Orange Coast Tax

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Orange Coast Tax No annoying tax professional lingo. Just straight, authoritative and friendly advice. Visit us: www.orangecoasttax.com Give us a call: (714) 862-1833

Orange Coast Tax is a tax preparation firm founded by Sergio Melendez, who has 18+ years of experience & Jeff Pachuilo who has 25+ years of experience with tax work. Our team takes pride in our customer service skills and makes it our top priority to communicate clearly and efficiently. We treat our clients like family, and want to help take the stress out of tax season for you. Here at Orange Coast Tax we are ready to help you with all of your tax needs. So let us know how we can help you!

“S Corporations save taxes” is only part of the story.The real question is whether an S Corporation can save your busine...
10/16/2026

“S Corporations save taxes” is only part of the story.

The real question is whether an S Corporation can save your business enough in taxes to justify the additional responsibilities.

An S Corporation owner who works in the business generally needs to receive reasonable compensation through payroll before taking non-wage distributions. You also need to account for payroll costs, tax filings, bookkeeping, state requirements, and the annual S Corporation return.

That is why Form 2553 should not be the first step.

Start by comparing how your business is taxed now with what the numbers could look like under S Corporation taxation.

Orange Coast Tax can run that comparison, explain the tax impact in plain English, and help you make the election and stay compliant if an S Corporation makes sense for your business.

An S Corporation tax election can be valuable for the right business, but simply having an LLC does not give you S Corpo...
10/15/2026

An S Corporation tax election can be valuable for the right business, but simply having an LLC does not give you S Corporation tax treatment.

Form 2553 is how an eligible business elects S Corporation status for federal tax purposes. Timing matters because the IRS has specific filing deadlines.

But filing the form is only one part of the tax decision.

Before making the election, look at your business profit, reasonable salary, payroll costs, state taxes, and additional tax filing requirements. The potential savings should be enough to justify the added compliance.

Already missed the Form 2553 deadline? Do not automatically assume you have to wait another year. The IRS provides late-election relief in certain situations.

Orange Coast Tax can review your business and tax situation, determine whether S Corporation taxation makes sense, and help you handle the election correctly.

A single-member LLC may feel simple because there is only one owner, but California adds tax requirements that are easy ...
10/14/2026

A single-member LLC may feel simple because there is only one owner, but California adds tax requirements that are easy to overlook.

The $800 annual LLC tax is one of them.

For many LLCs subject to California’s rules, the annual tax applies even when the business has little income or operates at a loss. Depending on the LLC’s activity, Form 568 and an additional LLC fee may also need to be considered.

This is why “I didn’t make any money” should not automatically become “I don’t have anything to file.”

If you already own a California LLC, check three things each year: what needs to be filed, what needs to be paid, and when each item is due.

If you recently formed the LLC, stopped operating, or missed a prior filing, the rules can be different depending on your circumstances. Addressing the issue early can help prevent penalties, interest, and notices from becoming a bigger problem.

Not sure whether your single-member LLC is fully compliant?

Orange Coast Tax can review your LLC’s tax history, determine what California requires, and help you take care of missing or upcoming filings.

Social Security taxes can be confusing because there is no simple rule that says every retiree pays tax on the same perc...
10/13/2026

Social Security taxes can be confusing because there is no simple rule that says every retiree pays tax on the same percentage of their benefits.

Your other income matters.

The IRS uses “combined income” to help determine whether your Social Security benefits are taxable. Generally, that calculation includes your adjusted gross income, tax-exempt interest, and half of your Social Security benefits.

If your combined income exceeds certain thresholds, a portion of your benefits may be included in taxable income. For some taxpayers, as much as 85% of their Social Security benefits can be taxable.
The important distinction: 85% taxable does not mean an 85% tax rate. It means up to 85% of the benefits may be included when calculating taxable income.

For retirees with multiple income sources, planning matters. A retirement account withdrawal or other additional income can affect more than one part of the return.

Orange Coast Tax can review the full picture, explain what is taxable in plain English, and help you prepare for the tax bill instead of discovering it after the year is over.
Retirement income should support your plans, not create an avoidable tax surprise.

Need $30,000 from your traditional IRA this year?Before withdrawing it, check what that additional income could do to th...
10/12/2026

Need $30,000 from your traditional IRA this year?

Before withdrawing it, check what that additional income could do to the rest of your tax return.

Traditional retirement account withdrawals are generally taxable income. Depending on your overall income, that withdrawal can also affect how much of your Social Security benefits are included in taxable income.

That is why retirement tax planning should not look at each income source separately.
Social Security, pensions, IRA and 401(k) withdrawals, investment income, tax-exempt interest, and wages can interact on the same return.

