2014 INCOME TAX RETURN CHECKLIST

Transcription

1 Engagement Letter (See Page 2) 2014 INCOME TAX RETURN CHECKLIST Please provide the following items so that we may prepare your returns in a timely manner: ALL wage and earning statements Form W 2s, W 2G, 1099 R, 1099 MISC, etc. Interest and dividend statements 1099 INT, 1099 DIV, etc. Voided check (or proof of deposit) if you want any applicable refund directly deposited into your banking account. (Direct deposits are typically deposited within 2 weeks of a return being filed. A paper check will be sent to the address on file typically within 8 weeks if direct deposit information is not supplied.) Tax Return Service Deposit $225 Please make your check/money order payable to "Simply Taxes LLC" OR contact us for "E Check" and other payment options. Any outstanding balance due related to the services rendered will be billed upon the completion of your returns and must be received prior to final processing. Tax Organizer Note that pages 2 through 8 must be returned. Please review the remaining pages in this document to assist with the accurate preparation of your returns and provide them as applicable. Copy of Last Year's Federal and State Return(s) NEW CLIENTS ONLY Social Security cards (or copies) for you, your spouse (if applicable), and any dependents. NEW CLIENTS ONLY Government Issued Photo ID (or copies) for you and your spouse (if applicable). Examples include driver's license, state identification cards, passports, etc. NEW CLIENTS ONLY Provide all required documents via: info@simplytaxes.com; OR Fax: (877) ; OR Certified Mail: PO Box 665 Rolesville, NC 27571; OR In Person: Call to setup an appointment (919) ***Please allow the typical 4 5 business days turnaround time for the professional preparation of your income tax returns.*** Privacy Policy Your privacy is very important to us! We will not share or sell any personal information obtained from you with any other organization unless required to do so by law Simply Taxes, LLC 1

2 Please print, sign, date, and provide along with all other tax documents INCOME TAX ENGAGEMENT LETTER Thank you for choosing Simply Taxes, LLC (herein referred to as we/our/us ) to assist you with your 2014 taxes. This letter confirms the terms of our engagement with you and outlines the nature and extent of the services we will provide. We will prepare your 2014 individual federal and state income tax returns (if applicable). This engagement pertains only to the 2014 tax year and our responsibilities do not include the preparation of any other tax returns or any other filings that may be due to other authorities. Should you need business income tax returns filed, identify such returns in the following space provided: We will perform accounting services only as needed to prepare your tax returns. We will depend solely on you to provide the information we need to prepare complete and accurate returns. We may ask you to clarify some items but will not audit or otherwise verify the data you submit. Accordingly, our engagement should not be relied upon to disclose errors, fraud, or other illegal acts. We will not be held liable for the misrepresentation of information received. We will, of course, inform you of any material errors, fraud, or other illegal acts we discover. A tax organizer has been provided to help you collect the data required for your return. This organizer will help you to avoid overlooking important information. By using it, you will contribute to the efficient preparation of your returns and help minimize the cost of our services to you. The timeliness of your cooperation is essential to our ability to complete this engagement. Specifically, we must receive sufficient information from which to prepare your returns within a reasonable period of time prior to the applicable filing deadline. Accordingly, if we do not receive any follow up information that has been requested within a week (or other defined time) it may be necessary for us to pursue an extension of the due date of your returns, if available, at our standard extension fee of $75. We also reserve the right to suspend/withdraw from this engagement without return of any deposit for non compliance on your part or when egregious disregard for the law is exhibited. Should we encounter instances of unclear tax law, or of potential conflicts in the interpretation of the law, we will outline the reasonable courses of action and the risks and consequences of each. We will ultimately adopt, on your behalf, the alternative you select. The law provides various penalties and interest that may be imposed when taxpayers underestimate their tax liability. You acknowledge that any such understated tax, and any imposed interest and penalties, are your responsibility and that we shoulder no liability in the matter. If you would like information on the amount or circumstances of these penalties, please contact us. We will take responsibility for interest and penalties imposed as a result of erroneous calculations made by a preparer based on the information originally provided by the taxpayer, not to exceed service fees, if received within ten (10) days of any official federal or state notice date. Our liability does not extend to any consequential damages. Your return may be selected for review by the taxing authorities. Please note this is done at random and in no way is a reflection on the entity preparing the return. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, we will be available upon request to assist you and will render additional invoices for the time and expense incurred. Our fee will be based on the time required at our standard billing rates plus any out of pocket expenses (if applicable). Invoices are due and payable upon presentation. To the extent permitted by state law, an interest charge may be added to all accounts not paid within thirty (30) days. All returned checks will result in the imposition of a $25 fee plus administrative costs Simply Taxes, LLC 2

