Frequently Asked Questions

This is one of the most common tax questions we hear. In many cases, if you have owned and lived in your home for at least 2 of the last 5 years, you may be able to exclude up to $250,000 of gain from your taxable income. In simple terms, that means a large portion of the profit from the sale of your home may not be taxed. Since every situation is different, Flynn Accounting can help you understand what to expect before you sell.

No, they don't have to be. You can make a Qualified Charitable Distribution (QCD).

Required minimum distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts. They generally begin at age 73, increasing to age 75 for those born in 1960 or later. The first RMD is due by April 1 of the following year, while subsequent RMDs are due by December 31 annually. Delaying the first withdrawal means taking two RMDs in one tax year. Employees may delay RMDs from their current employer’s 401(k) until retirement, unless they own 5% or more of the business; this exception does not apply to IRAs. Accounts subject to RMDs include traditional, SEP, and SIMPLE IRAs, 401(k)s, 403(b)s, 457(b)s, and profit-sharing plans. Roth IRAs and designated Roth workplace accounts are exempt during the original owner’s lifetime. RMDs are calculated by dividing the account balance as of December 31 of the previous year by the applicable IRS life expectancy factor. IRA RMDs can generally be combined and withdrawn from one or more eligible IRAs, while employer-plan RMDs must generally be calculated and withdrawn separately for each plan. Failing to take the required amount may result in a 25% excise tax on the shortfall, reduced to 10% if corrected within the applicable correction period.

It varies among professionals, depending on how well everything is organized.

Certified Public Accountants (CPAs) are state-licensed accounting professionals who manage financial records, file tax returns, perform audits, and provide strategic financial advice for individuals, businesses, and government agencies. While general accountants can perform basic bookkeeping and tax preparation, CPAs hold an official state license. This credential gives them exclusive legal privileges, such as auditing public company financial statements, signing official reports submitted to the SEC and holding unlimited authority to represent clients during IRS audits or disputes.