly B
• Respect: Chad M
• Team Collaboration: Tori P
• Gratitude & Integrity: Jennifer L
• Strong Relationships: Jennifer S

Rock-Stars of 2023:
• Hidden Gem: Tina C
• Rising Star: Bobbie H

Celebrating 5 Years:
• Heather R
• Taylor H

We are SO proud of our staff and all their accomplishments!

For Day 2 of our First Annual Kick Off to the Holidays Week, our staff gave back to the community and volunteered at Feed My Starving Children. Along with the other volunteers, we packed 36,000 meals for children overseas and 99 children will be fed for an entire year with vitamins, vegetables, soy and rice. Following Feed My Starving Children, we enjoyed a staff lunch at Rancho de Tia Rosa! 🎅🏼🎄❄️

Today our staff partook in our First Annual Kick Off to the Holidays Week! Day 1 consisted on Ugly Christmas Sweaters, Christmas hats, and games! Tune in tomorrow to find out what Day 2 had in store! 🎄🎅🏼❄️

Hello December! 🎅

K&R is ready for the holiday season! Comment below your Holiday plans! ❄️

Happy 1-Year Work Anniversary, Bobbie! 🥳

Just like Jenn, Bobbie joined the team the first day we moved into the new office! Bobbie is one of our tax preparers and is also a founding member of our tech team. She helped develop a process to spruce up our outdated Company Maps and create a master report for the new CTA requirement coming into effect January 2024. Outside of work, she is married and has 3 kiddos, 2 boys and a girl, coaches volleyball and enjoys being a soccer mom. She is also a founding member of our morning coffee walk over to The Human Bean. She is funny, witty, and kind and we enjoy her presence every day.

Thank you for all you do and continue to do!

We ❤ You!

Happy 1-Year Work Anniversary, Jenn! 🥳

Jenn joined us the first day we moved into our new office and has been a ray of sunshine ever since! She started on our Small Business and Advisory Services team (SBAS), but has recently started her transition over to the Legal Team. Jenn is a mom to 4 kiddos, 3 boys and 1 girl, and spends her time outside of work jumping from sporting events to choir performances and attending church with her family. In between it all, she is also currently completing an intensive Paralegal program. Jenn is the "mama" of the office and has everything from cold medicine, lotion, and healing essential oils at her desk.

We appreciate everything she has done and continues to do for the office!

We ❤ You!

Spots are limited! Please call our office to schedule your annual tax planning meeting prior to the December 15th cut off! Once spots are filled, this service will not be offered again until 2024.

☎ (480) 392- 6801
💻 [email protected]

Happy Thanksgiving from our family to yours! 🦃

Our office will be closed Thursday, November 23rd and Friday, November 24th in observance of Thanksgiving. We are using this time to catch up on sleep, eat lots of yummy food and visit with family so we can come back and work with the best clients in the state!

See you all Monday, November 27th!

To read our latest update on the Corporate Transparency Act, please visit the link below to read our Blog on the FinCEN Identifier.

https://krtaxes.com/cta-update-fincen-identifier/

Happy 1 yr work anniversary to our all-star, Tori! 🥳

Tori is one of our amazing tax associates and is the head of our tech team! She has spent countless hours researching programs and processes to make our jobs easier and for her we are forever grateful! Outside of work, she is a mama to 3, has any sports equipment you could think of in her car, plays softball, and enjoys hiking. She is one of the founders of our morning coffee walk to the Human Bean and is always ready to play music if the office needs a pick me up.

We love you Tori and appreciate you! ❤

To those in uniform serving today and to those who have served in the past, we honor you today and every day. 🇺🇸

Happy International Accounting Day to our amazing accountants here at K&R!

We appreciate all your hard work and could not function efficiently without you! ❤

🎼 Hey now, you're an all star, get your game on, go play 🎼

Happy National Team Manager Day to our amazing managers at K&R! We are thankful for their guidance, hard work, and positive mindset that they bring into the office every day.

We appreciate you! ❤

Call our office today at 480-392-6801 and our Office Manager, Renee, can assist you in scheduling a tax planning meeting!

Happy Halloween from your friends at K&R! Swipe through to see past and current costumes of our staff and their family! 🎃👻

Welcome to the team, Lori! 🥳

Lori is joining our Small Business Accounting and Advisory Services (SBAS) team. We are excited to get to know her and cannot wait to see the amazing advisor she'll be with our accounting and booking clients!

As a business owner, here is what we advise you do by years end!

