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Summary of What This Blog Covers:

• Recognize When DIY Tax Software No Longer Fits Your Needs
  This blog outlines key indicators that your financial situation has outgrown platforms like TurboTax or TaxAct especially if you own rental properties, run a business, invest across states, or manage multiple income streams. It explains why these complexities require more than just automated prompts.
  
  
• Understand the Risks and Costs of Sticking with DIY Tools
  From missing valuable deductions to increasing audit risks, the blog discusses how relying on basic tax software can lead to overpayments, errors, and lost tax-saving opportunities. It emphasizes the value of having a personalized strategy guided by a licensed CPA.
  
  
• Explore the Strategic Value a CPA Brings to Growing Professionals
  The article highlights how a certified public accountant provides year-round tax planning, multi-entity coordination, and compliance with state and federal rules like FBAR filing and franchise tax. It positions a CPA as a proactive advisor, not just a tax preparer.
  
  
• See How Insogna CPA Supports High-Earning Clients Beyond Tax Season
  Featuring flat-rate pricing, audit defense, and personalized tax strategies, the blog shows how Insogna CPA, a leading CPA firm in Austin, Texas, helps professionals and business owners shift from filing taxes to building long-term financial plans tailored to their income and lifestyle.

Let’s get real for a moment. TurboTax and other DIY tax software have their place. They’re great for simple situations such as W-2 income, a few donations, maybe some student loan interest. But if your financial life has evolved and it probably has if you’re reading this, then it’s time to talk about why your tax strategy should, too.

You’ve grown beyond the standard deductions and drop-down menus. You’ve got income coming in from multiple directions. Maybe you’ve launched a business, bought a rental property, started investing seriously, or even expanded across state lines. And yet, you’re still relying on TurboTax Online, H&R Block Near You, or TaxAct to keep up with it all?

It’s time to upgrade.

At Insogna CPA, a leading CPA firm in Austin, Texas, we help professionals, business owners, and investors move from tax filing to tax strategy. Here’s how to know if you’ve outgrown DIY software and what working with a proactive Austin, TX accountant can do for your bottom line.

1. You Have Rental Properties or Multiple Income Streams

In the early days, your tax return probably fit on two pages. But now? You’ve got:

• Rental income from Airbnb or long-term tenants
  
  
• Income from 1099 consulting gigs or side hustles
  
  
• Dividends, capital gains, RSUs, and possibly even cryptocurrency trading
  
  
• Multiple bank accounts, vendors, and maybe an LLC or two
  
  

The IRS sees these as different buckets of income, each with its own rules. And TurboTax Free or TaxFreeUSA just isn’t built to ask the kind of nuanced questions that save you money when you’ve got more going on.

Why It’s a Problem:

• Rental property tax rules involve depreciation, passive loss limitations, cost segregation, and 1031 exchanges.
  
  
• Self-employed income triggers self-employment tax and requires quarterly estimated payments.
  
  
• You may be eligible for deductions or credits that software can’t identify without a conversation.
  
  

A small business CPA in Austin or tax advisor near you will structure your income and expenses properly, track it in real time, and build a long-term plan that aligns with your financial goals.

2. Your Income Is Growing, and So Are Your Tax Liabilities

More income equals more tax exposure. It also increases your chances of making costly mistakes—mistakes that software simply won’t catch or plan around.

Once your adjusted gross income hits certain thresholds, deductions and credits begin to phase out. You may also become subject to the Alternative Minimum Tax (AMT) or the Net Investment Income Tax. These rules are complex, and they shift each year.

Why It’s a Problem:

• Online software doesn’t offer strategic planning to keep you in a lower tax bracket.
  
  
• You may be overpaying because you’re unaware of income deferral strategies or entity structuring options.
  
  
• You might be missing opportunities to reduce your effective tax rate.
  
  

A certified public accountant near you can help you set up retirement plans, HSA contributions, or S-Corp elections. All of which can lower your taxable income if done correctly and at the right time.

3. You Want More Than a Cookie-Cutter Return

TurboTax is fast, but it’s not flexible. It doesn’t ask about your growth strategy. It doesn’t analyze your business model. It doesn’t help you think long-term.

You’ve moved beyond a one-size-fits-all approach. Whether you’re a solopreneur, landlord, investor, or multi-entity business owner, your financial strategy should reflect the complexity of your life, not a series of yes-or-no prompts.

Why It’s a Problem:

• You need help structuring your business—LLC, S-Corp, or partnership?
  
  
• You want to plan your income timing to reduce year-end surprises.
  
  
• You may be able to use bonus depreciation or Section 179 deductions that TurboTax doesn’t optimize for.
  