3 2014 INCOME TAX ENGAGEMENT LETTER We will return any original records received to you at the end of this engagement. You should securely store these records, along with all supporting documents, canceled checks, etc., as these items may later be needed to prove accuracy and completeness of a return. Our engagement to prepare your 2014 tax returns will conclude with the delivery of the completed returns to you (if paper filing) or the subsequent submittal of your tax return (if e filing). If filing your return via paper method, you will be solely responsible for filing the returns with the appropriate taxing authorities. Review all tax return documents carefully before signing them. In the event we are required to respond to a subpoena, court order or other legal process for the production of documents and/or testimony relative to information we obtained and/or prepared during the course of this engagement, you agree to compensate us at our hourly rate of no less than $175/hour, for the time we expend in connection with such response, and to reimburse us for all of our out of pocket costs incurred in that regard. In the event that we become obligated to pay any judgment or similar award, agree to pay any amount in settlement, and/or incur any costs as a result of any inaccurate or incomplete information that you provide to us during the course of this engagement, you agree to indemnify us, defend us, and hold us harmless against such obligations, agreements, and/or costs. If any part of the contract is found to be unlawful or invalid, the remainder of the contract will remain in force. To affirm that this letter correctly summarizes your understanding of the arrangements for this service, please sign this letter in the space indicated below and return it along with a copy of the Tax Organizer and supporting documentation requested therein. If we do not receive from you this original letter, in its fully executed form, but however do receive a copy of the enclosed Tax Organizer and/or supporting documentation requested therein, then such receipt by this office shall be deemed evidence of your acceptance of all the aforesaid terms. In the same manner, if we do not receive a response from you to this engagement letter it will constitute a non binding agreement. In other words, no agreement has been entered into and Simply Taxes, LLC will forever not be held liable in any form. Sincerely, Simply Taxes, LLC (Joint returns require signatures from both taxpayers.) ACCEPTED AND AGREED: [Print Name of Taxpayer #1] Signature of Taxpayer #1 Date [Print Name of Taxpayer #2] Signature of Taxpayer #2 Date 2015 Simply Taxes, LLC 3

4 2014 INCOME TAX RETURN ORGANIZER PERSONAL INFORMATION (Attention Returning Clients: Check here if unchanged from the prior year ) Taxpayer s Name Social Security Number Spouse s Name Social Security Number Home Address Apt/Suite/Unit Number City/Town State Zip Code County Telephone Number(s) E mail Address(es) Date of Birth Occupation Blind Disabled US Citizen? Taxpayer Spouse FILING STATUS Indicate the legal filing status to be used on your 2014 income tax return: Single Check if a parent (or someone else) can claim you as a dependent on their return Married Filing Joint Married Filing Separate Check if you lived apart from your spouse for the last six months of 2014 Same Sex Couple: State of Marriage Head of Household (May be used if unmarried and you paid over half the cost of keeping up a home for your dependent or qualifying child) If the person is a child but not a dependent provide: Name SSN Qualifying Widow(er) (May be used if your spouse died in 2012 or 2013 and you had a child living with you whom you can claim as a dependent) List year spouse died DEPENDENTS Enter the following dependent information for any qualifying child or qualifying relative: First Name Last Name Social Security Number (Enter "on file" if previously provided) Date of Birth Relationship to Taxpayer # Months Lived in Your Home (2014 only) US Citizen? Disabled? Dependent w/income over $3,950? OTHER INFORMATION Payment Method: Check/Money Order Credit Card/Debit Card PayPal Direct Deposit Information (attach voided check or deposit slip) Name of Financial Institution Checking Account Savings Account Routing Number Account Number 4