1. If you live in a state where LLC's need to file an annual report, make sure the report is filed to prevent the LLC being administratively dissolved by the state.
2. If any changes occurred with member-managers, addresses, etc., make sure the changes are also made on the states SOS website.
3. If your LLC has an Operating Agreement that requires a yearly meeting, make sure that is taken care of by years end.
4. Create a folder on your desktop to begin gathering tax documents for the upcoming filing season so the process is easy peasy and stress free.
5. If you closed your business, make sure it is closed across all platforms (Filing a final tax return, terminating payroll if necessary, terminating on the SOS website, closing bank accounts, etc.).
6. Secure a tax planning meeting with one of our amazing tax professionals to ensure you and your business are set up for success!!

Did you know there are tax credits available for businesses in Arizona?

Arizona Corporate Credits allows you to offset your tax burden dollar for dollar with a corporate donation to fund scholarships for underprivileged children. This credit is deductible on your federal tax return and is recorded as a marketing expense, lowering your taxable income.

These donations must be made to a qualified organization with a minimum contribution of $5,000.

The application opens in the summer and spots are limited so we advise to prepare the application as soon as we alert you about the opportunity.

For more information, please contact our office at 480-392-6801 so we can connect you with your tax preparer! ☎

Happy 1 year Work Anniversary, Tina! 🥳

Tina is a jack of all trades in our office and ensures the tax administration process runs smoothly! When you submit your documents, Tina preps them for our tax preparers, collects payments, 8879's and files tax returns. She is a Canopy and CCH wizard and is always a helping hand. We would truly be lost without her and appreciate her hard work and dedication!

Outside of work, she has two children, lots of pups, a grand baby she adores and drives a super cool Jeep!

We love you, Tina! ❤

We want to say a sincere THANK YOU to everyone who entrusted us for another year of filing their tax returns. We truly enjoy what we do and ensuring we are going above and beyond to make tax season go smoothly for our clients and providing them with favorable returns.

If you would like to refer us to a friend, please have them call our office at 480-392-6801 so our Office Manager, Renee, can walk them through the New Client application process!

Our staff will be working a half day in observance of reaching the 2022 tax extension due date. We will be fully back in the office tomorrow responding to missed correspondence.

Today is the 2022 Tax Filing extension due date!

Anything filed after this will be subject to penalties for late filing/ noncompliance. If your tax return has not been completed, you may have to wait until January 2024 to file the return.

For more information, please contact your tax manager.

If you own an LLC, an Operating Agreement is an important binding document that we highly recommend having.

An operating agreement is a document that outlines the process for making financial and functional decisions for the business. It is a binging set of rules signed by each member that becomes crucial in times when business conditions change or disagreements arise. Operating agreements also include ownership percentages, voting rights of each member, responsibilities of each member, and the legal boundary between the owner and the entity in a single-member LLC.

Most states do not require an Operating Agreement to form an LLC, but here are a list of the states that do:

- California
- New York
- Missouri
- Maine
- Delaware

In states that do not require an Operating Agreement, the LLC is governed by the default rules of the state. With an Operating Agreement, they are not subject to the default rules as they are governed by their own that are listed in the document.

If you are interested in creating an Operating Agreement or have questions, please call our office at 480-392-6801 so we can connect you with our In-House LLC Liaison, Garrett Wilkes.

If you are a high W-2 earner and stumped on which tax savings strategies are left for you, keep reading on how Oil and Gas deductions can benefit you!

While many potential tax saving strategies are limited to business owners, oil and gas deductions can benefit high earning W-2 employees as well. Energy investments avoid the phased-out deductions for real estate losses that investors face between $100,000 and $150,000 in income. These investments offer large tax deductions in the first
year followed by attractive returns in future years.

Here are the upfront tax savings:

• Large deductions in the first year of investment
provide immediate tax benefits.
• Intangible Drilling Costs (IDCs) are the expenses to
develop an oil or gas well that are not a part of the
final operating well. With an upfront investment of
$100,000, a typical investor would receive $70,000
in IDC deductions in the first year.
• Furthermore, they would also receive a deduction
of about $5,000 in the first year for depreciation of
tangible equipment.

Here is what the investments look like on future tax returns:

• The deduction for depreciation of equipment is
an estimated $5,000 per year for 7 years.
• Earnings on investments are estimated at 8.3%,
and oil and gas fields generally have a lifespan
ranging from 15 to 30 years.
• These investments are located on U.S. soil which
increases the nation’s energy independence and
protects the stability of the investment.

The best way to utilize the tax savings in oil and gas is to become a direct investor.
We recommend investing with the U.S. Energy Development Corporation as a General Partner. For more information, contact our in-house financial advisors, Chris and Steve Captain at [email protected] - (480) 234 - 3244 and [email protected] - (480) 797 - 6219.

Have you heard about the Family Management Plan tax deduction but you're not sure what it entails? Keep reading to learn how this tax strategy can save you thousands!

