WELCOME TO DAVID K. RAYE, CPA, P.C.

davidraye-charlotte-cpa

The accounting firm of David K. Raye, CPA, P.C. is dedicated to excellent client service.  Founded in October, 1996, we have consistently provided exceptional assistance and advice in our client’s tax, financial and business affairs.  We have many loyal clients and would like to have the opportunity to serve your tax and accounting needs.

We want you to get the best financial and tax help possible. Explore our web site to discover the many ways we can serve you. If you have a question that is not addressed here, please contact us via the contact form located at the bottom of this page or by phone at (704) 887-5298

You’ll find that we can take much of the worry and stress out of your financial life. We are ready to assist you in —

  • keeping your taxes as low as the law allows
  • building your personal wealth through sound tax and financial planning
  • designing recordkeeping and accounting systems that help your business function efficiently and profitably
  • helping you solve your business problems
  • preserving your estate for your intended heirs

SERVICES

Professional Tax Return Preparation

Today’s tax laws are so complicated that unless your financial affairs are extremely simple, chances are you will benefit from at least occasional help from a tax professional. It is too easy to overlook deductions and credits to which you are entitled if you prepare only one return a year. Even the use of computer software is no substitute for the assistance of a seasoned tax preparer.

We can prepare returns for a wide range of entities including individuals, corporations, partnerships, LLC’s, estates, trusts and non-profit organizations.

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Business Solutions

Business problems and their solutions are as varied as the kinds of businesses in existence. There are some issues, however, that every business faces. Whatever your business concerns, we can provide the help you need.

Whether you are starting a business or operating an on-going concern, we can help you select the proper organizational structure and help you secure adequate financing. We will work with you and your banker, lawyer, insurance agent, and other advisers to solve your business problems.

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Accounting Services

We can help you design an accounting system that is right for your business so that you will always have current and relevant financial information at your fingertips.

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TAX RESOURCES

 

Tax Organizer

Organize your tax information with our free Tax Organizer.
After you schedule your tax appointment, please print and fill out the organizer. Bring the completed organizer with you to your appointment.

OPEN TAX ORGANIZER NOW

Download Adobe Reader

You will need the free Adobe Reader to view and print the Tax Organizer. If you do not have Adobe Reader installed on your computer, you may download it without charge from the Adobe website.

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Calculators

You can get rough answers to your financial questions by using the following calculators and making a few estimates on your part. If we can be of assistance or answer questions for you, please call us.

OPEN CALCULATORS 

Track Your Tax Refund


TESTIMONIALS

  • I’ve worked with David since 2000. Over the last 16 years, he’s taken care of all my business tax needs and personal tax returns. He helped me during the growth and sale of my firm and is taking care of my newest business ventures. I appreciate the extra care he gives his clients and his ability to make complex tax issues simpler for me. I’d recommend him to anyone needing help with their taxes

    – Linda Bready

    Client
  • David has been our CPA for both our business and personal accounts for 19 years.  David is always detail oriented in his work and always delivers the finished product as promised.  Over the past 19 years of working with us, I am constantly impressed with his work ethic and expertise in preparing our different types of tax returns.  I would highly recommend David to any business or individual who is looking for a CPA.

    – J. Dean Lackey, RPh, MBA, Med Data Research, Inc.

    Client
  • I met David Raye in 2009 while participating in the Steele Creek Toastmasters club.  David was developing and honing his public speaking skills.  And he put his presentation skills to work by becoming the president of his Rotary Club.     

    Needless to say, I was/am impressed with David’s personal and professional work ethic.  Over the last 9 years David has continuously demonstrated the ability to stay at the forefront of his accounting profession and he has continued to expand the accounting services and financial consulting offerings of his business.  

     I am totally confident in the accuracy, the timeliness, and the ethical counsel that David provides to me on behalf of my business and family tax portfolios.  And, I look forward to continuing our professional relationship and personal friendship in the coming years.

     Paul Bruno

    Founder/President, REFocus, Inc.   

    Web Client
  • Since 2011, I have trusted David Raye to provide personal accounting services and I have referred many friends and colleagues to David.  David has always delivered as promised and his advice and delivery have always been spot on.  I would highly recommend David to anyone looking for a professional accountant and have done so often.  

    Jim Pfeiffer

    Client

TAX BLOG

One part of the Tax Cuts and Jobs Act that has not received a lot of attention is the change of calculation for the so-called “kiddie tax”. This tax applies to children who have unearned income in excess of $2,100.  The kiddie tax applies to children age 18 and under or age 19-23 for full-time students whose earned income is less than or equal to 50% of their support.