  

With a proactive CPA in Austin, Texas, you get personalized guidance, not automated guesswork. We ask better questions so you get better answers.

4. You’re Probably Missing Deductions (And You Know It)

The biggest complaint we hear from new clients? They feel like they’re overpaying taxes because they’re not confident they’re claiming everything they’re entitled to.

And they’re usually right.

Common Missed Opportunities:

• Home office deduction (especially post-pandemic)
  
  
• Vehicle expenses for business use
  
  
• Depreciation of rental or business property
  
  
• Continuing education, coaching, or certifications
  
  
• Charitable giving through donor-advised funds
  
  
• Business use of your cell phone, internet, and software subscriptions
  
  

At Insogna CPA, we walk you through these line by line. Using tools like QuickBooks Online Accountant, FreshBooks, ZohoBooks, or WaveApp, we help you set up your systems so deductions are tracked properly, audit-proofed, and maximized every year.

You’re no longer asking, “Can I deduct this?” You’re planning for it and that’s the difference.

5. An IRS Audit Would Send You Into Panic Mode

Let’s say the IRS sends you a letter. Suddenly, they want documentation on your deductions from three years ago. You scramble to find receipts. You realize you didn’t back up your files. And then you remember TurboTax can’t defend you in an audit.

Why This Matters:

• The IRS and state tax agencies (yes, including franchise tax boards) are becoming more aggressive.
  
  
• If you make over $200,000, your audit risk increases.
  
  
• Multi-entity, multi-state investors are more likely to be flagged for “random” reviews.
  
  

At Insogna CPA, we build your returns with audit defense in mind. And if an audit ever happens, we handle it for you. We’ll respond to notices, provide documentation, and communicate directly with the IRS on your behalf.

Whether you’re dealing with the IRS, FBAR filing, or a state-level audit, our team of tax professionals near you, enrolled agents, and certified CPAs have your back.

6. You Want More Than a Tax Return, You Want a Tax Strategy

Let’s say it clearly: filing is just the finish line. Tax planning is the race. And the smartest business owners and professionals know you can’t win that race without a strategy.

A Tax Strategy Includes:

• Timing capital gains and business purchases
  
  
• Choosing the right business entity (LLC, S-Corp, or partnership)
  
  
• Coordinating multi-state income filings
  
  
• Planning for wealth transfer, estate tax, or exit strategies
  
  

Whether you’re building a portfolio of rental properties, scaling a startup, or managing assets across states or countries, we help you build a plan that minimizes your liabilities and maximizes your opportunities.

That’s what you don’t get from TurboTax Free, Liberty Tax, or any drop-in tax prep service. You get it from a true partner, your own CPA certified public accountant.

Bonus: Your Time Is Worth More Than a Tax DIY Session

You’re running a business. Managing a team. Investing in your future. Your time is valuable and spending it trying to figure out how to categorize deductions or navigate state tax filings is not the best use of it.

At Insogna CPA, we free up your time by taking the tax burden off your plate. No more late nights. No more tax stress. Just clean, efficient filings and smart, strategic planning delivered by a responsive CPA firm in Austin, Texas that speaks your language.

What You Get With Insogna CPA

• Flat-rate pricing—no mystery invoices
  
  
• Dedicated support from a tax advisor in Austin, not a chatbot
  
  
• Proactive planning for franchise tax, self-employment tax, and multi-state income
  
  
• Integration with accounting tools like FreshBooks, WaveApp, Zohobooks, and QuickBooks Online Accountant
  
  
• Deep expertise in taxation accounting, including FBAR filing, S-Corp elections, and real estate strategy
  
  
• A team of certified CPAs, chartered professional accountants, and tax consultants near you

It’s Time to Upgrade Your Tax Strategy

If you’re making good money but still relying on DIY tax tools or generic tax places near you, you’re missing out. Your tax software won’t grow with you. But a proactive Austin tax accountant will.

Schedule your consultation with Insogna CPA today, and let’s build a customized tax strategy that actually works for your business, your investments, and your future.

Because successful people don’t just file, they plan. Let’s do that together. Now. And for the long run...

Summary of What This Blog Covers:

• Compare Sole Proprietorship and LLC Structures for Real Estate Investing
  This blog outlines the key differences between owning rental properties as a sole proprietor versus forming an LLC. It explores the simplicity of sole proprietorships, their lack of liability protection, and the long-term advantages of creating an LLC for scalability, asset protection, and tax flexibility.
  
  
• Learn When an S-Corp Election Makes Strategic Sense
  The article breaks down when and why real estate professionals such as flippers and short-term rental owners should consider electing S-Corp status. It highlights the potential savings on self-employment taxes, increased retirement plan options, and compliance considerations tied to this advanced tax strategy.
  
