BUILDING RELATIONSHIPS | DELIVERING SUCCESS ®

Leadership

Leadership Experience.

Posted by on Aug 12, 2001

The partners and principals of Hertzbach are diverse in their professional backgrounds, experience, and achievements. Each partner/principal has made a unique contribution to the growth and success of the firm. Many of our partners and principals started their careers with our firm.

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Strategy

Service Strategies.

Posted by on Aug 12, 2001

Our team of over 160 professionals is diverse in their experience and achievements, concentrating in many practice service areas, including accounting and auditing, taxation, consulting, and specialized industries. Our depth of expertise and reputation make us the choice for businesses and individuals.

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Expertise

Industry Expertise.

Posted by on Aug 12, 2001

Hertzbach & Co. provides services and consulting to a wide range of industries. We understand the unique practices of these industries. Our professional team of CPAs, working with other professionals and support staff, provide the specialized resources needed to succeed in all aspects of business.

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Beliefs

What We Believe.

Posted by on Aug 12, 2001

As a certified public accounting and consulting practice, we believe that every client, without exception, has the right to the highest level of expertise and advice, a thorough understanding of their financial position and a commitment by those engaged and entrusted to guide them to business success.

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Recent Posts

Extension for MD Fourth Quarter Withholding

Extension for MD Fourth Quarter Withholding

Feb 2, 2016

Comptroller Peter Franchot announced on January 29th that the deadline for the Maryland quarterly withholding for the fourth quarter of 2015, has been extended to February 12th in an effort to alleviate pressure from small businesses that experience setbacks in their operations due to the blizzard. Please note this extension is applicable to Maryland filings only; Federal returns were still due at the end of January. Please call your Hertzbach Tax Advisor with any questions or concerns at 410-363-3200 or 800-899-3633. We look forward to speaking with...

IRS Issues Update on Identity Theft PINs

IRS Issues Update on Identity Theft PINs

Jan 14, 2016

The IRS has recently started to mail taxpayers who are victims of identity theft their Identity Theft PINs for use when filing their 2015 tax returns.  The IRS posted an alert on their website that states the CP 01A Notice (dated January 4, 2016) mailed to taxpayers with their PINs provides the wrong tax year. The Notice indicates the IP PIN is for the 2014 tax year.  The IRS has acknowledged the error and has indicated this IP PIN should be used when filing the 2015 return. For more information including answers to some frequently asked questions, please see the link to the IRS alert below....

Covering Children Tuition Costs with Capital Gains

Covering Children Tuition Costs with Capital Gains

Dec 21, 2015

Many parents may find themselves in a position where they must sell investments to pay for a child’s college tuition. These investments could have appreciated over the years, generating capital gains tax in the year that the investments are sold. However, if these funds are shifted to a child attending college, there is a tax strategy that can significantly lower or possibly eliminate any tax due. The Strategy: Prior to the child attending college, parents would gift appreciated investments to the child to hold allowing the investments to further grow. Once the child starts attending college, he or she would then sell the investments and use the money to pay for tuition themselves. This would allow the child to pay for tuition and open doors on their personal income tax return. First, the child is now providing over 50% of their own support allowing them to claim themselves as a dependent. By doing this, it allows them to claim a personal exemption on their own tax return reducing taxable income (capital gain income from investments). Second, the child benefits from the full standard deduction further reducing taxable income. If a child were claimed as a dependent on their parents return, the standard deduction has the possibility of being limited. By a child being able to claim themselves, it ensures the full standard deduction is allowed. Lastly and most beneficial, the child is allowed to claim the American Opportunity Tax Credit allowing up to $2,500 of income tax to be removed. Looking at the possibilities, a child could generate up to $28,000 in long-term capital gain income with the possibility of wiping out any income tax due. Using this strategy allows the parents to sell appreciated investments with no tax liability which may have needed to be sold anyway to pay for their child’s tuition. Please call your Hertzbach Tax Advisor with any questions or concerns at 800-899-3633. We look forward to speaking with...