Under the old law, unearned income in excess of $ 2,100 was taxed at their parent’s income tax rate but the new law subjects this income to the same rates as a trust. As a result, unearned income would hit the top tax rate of 37% at the very low income level of $ 12,500.  The parent’s rate would only be that high if the parent’s income is over $ 600,000.  Therefore, the strategy of grandparents leaving a grandchild a traditional IRA, with the goal of achieving a longer distribution period may not be as attractive as it used to be.

Given this new reality, what can be done to work around the “kiddie tax”?

  • You can still gift modest amounts to children in UTMA accounts and keep their investment income below $2,100 by investing in growth stocks vs. dividend payers.
  • If a college age child has already inherited a large IRA, then reduce their distributions to the minimum required, borrow money to cover tuition and then pay off the debt with larger distributions once the child turns 24.
  • Name older children (age 24 and above) as beneficiaries of your traditional IRAs. Younger children could still be beneficiaries of Roth IRAs.

Leaving traditional IRAs to children or grandchildren is still a viable strategy but care must be taken to avoid or minimize the kiddie tax.

 

 

David K. Raye, CPA, P.C.                     704-887-5298             www.davidrayecpa.com

 

*The information in this blog post is general in nature and not intended as specific advice.  Please consult a tax advisor to see how this information applies to your specific situation. 

An investment vehicle that may be worth a second look in the wake of tax reform is Real Estate Investment Trusts or REITs. REITs are corporations that primarily invest in real estate and produce income from rental properties or from buying and selling properties.  They are usually sought out for their ability to produce an income stream since 90% of their income is paid out in the form of dividends.

The 20% deduction for pass-through income that was part of the recent tax law change will apply to holders of REITs. This means that investors in REITs will only pay tax on 80% of the dividends earned.  This automatically increases the return on investment for REITs making them an attractive investment.

The 20% deduction took effect January 1, 2018 and can be claimed on your personal tax return starting with the 2018 tax year. Taxpayers in the top income tax bracket of 37% will have an effective rate of 29.6% on their REIT dividends. Please see an investment advisor to find out what REITs may be right for you.

 

 

David K. Raye, CPA, P.C.                     704-887-5298             www.davidrayecpa.com

 

*The information in this blog post is general in nature and not intended as specific advice.  Please consult a tax advisor to see how this information applies to your specific situation. 

The choice of beneficiaries for your IRA or other retirement plans is one of many financial decisions that must be made during your lifetime. Generally, the goal is to maximize the deferral period so that the account can continue to grow tax deferred as long as possible.  Here is a quick rundown of the rules applicable to different types of beneficiaries.

Surviving spouses are the most common beneficiaries and generally get the most favorable treatment.  A surviving spouse can:

  • Elect to treat an IRA as their own if they are sole beneficiary
  • Defer Required Minimum Distribution (RMD) until the year the decedent/owner would have turned age 70 ½. The spouse would then take RMDs based on their own life expectancy.

The timing of RMDs for non-spouse beneficiaries varies depending on whether the decedent had already begun taking RMDs themselves.  When an owner dies before this point, RMDs for a non-spouse beneficiary can be calculated over the beneficiary’s life expectancy.  When the owner dies on or after their required beginning date, RMDs for the non-spouse beneficiary will be calculated based on the longer of the beneficiary’s life expectancy or the deceased owner’s remaining life expectancy.  Distributions would be required to start by December 31 of the year following the owner’s death.

If there are multiple beneficiaries, the life of the oldest is generally used but this can be avoided by splitting the IRA into separate accounts.  Then each individual beneficiary can take distributions based on their own life expectancy.  Splitting the account is especially crucial if there is a large age gap between beneficiaries.

It is also important to name contingent beneficiaries.  These individuals would be next in line to receive the IRA assets if the primary beneficiary dies or disclaims their interest.  IRAs that include a non-person beneficiary such as a trust or charity must take out that entity’s share of the IRA by September 30 of the year following the owner’s death.

These are just some of the general rules applicable to this very complex area of tax law. For more information on inherited IRAs, please call my office.

 

David K. Raye, CPA, P.C.                     704-887-5298             www.davidrayecpa.com

 

*The information in this blog post is general in nature and not intended as specific advice.  Please consult a tax advisor to see how this information applies to your specific situation. 


Contact

13850 Ballantyne Corporate Place, Ste. 500 Charlotte, NC 28277 Ph:(704) 887-5298

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