  
• Understand the Tax Implications of Entity Choice Especially Across States
  With multi-state real estate ownership becoming more common, the blog emphasizes how your business structure affects state-specific obligations like franchise taxes, non-resident filings, and FBAR reporting. It makes the case for working with a proactive CPA to avoid double taxation and audit risks.
  
  
• Discover How Insogna CPA Helps Real Estate Investors Build Strong Foundations
  From entity formation and tax planning to franchise tax compliance and year-round advisory, the blog showcases how Insogna CPA—an experienced CPA firm in Austin, Texas—supports real estate investors with flat-rate pricing, tailored tax strategies, and full compliance services for long-term success.

So, you’ve bought your first rental property (or your fifth). You’ve signed the deed, started collecting rent, maybe even set up a contractor on speed dial. But there’s still one question keeping you up at night or at least popping into your mind every time you look at your bank account:

Should I be doing this under an LLC? Or is it fine to keep it in my own name as a sole proprietor?

If you’ve been around the real estate investing space, you’ve heard plenty of opinions. But what’s the right answer for your situation? The short version: it depends on your goals, risk tolerance, and tax planning strategy.

At Insogna CPA, a trusted CPA firm in Austin, Texas, we work with real estate investors of all sizes from weekend landlords to seasoned multi-state investors. In this guide, we’ll walk you through the pros and cons of each option, introduce the S-Corp twist, and help you decide what structure actually supports your long-term strategy.

Option 1: Owning Real Estate as a Sole Proprietor

What It Means

When you buy property in your own name and don’t register a business entity, you’re operating as a sole proprietor by default. There’s no paperwork involved, no entity fees, and no need to register with the state. Sounds simple, right?

Benefits of Sole Proprietorship

• No Formation Costs: You avoid the time and expense of forming and maintaining an LLC or corporation.
  
  
• Simple Tax Filing: Your rental income is reported on Schedule E of your personal return. No need for separate corporate filings or complex K-1s.
  
  
• Minimal Compliance: No annual reports, no business license renewals (in most states), and no franchise tax (hello, Texas).
  
  

Drawbacks to Consider

• Unlimited Personal Liability: If something goes wrong—say, a tenant sues over an injury or a property-related issue—you’re personally responsible. Your home, savings, and other assets are at risk.
  
  
• Harder to Separate Finances: Without a separate entity and business bank account, tracking expenses becomes murky fast.
  
  
• Limited Tax Planning Opportunities: You don’t get the flexibility to make an S-Corp election, and your options for income deferral and retirement contributions are more limited.
  
  

Who This Works Best For

If you’re a new investor with one or two properties, operating in low-risk markets, and your main concern is simplicity, a sole proprietorship might suffice for now.

But once you start building a portfolio or want to protect your personal assets, it’s time to consider an upgrade.

Option 2: Owning Real Estate Through an LLC

What It Means

A Limited Liability Company (LLC) creates legal separation between your real estate holdings and your personal life. It’s the go-to structure for real estate investors seeking flexibility and protection.

At Insogna CPA, our team of certified public accountants, chartered public accountants, and licensed CPAs regularly helps investors form, maintain, and optimize LLCs based on their real estate and tax strategy.

Advantages of an LLC

• Asset Protection: Your personal assets are shielded from property-related liabilities and lawsuits.
  
  
• Cleaner Financials: You’ll open a business bank account, file business taxes, and track all income and expenses through accounting tools like QuickBooks Online Accountant.
  
  
• Flexible Tax Treatment: An LLC is a “pass-through” entity by default, but you can also elect S-Corp taxation to reduce self-employment taxes. More on that later.
  
  

Challenges to Keep in Mind

• Startup and Ongoing Costs: You’ll need to pay state filing fees, possibly annual franchise taxes (looking at you, California), and handle compliance requirements like annual reports.
  
  
• Financing Hurdles: Some lenders won’t underwrite loans for LLCs or may charge higher interest rates on non-owner-occupied properties owned by entities.
  
  
• No Automatic Tax Savings: Just forming an LLC won’t lower your taxes unless you implement a smart strategy.
  
  

Best Fit For

LLCs are ideal for investors who:

• Own multiple properties
  
  
• Have partners
  
  
• Are scaling quickly
  
  
• Want liability protection
  
  
• Need better tax planning options
  
  

Our clients often find that forming an LLC gives them more clarity, professionalism, and structure especially when moving beyond their first or second deal.