5 2014 INCOME TAX RETURN ORGANIZER Instructions (Please read carefully!): Review ALL questions and indicate "Yes" or "No" as applicable. Any boxes left blank will be deemed the equivalent of marking "No" as a reply. Note that questions with an "*" require you to provide supporting documentation if applicable. This form must be returned in order to properly prepare your tax return(s). HOUSING/REAL ESTATE (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 1 2* Did you or your spouse reside in more than one state during 2014? If yes, provide your dates of residency in each state for the year. Did you or your spouse buy, sell, refinance, or abandon a principal residence or other real property in 2014? (Please attach copies of HUD 1 closing statements) If a home was sold, did you own and occupy the home as your principal residence for at least 2 years of the 5 year period prior to the sale? Did you ever rent out this property? If yes, provide rental dates. Did you ever use any portion of the home for business purposes and reflect such usage on a prior return? If yes, provide copies of returns claiming the home for business purposes if not prepared by Simply Taxes. Have you or your spouse sold a principal residence within the last two years? At the time of the sale, please indicate who owned the house you spouse both 3* Were you or your spouse a first time homebuyer in either 2009 or 2010? If yes, please indicate the year the credit was claimed and the amount of any credits previously received: Year Amount $ Has the home for which the credit was claimed ceased to be a primary residence? If so, indicate the date when the home was no longer your primary residence. Date: (MM/YY) 4* Did you or your spouse claim the First Time Homebuyer Credit for a home purchased during 2008? If yes, please indicate the year the credit was claimed and the amount of any credits previously received: Year Amount $ Has the home for which the credit was claimed ceased to be a primary residence? If so, indicate the date when the home was no longer your primary residence. Date: (MM/YY) 5* Did you or your spouse withdraw any amounts from your Individual Retirement Account (IRA) or Roth IRA to acquire a primary residence? 6* 7* 8* 9* 10* Are the total mortgages on your first and/or second residence greater than $1,000,000? If so, please provide the principal balance and interest rate at the beginning of the year (or when loan was originated if during 2014) and end of the year for each residence. Are any mortgage amounts not associated with the original purchase of a primary or secondary residence? Provide detail on what was purchased with the mortgage proceeds only if not used on an original purchase of a primary or secondary residence. Did you or your spouse have any debts cancelled, forgiven, or refinanced during 2014 related to a home? If refinanced, provide the amount refinanced that was in excess of the fair market/appraised value of your home when refinanced (if applicable). Did you or your spouse move to a different home because of a change in the location of your job? If yes, provide Number of miles from old home to new workplace Number of miles from old home to old Unreimbursed number of miles driven during the move Unreimbursed cost of transportation of household goods and personal effects Unreimbursed cost of travel and lodging (do not include meals or auto expenses) Unreimbursed automobile expenses (gasoline, oil, etc.) Did you or your spouse install any alternative energy equipment in your residence such as solar water heaters, solar electricity equipment (photovoltaic), or fuel cells? 5

6 2014 INCOME TAX RETURN ORGANIZER EDUCATION (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 11* 12* Did you or your spouse pay student loans for yourself, your spouse, or your dependents in 2014? Did you, your spouse, or your dependents incur any qualified expenses for post secondary education tuition and related expenses (i.e., books, supplies, and equipment)? Note that room and board are not qualified expenses. If yes, provide a list of unreimbursed expenses and also answer for each student the following: As of the beginning of 2014, has the student completed the first 4 years of post secondary education, as determined by the eligible education institution (do not include academic credit awarded solely because of a students performance on proficiency exams). Was the student enrolled during 2014 in a program that leads to a degree, certificate, or other recognized educational credential? Was the student enrolled at least one half the normal full time workload for at least one academic period beginning in 2014? Has the student been convicted of a felony for possessing or distributing a drug or controlled substance? Indicate which education credits were taken on Form 8863, Education Credits, during the past four years, if any (i.e., American Opportunity Credit, Hope Credit or Lifetime Learning Credit). (NEW CLIENTS ONLY) 13* 14* Did you or your spouse withdraw amounts from a Coverdell Education Savings Account or Qualified Education Program (Section 529 plan)? If Yes, include Form 1099 Q. Did you or your spouse make any contributions to Qualified State Tuition Plans (Section 529 plans) or a Coverdell Education Savings plan during 2014? If yes, please provide the following for each beneficiary: Name of Beneficiary, SSN, State Sponsoring Plan, Account Number, and 2014 Contribution Amounts. HEALTH AND LIFE INSURANCE (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 15 Did you have qualifying health coverage, such as employer sponsored coverage or government sponsored coverage (i.e., Medicare/Medicaid) for every month of 2014 for your family? "Your family" for health care coverage refers to you, your spouse if filing jointly, and anyone you can claim as a dependent. 16* Did you or your spouse enroll for lower cost Marketplace Coverage through healthcare.gov under the Affordable Care Act? If so, please provide any Form(s) 1095 A you received. 17* Did you or your spouse contribute to or receive distributions from a medical savings account (i.e., Health Savings Accounts. Archer MSA, or Medicare+Choice MSA, etc.)? If yes, please provide 1099 SA. 18* Did you or your spouse receive distributions from long term care insurance contracts? If Yes, please include Form 1099 LTC. RETIREMENT PLANS (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 19* Did you or your spouse receive payments from a pension or profit sharing plan? 6

