Individual Tax Preparation in Los Angeles
MangoBooks prepares federal and California individual income tax returns for people in Los Angeles. We work with W-2 employees, owners of small businesses, rental property owners, and people whose returns include K-1s, stock compensation or income from more than one state.
The work is led by Felix Park, CPA, MBA, a licensed California CPA. For business owners, we can prepare the personal and company returns together.
What's Included
- The federal return, Form 1040, and the California resident return, Form 540.
- California Form 540NR for part-year residents and nonresidents, including the year you move into or out of the state.
- Schedule C for a business you own as a sole proprietor.
- Schedule E for rental real estate and for income from partnerships and S corporations.
- Form 8949 and Schedule D for sales of stock, including cost basis adjustments when the Form 1099-B basis needs correcting.
- Stock plan reporting from Form 3921 (incentive stock option exercises) and Form 3922 (employee stock purchase plan shares).
- Returns for other states when you have income there.
- Electronic filing with the IRS and the Franchise Tax Board, and a copy of the filed returns for your records.
Who This Is For
- Owners of small businesses whose personal return includes a K-1 or a Schedule C. See Small Businesses and Their Owners.
- Owners of one or more rental properties, including the year a property is bought or sold. See Rental Property Owners.
- Employees and executives with RSUs, stock options or employee stock purchase plans. See Executives with Stock Compensation.
- Individuals with W-2 income and a California return.
How It Works
- Consultation. We talk by phone or video about your income and what changed during the year.
- Engagement letter. We send a written engagement letter that sets out the returns we will prepare and the fee before work begins.
- Document exchange. You send your documents electronically, and we follow up with any questions.
- Review, e-signature and filing. We go through the finished returns with you. You sign the IRS and California e-file authorizations, Form 8879 and FTB 8879, electronically, and we file both returns.
What to Bring
- Last year's federal and California returns, if another preparer filed them.
- Forms W-2 and 1099 and any other information returns you received.
- Schedules K-1 from any partnership or S corporation you own part of.
- Brokerage statements and equity plan statements for RSUs, options or ESPP shares.
- For rental properties: rents received, expenses, mortgage interest and property tax statements, and closing statements for any purchase or sale.
- Records of estimated tax payments made during the year.
The full list is in our New Client Checklist.
Key Dates
- April 15. Federal and California individual returns, and any balance owed, are due for the prior year.
- October 15. The extended filing deadline. Federal Form 4868 extends the time to file, and California grants a six-month extension automatically; payment is still due April 15.
- Federal estimated payments are due April 15, June 15, September 15 and January 15.
- California estimated payments are 30 percent by April 15, 40 percent by June 15 and 30 percent by January 15, with no payment due in September.
When a due date falls on a Saturday, Sunday or legal holiday, it moves to the next business day.
Fees
| Return | Typical range |
|---|---|
| Individual return, W-2 and California | $650–$900 |
| Individual return with a business or rental properties | $1,100–$1,800 |
| Individual return with K-1s, stock compensation or several states | $2,500–$4,500 |
Factors affecting fees: the number of schedules and forms, how many rental properties or businesses are on the return, the number of K-1s and states, and stock sales that need cost basis corrections. Fees depend on the scope of work and are set out in a written engagement letter before work begins. See the Fee Guide.
Frequently Asked Questions
Can you prepare a return for the year of a move into or out of California?
Yes. A part-year resident files California Form 540NR and pays California tax on all income received while a resident and on California-source income received while a nonresident. We also prepare the return for the other state when one is required.
How is stock compensation taxed in California?
California does not have a lower rate for capital gains, so gains on sold shares are taxed as ordinary income. When an employer uses the flat-rate method, California withholding on bonuses and stock options is 10.23 percent, and federal withholding on supplemental wages is 22 percent, or 37 percent on supplemental wages above $1 million in a year. When flat withholding is below your actual rate, the difference is due with the return or through estimated payments.
Can you prepare the personal return together with an S corporation or partnership return?
Yes. The business return and the owner's personal return can be prepared in the same engagement, so the K-1 figures carry directly into the personal return.
What if the return cannot be filed by April 15?
We file an extension. The federal extension on Form 4868 gives you until October 15 to file, and California grants an automatic extension to the same date. An extension covers filing only; any tax owed is still due in April.
Schedule a Consultation
Call (213) 255-4665 or send us a short message about your situation.
Please do not include Social Security numbers, bank account numbers or tax documents in the form.