Option 3: Making the S-Corp Election (Advanced Strategy for Active Investors)

What It Means

An S-Corporation is a tax election you can make if you’re already structured as an LLC or corporation. It’s not for everyone, but for certain types of income, it can create substantial tax savings.

Why You’d Elect S-Corp Status

• Save on Self-Employment Tax: As an S-Corp, you pay yourself a reasonable salary and take the rest of your profit as distributions, which aren’t subject to payroll taxes.
  
  
• Higher Retirement Contribution Limits: S-Corps can open Solo 401(k)s and other plans to maximize retirement savings.
  
  
• Increased Professional Credibility: Banks and business partners often prefer to work with formalized entities.
  
  

Why It Doesn’t Work for Everyone

• Added Complexity: You’ll need payroll services, additional filings, and possibly franchise tax
  
  
• Passive Income Doesn’t Benefit: If you’re holding long-term rentals, the S-Corp structure offers little to no tax benefit and could complicate things.
  
  
• Ownership Restrictions: Only individuals (and some trusts) can be shareholders. No partnerships or foreign owners.
  
  

Best For

• Flippers, wholesalers, short-term rental operators, and agents with significant 1099 income
  
  
• High earners looking to reduce self-employment taxes
  
  
• Real estate professionals actively involved in the day-to-day management of properties
  
  

At Insogna CPA, a leading Austin accounting firm, we help you evaluate the S-Corp election using detailed financial modeling. We’ll help you understand whether it makes sense and manage the paperwork if you decide to go for it.

The Multi-State Twist: Why Entity Choice Matters Even More

If you own property in more than one state or plan to, you need to consider multi-state tax implications. Every state has its own rules around:

• LLC registration and compliance
  
  
• Franchise tax obligations
  
  
• Non-resident income tax filing
  
  
• FBAR filing if any entity owns foreign assets
  
  

Failing to plan can lead to double taxation, late fees, and even audit triggers. That’s why smart investors work with a specialized CPA in Austin, Texas who understands both federal and state-specific tax laws.

Why Entity Choice Matters Beyond Taxes

Still on the fence? Here’s what your business structure influences:

• Liability Exposure – Do you want your personal assets protected if something goes wrong?
  
  
• Ease of Scaling – Are you planning to buy more properties? Take on partners?
  
  
• Exit Strategy – Planning to sell? Refinance? Your structure impacts capital gains treatment and step-up in basis rules.
  
  
• Legacy and Estate Planning – Holding properties in a properly structured LLC can simplify your estate strategy and transition wealth efficiently.
  
  

Your structure is your foundation. And the right one makes everything else easier, from filing taxes to raising capital to leaving a legacy.

What You Get with Insogna CPA

• Flat-rate pricing—no surprise fees or hidden costs
  
  
• Year-round access to a licensed CPA, tax advisor, or tax preparer near you
  
  
• Deep expertise in real estate, multi-entity structuring, and franchise tax compliance
  
  
• Customized strategies aligned with your income profile and growth plans
  
  
• Seamless support for tax preparation services, bookkeeping, and advisory
  
  

Whether you’re searching for a tax accountant near you, a strategic Austin, TX accountant, or a certified CPA near you, we’re here to help you build the right plan...

If you’re a high-earning professional, taxes aren’t just a once-a-year headache—they’re a game you need to win. You work too hard to let the IRS take more than they should. Yet, so many professionals unknowingly leave money on the table, thinking they’re “doing it right” until a surprise tax bill (or worse, an audit) says otherwise.

Here’s the thing: smart tax planning isn’t just about filing on time. It’s about playing offense, making sure your money works for you, and leveraging every legal tax-saving strategy possible. That’s where a CPA in Austin, Texas comes in.

Let’s break down five costly tax mistakes and how to fix them before they eat into your bottom line.

1. You’re Not Structuring Your Real Estate Investments Right

• Why It’s a Problem: Owning rental properties? Awesome. Holding them in your personal name? Not so awesome. Doing this can expose you to higher taxes, liability risks, and missed deductions.
• How to Fix It: A small business CPA Austin can help you structure your properties under the right entity (LLC, S-Corp, or trust) to protect your assets and maximize tax savings.

2. You’re Relying Too Much on Basic Passive Income Deductions

• Why It’s a Problem: Yes, passive income is great (rental properties, dividends, etc.), but if you’re just taking standard deductions, you’re barely scratching the surface of what you could be saving.
• How to Fix It: A tax advisor in Austin can help you leverage advanced strategies like real estate depreciation, cost segregation, and tax-deferred investments to seriously cut your tax bill.