7 20* 2014 INCOME TAX RETURN ORGANIZER Did you or your spouse receive a total distribution from an IRA or other qualified plan that was partially or totally rolled over into another IRA or qualified plan within 60 days of the distribution? 21* 22* Did you or your spouse contribute to a Roth IRA or convert all or part of a regular 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? 23* Did you or your spouse withdraw any amount from your IRA to pay for higher education expenses incurred by you, your spouse, your children or grandchildren? 24* Were any distributions from your or your spouse's IRA and/or Roth IRA account(s) distributed to a charitable organization? 25* Do you or your spouse intend on making a 2014 contribution to a Traditional IRA? Contributions can be made up until the due date of the 2014 return. If so, how much? INVESTMENTS (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 26* 27* 28* Did you or your spouse receive grants of stock options from your employer, exercise any stock options granted to you or dispose of any stock acquired under a qualified employee stock purchase plan? (Do not include transactions included on a W 2.) Did you or your spouse buy or sell any stocks or bonds in 2014? If so, please provide broker's information (such as Form 1099 B's and broker annual statements) related to the transactions. Did you or your spouse cash in any U.S. Savings bonds during 2014? Was tax on the interest previously paid? Were the proceeds from Series EE or I U.S. Savings bonds purchased after 1989 used to pay for higher education expenses? If so, for whom? PRIOR YEAR TAX RETURNS (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 29* Were you or your spouse notified by the Internal Revenue Service or state taxing authority of changes to a prior year's return? If yes, please enclose agent's report or notice of change if the issue has not been addressed. 30* 31 Were there changes to a prior year's income, deductions, credits, etc. which would require filing an amended return? Have you or your spouse been an identity theft victim and have been contacted by the IRS? If yes, please provide the 5 digit identity protection personal identification number issued to you by the IRS. MISCELLANEOUS (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 32* 33* Did you or your spouse have any debts canceled, forgiven, or refinanced during 2014 (other than related to a home)? Did you or your spouse pay any individual for domestic/household services in excess of $1,000 in any quarter, or $1,900 for the year? Examples include: caretakers, housekeepers/maids, etc. that are your employees. Generally does not apply to self employed individuals who offer their services to multiple individuals (i.e., lawn care, etc.). 7

8 2014 INCOME TAX RETURN ORGANIZER 34* 35* 36* Did you or your spouse receive unreported tip income of $20 or more in any month of 2014? If yes, please provide the amount per each person: $ Did you or your spouse not pay sales tax on items which are taxable in your state (i.e., purchases from the Internet). If so, provide the gross amount of the purchases that should be reported to your state. Have you received a punitive damage award or an award for damages other than for physical injuries or illness? 37 Did you receive or pay alimony during 2014? If received, provide the amount received $. If paid, provide the amount paid, the recipient's name and Social Security Number 38* Did you or your spouse incur unreimbursed adoption expenses during 2014? 39* 40* 41* 42* Did you or your spouse receive any disability payments in 2014? Did you or your spouse have foreign income or pay any foreign taxes in 2014? Were you or your spouse a grantor or transferor for a foreign trust, have an interest in or a signature or other authority over a bank account, securities account or other financial account in a foreign country? If so, did the aggregate value of all your foreign accounts exceed $10,000 at any time during 2014? Did either you or your spouse receive any income not reported in the entire Tax Organizer package or otherwise provided? Note 1 Complete the applicable worksheets that follow if you have or paid any of the following items and you wish to claim them on your return: Medical/Dental Expenses, Sales Taxes, Real Estate Taxes, Property Taxes, Interest on a Home Mortgage, Charitable Contributions, Child Care Expenses, Casualty/Theft Losses, Unreimbursed Employee Business Expenses, Estimated Taxes, or any other miscellaneous deductions. Note 2 Did you or your spouse make any gifts, including birthday, holiday, anniversary, graduation, education, etc., with a total (aggregate) value in excess of $14,000 to any individual during the year? If so, you should inquire about filing an estate tax return and/or required non income tax returns. Note 3 Did you or your spouse make any contributions or gifts to any trust for any amount during the year? If so, you may be required to file an estate tax return and/or non income tax returns. If so, you should inquire about filing an estate tax return and/or required non income tax returns. BUSINESS/RENTAL ACTIVITY (If you answer "YES" to any of the questions below with an "*", you must provide supporting documentation.) 42* Did you or your spouse operate a business or manage rental property during in 2014? If yes, please provide information requested on pages 11 through 16. Be mindful that tax law and IRS regulations require recordkeeping. Adequate records should be available upon a potential audit in order to deduct an expense. Adequate records include (but are not limited to) keeping track of receipts, documentation of business purpose related to expenses, and driving logs. ADDITIONAL COMMENTS/QUESTIONS Please feel free to leave comments or ask questions. 8