The practical approach is to estimate the tax impact before taking a large discretionary withdrawal when possible. You may have options around timing or the amount withdrawn depending on your financial needs and applicable tax rules.

Orange Coast Tax can review your retirement income and help you understand the tax consequences before filing season.

A common retirement tax surprise happens when someone assumes Social Security benefits are completely tax-free.Whether y...
10/12/2026

A common retirement tax surprise happens when someone assumes Social Security benefits are completely tax-free.

Whether your benefits are taxable depends on more than the amount of Social Security you receive. The IRS uses a calculation based on your combined income, which generally includes your adjusted gross income, tax-exempt interest, and half of your Social Security benefits.

If your income crosses certain thresholds, part of your Social Security can become taxable. Depending on your situation, up to 85% of the benefit can be included in taxable income. That does not mean the IRS takes an 85% tax rate from your Social Security.
This is why withdrawals from a traditional IRA or 401(k), investment income, wages, and other income should be considered together.

Before making a large retirement withdrawal, look at the full tax picture. A little planning can help you understand the tax cost before the decision is made.

Orange Coast Tax helps retirees review multiple sources of income and prepare returns correctly so tax surprises do not show up at filing time.

An S Corporation tax election is not just paperwork. It changes how your business handles several important tax and comp...
10/11/2026

An S Corporation tax election is not just paperwork. It changes how your business handles several important tax and compliance responsibilities.

Before filing Form 2553, start with the numbers.

How much profit is the business generating? What would be a reasonable salary for the work you perform? What will payroll cost? Are there state-level taxes or fees to consider? And after those expenses, is there still a meaningful tax benefit?

If the answer supports an S Corporation election, the next step is getting Form 2553 filed correctly and on time.

If you already missed the deadline, there may still be a tax solution. The IRS allows late-election relief in certain circumstances, so a missed deadline does not always mean the election is lost.

And once the election is effective, the tax work continues. Payroll, reasonable compensation, distributions, bookkeeping, and the S Corporation tax return all need to stay aligned.

Orange Coast Tax helps business owners evaluate the tax benefit first, make the election correctly, and handle the ongoing tax requirements afterward.

The goal is not simply to become an S Corporation. The goal is to choose the tax structure that makes sense for your business.

Seeing a loss on your rental property does not automatically mean you can deduct the entire amount against your salary, ...
10/10/2026

Seeing a loss on your rental property does not automatically mean you can deduct the entire amount against your salary, business income, or other nonpassive income.

That surprises many property owners.

The passive activity rules determine when certain rental losses can be used. Some owners may qualify for special treatment, while others may have losses suspended and carried forward.

The mistake is treating a suspended deduction as if it has disappeared.

If you own rental property, your tax records should clearly show your depreciation history, prior passive losses, and any amounts being carried forward. This becomes especially important when your income changes, you add another property, or you plan to sell.

Orange Coast Tax can review your rental tax history and help identify deductions and carryforwards that may have been overlooked.

Rental property taxes should be planned across years, not treated as a one-year calculation.

One of the problems we see with rental property returns is not necessarily a missing expense. It is a deduction that was...
10/09/2026

One of the problems we see with rental property returns is not necessarily a missing expense. It is a deduction that was properly suspended in an earlier year but was not tracked correctly afterward.

That can matter.

If passive activity rules prevent you from deducting the full rental loss today, the unused amount generally carries forward. Those accumulated losses may become valuable later when you generate passive income or when the property is sold in a qualifying taxable disposition.

Before making a major decision about a rental, review the tax history of the property, including depreciation and suspended passive losses. The tax result involves more than simply comparing the purchase price with the selling price.

Orange Coast Tax helps rental property owners understand what their returns are carrying forward and how those amounts may affect future tax decisions.

A rental property can lose money on paper without automatically giving you the same amount as a current tax deduction.Th...
10/09/2026

A rental property can lose money on paper without automatically giving you the same amount as a current tax deduction.

This often happens after depreciation, repairs, interest, and other allowable expenses push the property into a tax loss.

The important question is whether you are allowed to use that loss this year.

Passive activity rules can limit the deduction based on factors such as your participation in the rental, your income, and whether you have other passive income. Losses that are suspended can generally carry forward and may become deductible in a later year when the rules allow.

That is why rental owners should keep accurate records of unused passive losses from year to year. They may still have tax value.

Orange Coast Tax can review your rental activity, prior returns, and suspended losses to make sure deductions are being handled correctly.

Address

28202 Cabot Road Suite 267
Laguna Niguel, CA
92677

Opening Hours

Monday 8am - 6:30pm
Tuesday 8am - 6:30pm
Wednesday 8am - 6:30pm
Thursday 8am - 6:30pm
Friday 8am - 6:30pm
Saturday 9am - 4pm

Telephone

+17148621833

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