CPA for High-Net-Worth Individuals and Families in Los Angeles
MangoBooks, a Los Angeles CPA firm, prepares federal and California returns for individuals and families whose income comes from several sources at once: Schedules K-1 from partnerships and S corporations, stock compensation, rental property, sales of shares or real estate, and income earned in more than one state. We also plan the year's estimated payments, which follow different rules once adjusted gross income passes $150,000 and again at $1,000,000. An individual return with K-1s, stock compensation or several states typically costs $2,500–$4,500.
The work is led by Felix Park, CPA, MBA, a licensed California CPA with an MBA from the UCLA Anderson School of Management.
Situations We Handle
K-1 income from several entities. A partnership or S corporation gives each owner a Schedule K-1 with that owner's share of income, deductions and credits. We carry each K-1 into Schedule E and the federal and California returns, and when we also prepare the entity's return, both come from the same year-end figures. See Business Tax Preparation.
Stock compensation and sales of shares. RSUs, stock options and employee stock purchase plans create income at vesting, exercise and sale, and flat withholding of 22 percent federal and 10.23 percent California can fall short of the tax due. Exercising an incentive stock option creates no regular income tax, but the spread is an adjustment for the alternative minimum tax, federal and California, unless the shares are sold in the same year. We match the brokerage forms to the income on Form W-2 and correct the cost basis on Form 8949. See Executives with Stock Compensation.
A rental portfolio or a sale. Each property is reported in its own column of Schedule E with its own depreciation schedule. When a rental is sold, the part of the gain that comes from depreciation on the building is taxed federally at a maximum 25 percent, escrow generally withholds 3 1/3 percent of the price for California, and California taxes the whole gain as ordinary income. We estimate the tax before the sale. See Rental Property Owners.
A high-income year. A bonus, a large vesting or a sale can push the year's income past $1,000,000. Federal estimated payments then avoid a penalty only if they cover 90 percent of this year's tax or 110 percent of last year's, the figure that applies once prior-year adjusted gross income is above $150,000 ($75,000 if married filing separately). California requires estimates based on 90 percent of the current year's tax once California AGI reaches $1,000,000 ($500,000 if married filing separately). We project the year's tax and set each payment, due April 15, June 15, September 15 and January 15. See Tax Planning.
Moving into or out of California. A part-year resident files Form 540NR and is taxed on all income received while a California resident and on California-source income while a nonresident. We prepare the federal return, the California return and the return for the other state together, and plan the estimated payments for the year of the move.
California Specifics
- Top rate. For 2025, the 12.3 percent bracket begins at $742,953 of taxable income for single filers, $1,485,906 for married couples filing jointly and $1,010,417 for heads of household.
- Behavioral Health Services Tax. California adds 1 percent on taxable income above $1,000,000.
- Capital gains. California has no lower rate for capital gains and taxes them as ordinary income.
- Estimates at high incomes. When prior-year California AGI is above $150,000 ($75,000 if married filing separately), estimated payments are based on the lesser of 90 percent of the current year's tax or 110 percent of the prior year's; when the current year's California AGI reaches $1,000,000 ($500,000 if married filing separately), on 90 percent of the current year's tax. California asks for 30, 40, 0 and 30 percent of the year's estimate on the four due dates.
Federal Thresholds
- Top bracket for 2026. The 37 percent rate applies to taxable income over $640,600 for single filers and $768,700 for married couples filing jointly; the standard deduction is $16,100 and $32,200.
- Alternative minimum tax for 2026. The exemption is $90,100 for unmarried individuals, phasing out from $500,000 of alternative minimum taxable income, and $140,200 for married couples filing jointly, phasing out from $1,000,000.
- State and local tax deduction for 2025. Capped at $40,000 ($20,000 if married filing separately) and reduced once modified adjusted gross income exceeds $500,000 ($250,000), though not below $10,000 ($5,000).
- Net investment income tax and Additional Medicare Tax. 3.8 percent on net investment income when modified adjusted gross income is above $250,000 (joint filers), $125,000 (married filing separately) or $200,000 (others), and 0.9 percent on wages and self-employment income above the same amounts.
Services Involved
- Individual Tax Preparation: Form 1040 with Form 540 or 540NR, Schedules D and E, Form 8949 prepared from the employer's Forms 3921 and 3922, and returns for other states.
- Tax Planning: the year's projection and estimated payments, and planning before a sale, a move or a vesting.
- Business Tax Preparation: the returns of the partnerships, S corporations and LLCs you own, with each owner's K-1.
- Rental Property Owners and Executives with Stock Compensation: the detailed pages for those parts of the return.
Where We Work
We serve clients throughout Los Angeles, including the San Fernando Valley communities around our office in Woodland Hills (Encino, Sherman Oaks, Tarzana, Calabasas and Burbank) and the Conejo Valley (Thousand Oaks, Westlake Village and Agoura Hills). Meetings are scheduled in advance, and documents are exchanged electronically. See CPA in the San Fernando Valley and CPA for the Conejo Valley.
Fees
| Return | Typical range |
|---|---|
| Individual return with K-1s, stock compensation or several states | $2,500–$4,500 |
| Individual return with a business or rental properties | $1,100–$1,800 |
| Business tax return (1120-S, 1065 or 1120 with the California return) | $2,000–$3,500 per year |
Tax planning fees are quoted after a consultation. 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
Why are estimated payments based on more than 100 percent of last year's tax?
When last year's adjusted gross income was over $150,000 ($75,000 if married filing separately), federal estimated payments avoid a penalty only if they cover 110 percent of last year's tax or 90 percent of this year's. California applies the same 110 percent figure above $150,000 of prior-year California AGI, and once the current year's California AGI reaches $1,000,000 ($500,000 if married filing separately) the estimates must be based on 90 percent of the current year's tax. See Tax Planning.
What does California add above $1,000,000 of taxable income?
The top California rate is 12.3 percent, and the Behavioral Health Services Tax adds 1 percent on taxable income above $1,000,000. California has no lower rate for capital gains, so gains on sold shares or property are taxed at the same rates as other income.
Who pays the 3.8 percent net investment income tax?
Individuals whose modified adjusted gross income is above $250,000 (married filing jointly), $125,000 (married filing separately) or $200,000 (single or head of household) pay 3.8 percent on the lesser of their net investment income or the amount above the threshold. Net investment income includes interest, dividends, capital gains, and rental and royalty income.
What does an individual return with K-1s, stock compensation or several states cost?
Typically $2,500–$4,500. The fee depends on the number of K-1s, the types of stock awards and any shares sold, and the number of state returns, and it is set out in a written engagement letter before work begins. See the Fee Guide.
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.