9 2014 ITEMIZED DEDUCTIONS, CREDITS, & ESTIMATED PAYMENTS MEDICAL AND DENTAL (Do not include amounts that have been reimbursed or paid on a pre tax basis) Medical/dental care insurance premiums (other than self employed and Medicare) Qualified long term care premiums Doctor, dentist, hospital, and lab fees Prescription medicines and drugs Medical aids (eyeglasses, contact lenses, hearing aids, etc.) Number of miles traveled for medical care Lodging Other medical and dental expenses TAXES PAID State and local income tax paid (other than withholdings and estimated payments) Actual state and local general sales tax paid Real estate taxes (only amounts assessed on the value of property) Personal property taxes (i.e., vehicle tax only amounts assess on the value of property) INTEREST PAID Home mortgage interest paid to financial institution (enclose Form 1098) Home mortgage paid to individual (provide individual s name, address, and SSN/ID Number) Qualified mortgage insurance premiums (VA, FHA, RHS, or private) Investment interest expense GIFTS TO CHARITY You cannot deduct a cash contribution, regardless of the amount, unless you keep as a record of contribution a bank record (such as a canceled check, a bank copy of a canceled check, or a bank statement containing the name of the charity, date, and the amount) or written communication from the charity. The written communication must include the name of the charity, date of the contribution, and amount of the contribution. Written communication from the organization is required for contributions of at least $250. Clothes and household items donated must be in good condition in order to be deductible unless the item donated is worth more than $500 and you have the item s value appraised. Attach a copy of the appraisal. Include any vehicles donated to charity (attach Form 1098 C received from the charity). CONTRIBUTIONS OF CASH (or check, credit/debit card, etc.) Name of Charity Date 2014 Amount NONCASH CONTRIBUTIONS TOTALING LESS THAN OR EQUAL TO $500 Name of Charity & Description of Donated Property Date 2014 Amount 9

10 NONCASH CONTRIBUTIONS TOTALING MORE THAN $500 Must provide attachment with the following information: the name and address of the charity, date the property was acquired, how the property was acquired (i.e., purchase, gift, inheritance, exchange), date the property was donated, cost or basis of the donated property, fair market value of the property on date of contribution, and method used to determine the fair value (i.e., appraisal, thrift shop value, catalog, comparable sale). UNREIMBURSED EMPLOYEE BUSINESS EXPENSE DEDUCTIONS Be mindful that tax law and IRS regulations require recordkeeping. Adequate records should be available upon a potential audit in order to deduct an expense. Adequate records include (but are not limited to) keeping track of receipts, documentation of business purpose related to expenses, and driving logs. Personal Vehicle (See Page 14 - "Vehicle-Mileage" worksheet) Business Use of Home (See Page 16 - "Business Use of Home" worksheet) Fixed Assets (See Page 15 - "Fixed Assets" worksheet) Travel Expenses (non personal vehicle) Meals & Entertainment Other (i.e., union dues, small tools, work uniforms, professional subscriptions, membership dues, licenses, etc.). List expense separately. Attach on a separate paper if necessary. CASUALTY AND THEFT LOSSES Provide supporting documentation with a description of the casualty, description of the property, date acquired, cost of property, insurance reimbursements, and the fair market value before and after the casualty OTHER MISCELLANOUS DEDUCTIONS Safe deposit box rental Tax preparation fee paid during 2014 Hobby expenses (not to exceed hobby income) Gambling losses Estate taxes CHILD AND DEPENDENT CARE EXPENSES (Enter expenses paid for each dependent listed for each dependent claimed). Care Provider Name, Address, Dependent Name and SSN/EIN 2014 Amount FEDERAL AND STATE ESTIMATED TAX PAYMENTS (Income tax payments only, not payroll/employer taxes) Federal Estimated Payments Date Paid Amount Paid Applied from 2013 overpayment 1 st Quarter Payment 2 nd Quarter Payment 3 rd Quarter Payment 4 th Quarter Payment State Estimated Payments: (Enter each state individually) Date Paid Amount Applied from 2013 overpayment 1 st Quarter Payment 2 nd Quarter Payment 3 rd Quarter Payment 4 th Quarter Payment 10

