Denny & Company, LLP offers year-round services as well, including accounting and bookkeeping, expert IRS representation, financial reporting, business consulting and more.
“One of the things that we’re very good at is helping you anticipate tax issues that are going to bite you later, and that doesn’t necessarily have to do with preparing your taxes,” said Santa Clarita CPA Matt Denny.
An example of this would be if an elderly parent is considering adding their adult child to the deed of their house so it can be managed more easily if they become mentally incompetent or pass away, Denny noted.
“There can be problems with that, because normally when you inherit your parents’ home, you get a step up in basis to the market value as of the date of death or within a certain amount of time of the date of death,” Denny explained. “If you take the home as a gift now, then five years from now when the person finally dies and you actually get the inheritance and you try to sell it, your basis is whatever your folks paid for it in the first place, plus other costs, rather than having it go up to the current market value.”
Related Article: Reasons To Turn To A Santa Clarita CPA For Tax Returns
This potential tax issue can be avoided by opting to establish powers of attorney or a trust instead, according to Denny.
“We do not practice law so we would give a referral to an estate or trust attorney for that, but we can certainly outline the ramifications taxwise to making simple mistakes like that,” Denny said. “And in some cases, we have been able to get the IRS to actually roll it back when it was done in such a way that it was obvious that their intent was not to actually own the house or do anything with it until after the parent had died.”
Expert IRS representation for an audit is another common service the Santa Clarita CPA offers at Denny & Company, LLP. Though some individuals might think they can represent themselves, Denny advised against this.
“You really should not represent yourself, and the main reason for that is that they will ask you questions and you will answer in such a way that you’re providing them information that may not be in your favor,” he said. “Whereas someone who’s trained in how to do this and has a lot of experience will answer the questions for you in such a way that it will be to your advantage.”
Additionally, choosing a CPA in Santa Clarita as representation takes the emotion out of the process, which usually results in a better outcome, according to Denny.
“A lot of times, people will call the taxing authorities and start screaming at them,” he said. “They’re just like you and me, and they’re behind the phone, they’re trying to do their job the best they can. We have a way of keeping it dispassionate, and very often, we have much better results.”
Free 30-minute consultations are available at Denny & Company, LLP, which alone could help a person save thousands of dollars, Denny pointed out.
“It doesn’t cost anything to call and see if we can be of help,” he said. “Very often, just on the phone call, we can save you tens of thousands of dollars by talking you out of making a transaction that’s going to cost you down the road.”
The Santa Clarita CPA firm Denny & Company, LLP was established in 1984, and is a full-service firm of Certified Public Accountants in Santa Clarita, including Partners Matt Denny and Carolyn Denny. The Santa Clarita accountants work with small businesses and individuals, specializing in catering to each client’s unique needs and desires using a flexible approach. As a CPA in Santa Clarita, Matt Denny shares his knowledge and experience regularly on “Common Ground” on KHTS Radio. Those looking for the best CPA in Santa Clarita or a “CPA near me” can contact Denny & Company, LLP for more information today.
23929 Valencia Blvd. Suite 304
Valencia, CA 91355