The Family Management Plan (FMP) allows your S-Corp to take a deduction of $13,850 for each child under 17 years old without creating taxable income for them. To be paid, the children must complete work for the business such as modeling on the website or basic office tasks such as filing or shredding.

We recommend creating an LLC in your resident state for the Family Management Plan for the protection it provides. During the year, up to $13,850 per child in the FMP will be transferred to their individual bank account. The transfer can occur all at once or in increments throughout the year. The money transfer is as follows: the S-Corp transfers the money to the FMP account, then the FMP account transfers the money into the children's accounts. For the tax return, please submit screenshots of the transfers so we can generate a 1099-NEC.

Once the money is in the children's accounts, you can route the money back into the business as paid in capital, pay for their extra curriculars, or create a ROTH IRA for them.

Here is a break down of the projected tax savings:
$13,850 deduction
x 4 children
x 24% marginal tax rate
= $13,296 in tax savings

The initial investment is pennies compared to the savings you will receive. If you are interested, please contact our office at 480-392-6801 so we can schedule you an appointment with our LLC Specialist, Lee Jackson.

Did You Know?

The Augusta Rule tax saving strategy received its name in Augusta, Georgia when residents would rent out their homes during the annual Masters Tournament.

Under this rule, business owners can take advantage of saving money for their business while getting a large tax deduction. This rule allows someone to rent out their home tax-free for 14 days or less in a year. As with most tax strategies, you must meet the requirements and keep meticulous records.

The first step in implementing this tax strategy is to know the rules. First, the rent must be a reasonable amount that is supported by market research. An online search for similar properties is sufficient. Second, the property must be in the U.S. While it doesn’t have to be your primary residence, you can’t rent out your vacation home in another country. Third, the total days rented for the year must be 14 or less per property.

For more information, we recommend scheduling a tax planning meeting so we can dive into the Augusta Rule and other tax saving strategies further. To schedule this meeting, please call 480-392-6801 ☎️

Tax season can be a stressful time for many but do not fret! Your friends at K&R are here to help and provide tips to get organized for the 2023 Tax Season. 🥳

A perk of working with K&R is that we will provide you with a questionnaire and organizers as guides to determine the documents you need to provide. These guides help you allocate vehicle and business expenses, if you purchased any energy efficient vehicles or home improvements you can receive credits for, and if you welcomed a new child during the year that we need to document.

As a firm, our number one tip is to create a folder on your desktop that you save all important items to so when you are completing the questionnaire and organizers, this information is easily accessible. When you receive your W2's or 1099's, Mortgage statements / property tax, and health insurance documents, immediately place them into the folder so they are not lost or forgotten.

The more prep work you do prior to the new season, the easier the upcoming filing will be. Trust us, we are professionals 😉

As always, if you have any questions or are unsure about anything, please call our office at 480-392-6801 so we can assist you! ☎️

It's our 14th birthday! 🥳

14 years ago, Richard and Kelly created K&R Tax Accounting Services LLC out of their home. Fast forward, they have expanded their business to 20+ employees, a name change, thousands of clients across all 50 states, and added 2 new owners. We are extremely grateful for their vision and what it has lead to. Here is to forever more birthdays celebrations!

Happy 3 Year Work Anniversary, Keith! 🥳

Keith is one of our amazing tax managers and now owners of K&R Strategic Partners LLC. The running joke around the office is that he is half human and half robot. He can calculate numbers faster than anyone we know and knows the answer to almost everything.

We are grateful for his knowledge and leadership and enjoy working with him every day. He is a great addition to the team and thankful he is ours!

Are you a business owner in the US? Keep reading to know how the newly enacted Corporate Transparency Act affects you.

Effective January 1st, 2024, every existing, amended, or new corporation, LLC or other entity registered through any state’s Secretary of State, including foreign entities doing business in a state MUST FILE specific reports with the Financial Crimes Enforcement Network (FinCEN). For existing companies that meet the stipulations there is a one-year deadline before financial and possible criminal consequences begin. All new entities created on or after January 1st, 2024, will need to file within 14 calendar days of formation.

The Corporate Transparency Act (CTA) is intended to provide law enforcement with beneficial ownership information for the purpose of detecting, preventing, and punishing terrorism, money laundering and other misconduct through business entities. This report will require information about the Business Entity, information for each of the Beneficial Owners of the company (any individual who has substantial direct or indirect control of the reporting company or who owns at least 25% of the ownership interests) as well as Company Applicants (the person or people filing on behalf of the entity).