11 City, State, and Zip Code: Business Product or Service Description: 2014 BUSINESS INCOME & EXPENSES (Use a separate sheet for each business) The purpose of this worksheet is to assist with the organization of tax deductible expenses. Deductible expenses are those which are ordinary and necessary. Be mindful that tax law and IRS regulations require recordkeeping. Adequate records should be available upon a potential audit in order to deduct an expense. Adequate records include (but are not limited to) keeping track of receipts, documentation of business purpose related to expenses, and driving logs. It is recommended that you review IRS Publication 535 Business Expenses ( pdf/p535.pdf). GENERAL BUSINESS INFORMATION (attached separate sheets for additional businesses) Business Name: Employer ID Number (if applicable): Business Address: Indicate the owner of this business: Taxpayer Spouse Joint Did you start or acquire this business during 2014?: Yes No Accounting Method: Cash Accrual Other (describe) Accounting Period: Calendar Year (Jan Dec) Fiscal Year Legal Structure: Sole Proprietorship/Single Member LLC Other(describe) INCOME Gross Receipts/Sales Other Income (explain) Returns and Allowances to Customers INVENTORY (Skip this section if you do NOT manufacture or store inventory) Method Used to Value Inventory: Cost Lower of cost or market Other (describe) Inventory at the beginning of tax year (if any) Purchases less cost of items withdrawn for personal use Cost of labor to produce inventory Materials and supplies for inventory production Other costs (provide description) Inventory at end of tax year (if any) OPERATING EXPENSES Advertising/Marketing Annual Report Fees for LLC and Incorporated Businesses Bank Charges & Merchant Fees Commissions and fees Computer Software Contract Labor (Note: you may need to issue Forms 1099 MISC if amount is $600 or more) Education/Training/Seminars Gifts (Limited to $25 per customer per year; certain exclusion apply) Insurance (Health/Life/Dental) (Do NOT include amounts for owners/self employed) Insurance (Liability) Internet Access Janitorial Legal/Accounting/ Professional Fees Licenses & Permits 11

12 OPERATING EXPENSES (CONTINUED) Meals & Entertainment Mortgage Interest (for commercial property) Non Vehicle Repairs & Maintenance Office Expenses Office Supplies (Do NOT include office equipment here) Other Non Vehicle Interest (Loan, Credit Cards, etc.) Pension & Profit Sharing Plans Postage/Shipping/Freight Professional Dues/ Subscriptions/ Memberships (No country clubs, health clubs, etc.) Rent (Other provide description) Rent (Vehicles & Machinery) Security/Alarm Fees (for commercial property) Small Tools (minimal cost only) Supplies/Materials (Do NOT include office supplies here) Taxes Business Property Taxes Payroll (Employer portion of Social Security, Medicare, and unemployment taxes) Taxes Real Estate (for commercial property) Taxes State Business Taxes Telephone (1st line in house MUST be excluded. Include portion of bill attributable to business use for other phones) Travel Personal Vehicle (See Page 14 "Vehicle Mileage" worksheet) Travel (See IRS Publication 463 for more detail) Utilities (Electric/Gas/Water/Trash for commercial property not home) Wages (Do NOT include amounts paid to subcontractors here) Other (provide detail) Other (provide detail) Other (provide detail) MISCELLANEOUS Personal Withdrawals and Shareholder/Member Distributions Health Insurance Premiums for Self Employed/Partner/2% or more S corp Shareholder Other (provide detail) CHECKLIST OF ADDITIONAL ITEMS TO PROVIDE for 2014 (if Simply Taxes, LLC did not prepare): Were 1099 MISC required to be issues? Circle: Yes or No If required, have they been filed or do you have plans to file them? Circle: Yes or No Note: These specific questions are on the return and will be answered according to the aforementioned answers. It is advised to review the following article. misc filing requirements for small businesses Copies of Form 1099 MISC received (if any) Copies of Form 1099 MISC given to contractors (if any) Copies of 1099 K received (if any) Sales tax returns (if any) Copies of IRS Forms 941/944 and State Unemployment reports (if you had employees) Copies of IRS Forms W 2/W 3 (if you had employees) Copy of IRS Form 940 (if you had employees) Copy of IRS Letter CP 575 A issuing the EIN (if any) ADDITIONAL COMMENTS/QUESTIONS Please feel free to leave comments or ask questions. 12