3. You’re Missing Out on High-Level Tax Mitigation Strategies

• Why It’s a Problem: If maxing out your 401(k) is the only strategy you’re using, you’re missing out on huge tax-saving opportunities.
• How to Fix It: A CPA firms Austin, Texas expert can help you explore tax-savvy strategies like 1031 exchanges, donor-advised funds, defined benefit plans, and tax-loss harvesting so you’re not just saving, but strategically keeping more of your money.

4. You’re Investing Without Thinking About Taxes First

• Why It’s a Problem: Short-term gains? High-yield accounts? Great—until tax season hits and you realize how much you’re handing over to the IRS. Not all investments are created equal in the eyes of tax law.
• How to Fix It: A CPA in Austin, Texas can help you restructure your portfolio with tax-efficient investments, like municipal bonds, Roth accounts, and tax-deferred real estate strategies. Less tax = more wealth-building.

5. You’re Not Working with a CPA Who Understands Multi-State Taxes

• Why It’s a Problem: If you’re earning across multiple states (through remote work, real estate, or investments), each state has its own tax rules. File incorrectly, and you could be overpaying or setting yourself up for an audit.
• How to Fix It: An experienced Austin tax accountant will make sure you only pay what’s required—no more, no less—keeping your tax bill legally as low as possible.

Stop Giving the IRS More Than They Deserve: Let’s Build Your Tax Strategy

You work hard for your money, so why let outdated tax strategies chip away at it? At Insogna CPA, we help high-earning professionals optimize tax strategies, minimize liabilities, and keep more of what they earn.

Whether you need expert Austin accounting services, guidance from an Austin small business accountant, or a CPA in Austin Texas who actually understands high-net-worth tax strategies, we’ve got your back...

📞 Let’s talk. Book a tax strategy consultation today and start keeping more of your hard-earned money!

Let’s be honest: taxes probably weren’t the reason you started your business. But ignoring them? That’s a surefire way to drain your bank account, stress you out, and possibly get a not-so-friendly letter from the IRS.

The good news? Avoiding tax mistakes doesn’t require a finance degree or a crash course in IRS regulations. You just need a solid plan and maybe a CPA in Austin, Texas who actually gets small businesses (hint: that’s us).

Here are the top five tax mistakes small business owners make and how to avoid them like a boss.

1. Mixing Business & Personal Expenses (A.K.A. “The Audit Magnet”)

• Why It’s a Problem: Using your personal bank account for business transactions makes bookkeeping a nightmare, muddles deductions, and waves a giant red flag for the IRS.
• How to Avoid It: Open a separate business bank account and credit card—trust us, future you will thank you. A small business CPA Austin can help you clean up any financial mess and set up a proper system.

2. Forgetting to Track Startup Costs (AKA: Leaving Free Money on the Table)

• Why It’s a Problem: Every dollar you spend before launching—think branding, website development, equipment—could be a tax deduction. But if you don’t track it? You’re just giving the IRS extra cash.
• How to Avoid It: Keep detailed records from day one. An Austin tax accountant will ensure you claim every startup expense possible, lowering your tax bill.

3. Filing the Wrong Tax Forms (Oops, That’s Not the Right One)

• Why It’s a Problem: Sole proprietors, LLCs, and S-Corps all have different filing requirements. Using the wrong forms—like mixing up a Schedule C with Form 1065—could mean penalties or missing out on major tax benefits.
• How to Avoid It: A tax advisor in Austin will make sure you’re using the right tax structure for your business and filing everything correctly.

4. Skipping Quarterly Estimated Tax Payments (And Paying for It Later)

• Why It’s a Problem: Unlike a 9-to-5 job, there’s no employer withholding your taxes. If you’re not making estimated payments, you’ll owe a lump sum at year-end plus penalties.
• How to Avoid It: A CPA in Austin, Texas can calculate your estimated taxes and set up a schedule so you’re not hit with a surprise bill.

5. Overpaying (or Underpaying) Self-Employment Taxes (Because Guesswork Isn’t a Strategy)

• Why It’s a Problem: Many business owners either overpay (ouch) or underpay (hello, IRS penalties). Getting it wrong means either giving up cash unnecessarily or owing more than you expected.
• How to Avoid It: A CPA firms Austin Texas expert will fine-tune your tax strategy so you’re paying exactly what you should—no more, no less.

Let’s Keep More of Your Hard-Earned Money Where It Belongs—With YOU

Why stress over taxes when you can have a CPA who handles them for you? At Insogna CPA, we make sure small business owners like you avoid costly mistakes, maximize deductions, and stay stress-free come tax season.

Whether you need expert Austin accounting services, a proactive Austin small business accountant, or a tax-saving strategy from one of the top CPA firms in Austin Texas, we’ve got your back..

Book a free consultation today—let’s make tax season a breeze!