We understand this is a huge act that sounds scary but do not worry! Your friends at K&R are studying the code each week for updates on the timeline. There are no action items needed at this time. Please watch out for more information from K&R next month! Follow the link to our entire blog post on the CTA!

https://krtaxes.com/corporate-transparency-act/

Typically, it is cost effective to file LLCs on your own aside from a professional but often the LLC is filed incorrectly, and it can be costly to fix. At K&R, we have an LLC Department that can correctly file your LLC and create a business path for you to succeed.
Here is why our LLC Department recommends not filing LLCs on your own:

Anyone can login to their states’ Secretary of State website and file an LLC, but many of the sites do not explain how you must file for an EIN as well when you create an LLC. An Employer Identification Number (EIN) is essentially the Social Security Number for your LLC. This will be used in the preparation, filing, and payment of your taxes.
Every LLC requires the appointment of a statutory agent to receive any legal correspondence on behalf of the business. The appointed individual is required to be available Monday – Friday from 8am – 5pm. When you have an incorporation file the LLC, they can offer their services or connect you with a registered agent service in your state so you can have the peace of mind of living life without being held at home. This service also eliminates the need for your personal home address to be listed on a public website. The registered agent will list their address on the Articles when filing the LLC, so your personal home address is hidden.

By having a professional file your LLC, you are paying for the peace of mind that your LLC is being filed correctly and efficiently by individuals who are skilled in this field. They are knowledgeable and strive to ensure your business is a success from day one.

If you are interested in K&R completing your LLC scope of work, please contact our office at 480-392-6801 so we can connect you with our LLC Department!

If you are self-employed or own a rental property, you have probably seen Schedule C and Schedule E page on your tax return. If you have wondered what that means, we are here to help!

Here is the answer from our LLC Department:

A Schedule C is filed on your individual tax return when you are self-employed. Typically, if you are self-employed, you are paid either through cash, Venmo, or Zelle to name a few. Business clients will send you a 1099 form that highlights how much they’ve paid you for the tax year. It is your responsibility to keep an accurate record of these payments, so your tax preparer has an account record of the income received for the year. You may also need to send 1099 forms to vendors or contractors you have paid through the business. We can assist with this.
A Schedule E is filed on your individual tax return as well. Schedule E’s record rental income you received from homes or buildings that you own. With rental income, the IRS does not view you as self-employed therefore you file a Schedule E instead of a Schedule C. If you manage rental properties as the main business activity, then your participation in the business may fall under self-employment and your tax preparer will file a Schedule C. Schedule E’s can also be used to report supplemental income and losses from royalties, Partnerships, S-Corporations, Estates, Trusts, and residual interests in real estate mortgage investment conduits (REMICs).

For further questions, please contact our office at 480-392-6801 so we can connect you with your tax preparer.

Have you ever wondered when it is time to elect your business to become taxed as an S-Corporation?

Here is the answer from our LLC Department:

Typically we recommend S-Election status if the LLC generates $60-75K annually. But, there are exceptions to S-Election status under that threshold if the LLC has multiple expenses. Electing to become an S-Corporation can be costly and requires a separate tax return and the owners are required to issue themselves an officers salary from the business. When our tax associates are working on your tax filings, they are in the best position to determine S-Election status. If they determine it is in the best interest of the business, they will assist you in completing and filing the 2553 S-Election IRS form.

For further questions, please call our office at 480-392-6801 so we can connect you with your tax preparer or our LLC Department Manager, Garrett Wilkes.

Have you ever wondered why you need an LLC for each rental property you own?

Here is the answer from our LLC Department:

1. Having an LLC for each rental property limits personal liability. If you own the property as an individual as someone files a lawsuit against you, then all your personal assets are at stake. Under an LLC, only assets owned by the LLC are at stake and your personal assets are protected.

2. Piggy backing off of point one, by having your rental properties in separate LLC's, if a lawsuit is filed against one property, the other properties are not at stake. This effectively separates and protects each property.

3. Having an LLC for each rental property means they have the benefit of pass through taxation. The income is recorded on your individual return and minimizes the amount of money taken out of your income for taxes. This is different compared to corporations that are taxed directly on their profits and the owners are taxed again when they are issued a salary from the corporation.

4. In addition to separate LLC's, you need a separate bank account for each property. This ensures your personal finances are separate from the business and it is easier to track income received and operating expenses for each individual property.

If you have further questions or are interested in setting up an LLC for your rental properties, please call our office at 480-392-6801 so we can connect you with our LLC Department Manager, Garrett Wilkes.

1040's, C-Corps, and Trusts your extension due date is a month from today! If you are still working with your tax preparer on your return, please reach out to them asap so they can let you know if there is anything they are waiting on to complete your file. Have questions? Call our office at 480-392-6801 so we can connect you with your tax preparer.