13 2014 RESIDENTIAL RENTAL ACTIVITY The purpose of this worksheet is to assist with the organization of taxable income and tax deductible expenses related to rental property. Adequate records should be available upon a potential audit in order to deduct an expense. Adequate records include (but are not limited to) keeping track of receipts, documentation of business purpose related to expenses, and driving logs. It is recommended that you review IRS Publication 527 Residential Rental Property (Including Rental of Vacation Homes) ( Rental Property* Rental Property Full Address Property Type (Single Family, Duplex, etc.) Owner of Property (Taxpayer, Spouse, or Both) CLIENT COMMENTS/NOTES: A B C Were any of the properties used by you or your family more than the greater of Did you actively participate in the management of the rental property? Circle: Yes or No 14 days or 10% of the total days rented at fair market value? If yes, indicate You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental the property. property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. Management decisions that may count as active participation include approving Were any rental properties sold during 2014? If yes, indicate the property. new tenants, deciding on rental terms, approving expenditures, and other similar decisions. Were 1099 MISC required to be issues? Circle: Yes or No If required, have they been filed or do you have plans to file them? Circle: Yes or No Note: These specific questions are on the return and will be answered according to the aforementioned answers. It is advised to review the following article. misc filing requirements for small businesses *Please provide a copy of the HUD 1 statement for all new purchases or disposals that occurred during INCOME PROPERTY A PROPERTY B PROPERTY C CLIENT COMMENTS/NOTES: Rents Collected (Include prepaid rent) Deposits (Non refundable) Expenses Paid by Tenant on behalf of Landlord Property and/services in Lieu of Rent Early Lease Termination Fees Other Income (Provide detail) EXPENSES PROPERTY A PROPERTY B PROPERTY C CLIENT COMMENTS/NOTES: Advertising/Marketing Personal Vehicle Mileage (See Page 14 "Vehicle Mileage" worksheet) Rental Vehicle Cleaning & Maintenance Lawn Care Commissions Homeowner's Insurance Legal/Accounting/Professional Fees Management Fees Mortgage Interest (per Form 1098) Other Interest (Not on Form 1098) Repairs (Not major improvements) Supplies Utilities (Electric/Gas/Water/Trash) Pest Control HOA Fees Travel Meals & Entertainment Real Estate Taxes Taxes & Licenses Other (describe) MAJOR PURCHASES/FIXED ASSETS Provide detail on ALL new fixed assets. Fixed assets are generally those with a useful life expected to exceed one year. Examples include roofing, electrical modifications, flooring, appliances, etc. See Page 15 "Fixed Assets" worksheet. 13

14 2014 VEHICLE INFORMATION (Use a separate sheet for each business) The purpose of this worksheet is to assist with the organization of tax deductible expenses related to vehicles. Adequate records should be available upon a potential audit in order to deduct an expense. Adequate records include (but are not limited to) keeping track of receipts, documentation of business purpose related to expenses, and driving logs. It is recommended that you review IRS Publication 463 Travel, Entertainment, Gift, and Car Expenses ( pdf/p463.pdf) Standard Mileage Rates: $.56/mile Vehicle #1 Vehicle #2 Vehicle #3 Vehicle #4 Enter Vehicle Year, Make, and Model: Enter NUMBER of Business Miles Driven During the Year Enter NUMBER of Commuting Miles Driven During the Year Enter NUMBER of Personal Miles Driven During the Year Total of Business + Commuting + Personal Miles Driven During the Year Tolls & Parking Fees Interest on Vehicle Loans When did you first use the vehicle for business purposes (month/day/year)? Was your vehicle available for personal use during off duty hours? Y / N Y / N Y / N Y / N Do you (or your spouse) have another vehicle available for personal use? Y / N Y / N Y / N Y / N Do you have written evidence to support your deduction? Y / N Y / N Y / N Y / N VEHICLE OPERATION EXPENSES (Do NOT complete if opting to use the Standard Mileage Rate of $.56/business mile) Fuel (Gas, Diesel, etc.) Repairs & Maintenance Insurance Tags & Registration Fees Vehicle Washes/Detailing Garage/Storage Rent Lease Payments Original Cost/ Purchase Date Other Other Other 14

