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!

Do you qualify for the home office deduction? A properly documented home office does not raise your audit risk.Here is w...
10/27/2026

Do you qualify for the home office deduction? A properly documented home office does not raise your audit risk.

Here is who qualifies and how to calculate it:

• Eligible: self-employed people, contractors, and single-member LLCs filing Schedule C
• Not eligible: W-2 employees, even full-time remote, since 2018
• The space must be used exclusively and regularly for business
• Simplified method: $5 per square foot up to 300 square feet, for a $1,500 maximum
• Regular method: actual expenses times your business-use percentage on Form 8829, with no cap
• Example: a 200 square foot office could be $1,000 simplified vs. $6,100 regular
• Regular-method depreciation is recaptured when you sell

Run both methods every year, since you can switch and the better one can change.

Comment "OFFICE" and we will reach out to you.

Business owners: most tax-saving moves must happen by December 31. By April, the year is locked.Here is your year-end ch...
10/24/2026

Business owners: most tax-saving moves must happen by December 31. By April, the year is locked.

Here is your year-end checklist:

• Equipment must be placed in service by December 31, not just ordered
• Section 179 lets you elect up to $2,560,000 for 2026, or you can use 100% bonus depreciation
• S corp owners: true up your salary to actual profit before final payroll
• The 2026 401(k) employee deferral limit is $24,500, plus catch-ups at age 50 and over
• Paying Q4 state taxes before December 31 may make them deductible this year
• Get proper documentation for any charitable gift over $250
• Review worker classification before you issue 1099s

Start in October or November. Year-end planning needs weeks of runway, not days.

Comment "YEAREND" and we will reach out to you.

Selling your home? Section 121 lets you exclude up to $250K of gain, or $500K if married filing jointly, with no need to...
10/22/2026

Selling your home? Section 121 lets you exclude up to $250K of gain, or $500K if married filing jointly, with no need to buy another home.

Here are the core rules and the traps:

• Ownership test: own the home at least 2 of the 5 years before the sale
• Use test: live in it as your main home for 2 of those 5 years, 730 days total
• The exclusion is generally usable only once every two years
• A job move at 12 months may still qualify a single filer for a partial exclusion of up to $125K
• Rental use after 2009 reduces the exclusion proportionally
• Depreciation recapture is never excluded and is taxed at up to 25%
• Got a Form 1099-S? Report the sale even if all the gain is excluded

Section 121 is huge, but prior rental use and depreciation can change what you owe.

Comment "HOMESALE" and we will reach out to you.

Own a California LLC? You have two obligations, two deadlines, and two forms. Miss either one and penalties kick in.Here...
10/20/2026

Own a California LLC? You have two obligations, two deadlines, and two forms. Miss either one and penalties kick in.

Here is how California's LLC charges work:

• Form 3522: the $800 annual tax is due April 15, and it is owed even with zero profit
• Form 3536: the LLC fee estimate is due June 15 once California gross receipts hit $250K
• Form 568: the annual return is due April 15 and is filed separately from Form 3522
• The fee is based on gross receipts, not net, so break-even years can still owe
• The top LLC fee is $11,790, owed at $5M or more in California gross receipts
• Ongoing non-compliance can lead to suspension of the LLC

Your LLC owes California even in a loss year, so put April 15 and June 15 on your calendar.

Comment "FRANCHISE" and we will reach out to 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.

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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