Bert & Associates

Map of Bert & Associates 7830 NW 44th St Fort Lauderdale, FL 33351-6206

Directions to Bert & Associates 7830 NW 44th St Fort Lauderdale, FL 33351-6206

Call for an appointment (954) 580-0880 Broward County (800) 785-3759 Nationwide

2002 Tax Preparation Checklist

Personal Data
Social Security Numbers (including spouse and children) and Dates of Birth.
Child care provider tax I.D. or Social Security Number

Employment & Income Data

Wages (W-2s)
Interest, Dividends, Capital Gain Distributions (1099s)
Sales of Stock or other property including Cost Basis (1099s & Broker Statements)
Rents and Royalties (may receive 1099)
Alimony (need SS# of payer)
Pensions, Annuities and other Retirement Accounts (1099)
Unemployment Compensation (1099)
Social Security and Railroad Retirement Benefits (1009-S or 1099-R)
Business and Farm Income (may have 1099-MISC and/or CCC 1099-G)
Partnership, S Corporation Trust and Estate Income (K-1)
Gambling and Lottery Winnings (1099-G or W-2G)
State and Local Income Tax Refunds
Scholarships and Fellowships (1099)
Other Miscellaneous income    
Jury duty pay
Prizes and awards  

Homeowner/Renter Data
Residential address(es) for this year
Mortgage interest: Form 1098
Sale of your home or other real estate: Form 1099-S
Second mortgage interest paid
Real estate taxes paid
Rent paid during tax year
Moving expenses

Rental Owners

Mortgsge Interest of Rental Property

Real Estate Taxes of Rental Property

Homeowners Insurance Fees

Homeowners Association Fees

Repairs and maintenance costs

Prior year tax return if new preparer

Utilities and Fees paid on property

Financial Assets
Interest income statements: Form 1099-INT & 1099-OID
Dividend income statements: Form 1099-DN
Proceeds from broker transactions: Form 1099-B
Tax refunds & unemployment compensation: Form 1099-G
Miscellaneous income including rent: Form 1099-MISC
Retirement plan distribution: Form 1099-R

Financial Liabilities
Auto loans and leases (account numbers and car value) if vehicle used for business
Student loan interest paid
Early withdrawal penalties on CDs and other time deposits

Automobiles
Personal property tax information

Expenses
Gifts to charity (receipts for any single donations of $250 or more)
Unreimbursed expenses related to volunteer work
Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)
Investment expenses
Job-hunting expenses
Education expenses
Child care expenses
Medical Savings Accounts
Adoption expenses
Alimony paid
Tax return preparation expenses and fees

Health Care Insurance and Expenses
New Dependents (need date of birth and SS#'s)
Home Mortgage Interest and Equity Loan Interest
Investment Interest and Expenses
Charitable Contributions (cash and non-cash property)
Out-of-Pocket Expenses and Mileage for Volunteer Services
Union and Professional Dues
Child and Disabled-Dependent Care Expenses
Job-seeking Expenses
Traditional or Roth IRA, Keogh, SEP and SIMPLE Contributions
Expenses for Business Use of Automobiles/Trucks
Business Travel and Entertainment Expenses
Alimony Paid (need recipients SS #)
Work-related Moving Expenses
Real Estate Taxes
Casualty and Theft Losses
Education and/or Vocational Expenses
Estimated Tax Payments Made
Educator Expenses
Gambling Losses

Self-employment Data
K-1s on all partnerships
Receipts or documentation for business-related expenses
Farm income

Deduction Documents
State & local income tax: your 2000 & 2001 estimated tax vouchers paid in 2001
IRA, Keogh & other retirement plan contributions
Medical expenses

Casualty or theft losses
Other miscellaneous deductions

Office Expenses

  Beeper/pager

  Business calls – provide bill with individual breakdown of calls

  Business cards

  Database connecting fees (CompuServe, AOL, Dow Jones, etc.)

  Separate designated business phone line

  Publications, manuals, and magazines related to your profession

Automobile

  Tolls and parking

  Mileage Reimbursement Accountable Plan

  Actual Auto Expenses (Contact your Business Center Manager for details)

Child Care

  Both husband and wife must be working

  Maximum of $5,000 per year – for children up to and including 13 years old

  Must provide Federal Employer Identification Number of child care provider

Equipment Purchase Program

  Contact your Business Center Manager to discuss how you may expense computer equipment purchases over $500.

Marketing/Entertainment

  Client entertainment

  Business meeting meals

  Public relations

  Promotional material

  Resume production

  *Receipts for Marketing/Entertainment must include:

1. date; 2. place; 3. cost; 4. names, titles of attendees; 5. reason for dinner, meeting, etc.

  Use your credit card for these expenses – only a limited number of hand-written check stubs will be accepted.

Medical Insurance Premium Coverage

  Major medical insurance premiums for your own plan

Medical Expense Reimbursement

  To be eligible you must be covered by both our medical and dental insurance plans or provide proof of coverage by your own plan.

  All noncovered medical costs up to the limits established by each member in the medical reimbursement account (but not to exceed $7,500 per year). Noncovered medical costs often comprise services for the following:

  eyeglasses

  chiropractic care

  dental/orthodontic work

  perscription medication, etc.