15 2014 FIXED ASSETS INFORMATION (Use a separate sheet for fixed assets used for different purposes (i.e., rental activity, business, employee expenses). The purpose of this worksheet is to assist with the organization of tax deductible expenses related to fixed assets. Fixed assets are generally items with a useful life expected to exceed a year (i.e., furniture, machinery, printers/computers, etc.). Adequate records should be available upon a potential audit in order to deduct an expense. Adequate records include (but are not limited to) keeping track of receipts, documentation of business purpose related to expenses, and driving logs. It is recommended that you review IRS Publication 946 How to Depreciate Property ( pdf/p946.pdf) Note to New Clients: Please provide a copy of your prior year depreciation schedules. Description of Asset Purchased List any new equipment, machinery, furniture, vehicles, etc. that you have purchased during 2014 (including items purchased by credit card and loan). Date Place in Service for Business (mm/dd/yy) Cost New/Used Trade- In/Exchange of Another Asset? Description of Asset Disposed of or Removed List any assets that have been disposed of or removed AND reported on a prior years return. Date Place in Service for Business (mm/dd/yy) Cost New/Used Trade- In/Exchange of Another Asset? 15

16 1) Are you an "employee" claiming business use of your home? Answer "No" if self employed. If Question 1 is NO, go to question 4, otherwise continue to Question 2. 2) Did your employer REQUIRE you to use your home for business for the employer's convenience? If Question 2 is NO, then STOP! You do NOT qualify to claim the business use of your home. 3) Did you rent any part of your home to your employer AND use the rented part to perform services as an employee for that employer? If Question 3 is YES, then STOP! You do NOT qualify to claim the business use of your home. 4) Was part of your home used regularly and exclusively as your principal place of business OR used for storage of inventory or product samples OR used as a daycare facility? If Question 4 is NO, then STOP! You do NOT qualify to claim the business use of your home. HOME DETAILS 2014 BUSINESS USE OF HOME (Use a separate sheet for each home used for business) The purpose of this worksheet is to assist with the organization of tax deductible expenses related to business use of a home. Adequate records should be available upon a potential audit in order to deduct an expense. Adequate records include (but are not limited to) keeping track of receipts, documentation of business purpose related to expenses, etc. It is recommended that you review IRS Publication 587 Business Use of Your Home ( pdf/p587.pdf). Used ELIGIBILITY QUESTIONS 5) Enter the NUMBER of "square feet" of your home that was used regularly and exclusively as your principal place of business OR used for storage of inventory or product samples OR used as a daycare facility. 6) Enter the total NUMBER of "square feet" of your home. 7) If you operate a daycare facility in your home, multiply the number of days during the year used as a daycare facility by the number of hours per day. Enter the TOTAL HOURS. HOME EXPENSES Enter ALL expenses at 100% ( or check here to use the flat rate of $5/ sq. ft if office space is 300 sq. ft. or smaller) (Direct Expenses: Benefit the business part of your home (i.e., cost of painting, repairs made to a specific area used for business) (Indirect Expenses: Required for the upkeep and running of your entire home (i.e., alarm system, HVAC, etc.) Repairs & Maintenance Mortgage Interest (reported on Form 1098) Mortgage Interest (NOT reported on Form 1098) Mortgage Premiums Insurance Real Estate Taxes Telephone (1st line in house MUST be excluded) Utilities (Electric/Gas/Water/Trash) Rent HOA/Condo Fees Pest Control Alarm System/Security Monitoring Other Other Direct Expenses Indirect Expenses Home Depreciation (Renters should skip this section) Enter the SMALLER of the adjusted basis, or fair market value of your home (only if this is your first year claiming this deduction) Enter the value of the land (only if this is your first year claiming this deduction) Enter the date you started using the home for business Enter the date you stopped using the home for business (if applicable) Amount 16