  Expenses for medical costs should first be submitted to your insurance carrier. The amount that is not covered by insurance can then be reimbursed. Documentation (insurance carrier's partial payment/denial/amount toward deductible statement) indicating noncovered amounts is required for reimbursement.

Disability Insurance Premium Coverage

  Private Income Disability Insurance Premiums (discuss with your tax advisor). Collection of benefits will be taxable if premiums are treated as pre-tax expenses.

Business Travel

  Cab fare

  Limousine service

  Airfare for flights to seminars and business trips

  Rental cars (short-term)

  Business Trips – Necessary documentation for reimbursement includes: 1) name of seminar or company and names of people you met with, 2) registration card for meeting attended; 3) travel tickets; 4) hotel bills.

  Per Diems (dependent upon specific situations - contact your Business Center Manager)

  Travel Expenses while away from home (in accordance with the Internal Revenue Code).

Tuition
(100 percent reimbursement – no grade required)

  Tuition credits pertaining to your profession that are not minimum requirements for your profession, as described in Internal Revenue Code.

  Seminars related to your profession

All requests for reimbursement must be accompanied by receipts 5 days prior to receiving reimbursement. Any expense in excess of $25 must include business purpose for the expense.

Total employee expenses may not exceed 50% of employee's gross salary. Exceptions are made for medical-related expenses and per diems.

List of Common Business Deductions

To help you decide whether a particular expense is likely to be deductible, we've provided a list of the most common business deductions.

List of common deductible expenses:

• advertising
• bad debts from sales or services (for those using accrual accounting)
• bank fees on business accounts
• car and truck expenses
• commissions and fees
• cost of goods sold
• depreciation
• dues for trade associations and other not-for-profit, business-related organizations
• employee benefits
• gifts to customers, suppliers, etc.
• insurance (casualty and liability)
• interest
• legal and professional services
• meals and entertainment
• office expenses
• pension and profit-sharing plans
• publications
• rent or lease expense
• repairs and maintenance
• services performed by independent contractors
• supplies and materials (not included in cost of goods sold)
• travel expenses
• utilities
• wages of employees

If you don't see an item you're interested in on this list, check our list of common nondeductible expenses as well.  The IRS form on which these deductions must be reported will depend on your form of business operation, that is, whether you're a sole proprietorship, partnership, LLC or corporation.  If you operate your business as a sole proprietorship, you will report business deductions on Schedule C of Form 1040. (You can use the simpler Schedule C-EZ if your business expenses are under $2,500, you do not have inventory or employees, you use the cash method of accounting, and certain other requirements are met.) If you do business as a partnership, you'll file Form 1065. If you operate as a corporation, you'll file Form 1120-A, Form 1120, or Form 1120-S for S corporations.

Business Expenses

Business expenses that are ordinary and/or necessary for your business may be deductible. Ordinary means it is a common expenses in your field. Necessary means it is helpful and appropriate for your business. You will need to keep your canceled check and your invoice as proof.

Typical Expenses

Advertising: You do not have to prove it increased your business.

Car & Truck: you are required to keep a written record of our mileage. Standard mileage rate usually yields a higher deduction. In addition to the mileage rate, you also get the cost of parking and tolls. You cannot include commuting mileage.

Commission & fees: Expenses for services performed by nonemployees.

Interest: Related to business loans including credit card interest if credit card is used 100% for business.

Legal & professional services: Includes fees charged by accountant, lawyers and tax preparers.

Office: If you do not meet the requirement for Office-In-Home, you can still deduct your office expenses. This includes supplies, equipment telephone and furniture.

Rent or lease: Includes property vehicle machinery or equipment rental. Vehicle rental deduction may be reduced. Rent-to-own contracts are sales not leases.

Repairs & maintenance: Does not increase the value of the asset. Includes supplies, labor and sales tax.

Taxes & Licenses: Includes real estate and personal property tax, employers share of FICA taxes, Federal and State unemployment taxes and Federal highway use tax. Does not include sales tax.

Travel: Business trips that require you to stay overnight are deductible. Expenses include hotel, travel, parking and tips. Keep cost of meals separate.

Meals and entertainment: Includes meals while traveling. Entertainment expenses must be directly related to business. You must discuss business before, during or after the meal or entertainment. Keep the receipt and write on the back who you met with and a brief description of the business discussed. Deduction is limited to 50%.

Utilities: Can deduct the business long-distance phone calls and the cost of a second line into your house if this line is used for business only.

Wages: Wages paid to employees. Do not count what you paid yourself.

Depreciation: If you purchase business assets with a useful life greater than one year, their expense is deducted over a period of years, defined by the IRS. This annual deduction is called depreciation. The year you purchase a new asset you may be able to deduct the total amount of it. This depends on the type of your business, if it had a profit, the type of asset purchased and its cost.

Inventory: Items purchased to be resold are considered inventory. Your inventory records are kept separate from your other expenses. You need to get a value of your inventory at the beginning of the year and again at the end of the year. You also need to keep track of the goods purchased during the year. There are several ways to value your inventory. The most common used is “First In First Out” method., referred to as “FIFO.” This method assumes that the first purchased items are the first to be sold. The value of your inventory would be the lower of your cost or market value.

Other: To list the type and amount of expenses that did not fit in the other categories. For more information, see IRS pub 334.