Company president is assessed a penalty. If an employer withholds taxes from employees but doesn’t pay them over to the IRS, the employer may face a harsh penalty. The Trust Fund Recovery Penalty (TFRP) equals 100% of the unpaid tax and can be… Read more »
Read Full Newsletter »Do you own a vacation home that’s classified as a rental property for tax purposes? Rental property owners may be tempted to use their rental properties for their personal “staycations” or as remote office locations during the COVID-19 pandemic. But this… Read more »
Read Full Newsletter »Virtual currencies, also known as cryptocurrencies, have gone mainstream. For example, you can use Bitcoin to buy a Tesla, or you can use a Bitcoin wallet on your smartphone to make everyday purchases. But beware: Using virtual currency has federal… Read more »
Read Full Newsletter »Are you thinking about buying a plug-in electric car or truck? Fortunately, a tax credit is available for qualified vehicles. The base amount of the credit is $2,500 per vehicle. The vehicle must be new and have battery capacity of at… Read more »
Read Full Newsletter »What’s a “restaurant” for tax deduction purposes? A recent tax law provides a 100% business deduction (up from 50%) for food and beverage expenses in 2021 and 2022 as long as they’re “provided by a restaurant.” The IRS has now defined… Read more »
Read Full Newsletter »Budget deficit increase, Corporate Minimum Tax Rate, Home Office Tax Write-Off
From equipment theft to padded time to cyberattacks, contractors are vulnerable to a variety of fraud schemes. According to the Association of Certified Fraud Examiners, the median loss due to internal fraud is $200,000 for construction companies — significantly higher than… Read more »
Read Full Newsletter »The IRS extends the Tax Day deadline. Individual taxpayers get extra time to file their 2020 tax returns and pay their taxes because of the pandemic. The IRS announced that the federal income tax filing and payment due date has been… Read more »
Read Full Newsletter »American Rescue Plan Act, Deductible Traditional IRA, Tax Deadline Extension, Unemployed Health Insurance
If you’re self-employed as a sole proprietor, partner or limited liability company (LLC) member, COVID-relief legislation passed in 2020 included tax breaks that may affect your 2020 personal federal income tax return. In some cases, the tax savings may be significant…. Read more »
Read Full Newsletter »Credits for Sick Leave and Family Leave, Deferred SE Tax, New 1099 Form for Self-Employed Workers
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021. The new law will provide roughly $1.9 trillion in much-needed financial relief to individuals, businesses, not-for-profit organizations, and state and local governments during the pandemic. Here are… Read more »
Read Full Newsletter »Child Tax Credit, Compensation for Public Companies, EIDL, Employee Rentention Tax Credit, Employer-provided dependent care assistance, Excess Business Losses, Restaurant Revitalization Grants, Student Loan Forgiveness, Unemployment Benefits
It’s full speed ahead for tax season now that the IRS is accepting returns. Here are some quick tips to help speed the process and avoid common errors that could delay a refund, if you’re due one. Bring all required Social… Read more »
Read Full Newsletter »Child Tax Credit, Corporation losses in court over management fees, Dependents, Electric Vehicle Tax Credit, Family Leave Tax Credit
Attempts to claim write-offs for bad debt losses have fueled controversies with the IRS for many years. Unfortunately, bad debt losses are increasingly common during the COVID-19 pandemic. Here’s an overview of the federal income tax treatment of these losses. The… Read more »
Read Full Newsletter »Accrual-basis business taxpayers, Business bad debt losses, Cash-basis business taxpayers, Extended Statute of Limitations, Non-business bad debt losses
The following table provides some important federal tax information for 2021, as compared with 2020. Some of the dollar amounts are unchanged and some changed only slightly due to inflation. Important Tax Figures for 2021 Social Security/ Medicare 2021 2020 Social Security… Read more »
Read Full Newsletter »Annual Gift Exclusion, Business Equipment, Business Meals, Domestic Employees, Driving Deductions, Estate Tax, Individual Retirement Account, Medicare, Qualified Plan Limits, Social Security, Standard Deduction, Transportation Fringe Benefit Exclusion
PPP loans are expanded and extended. Under the new Consolidated Appropriations Act, eligible small businesses can take out first or “second draw” Paycheck Protection Program (PPP) loans. This provision targets smaller and harder-hit businesses with 300 or fewer employees that have… Read more »
Read Full Newsletter »Cents-Per-Mile Deductions, New Form for Independent Contractors, PPP Loans
President Trump signed the Consolidated Appropriations Act (CAA) into law on December 27, 2020. The legislation adds a few new tax breaks for businesses and extends a bevy of other business breaks that were set to expire at the end of… Read more »
Read Full Newsletter »Appropriations Law, Business Deductions, CARES Act Loan Forgiveness, Depreciation for Residential Rental Property, Empowerment zone Breaks, NOL Rules, Tax Credits
The massive COVID-19 relief bill signed by President Trump on December 27, 2020, contains a variety of tax breaks and authorizes direct payments to eligible individuals (see right-hand box). The law is titled the Consolidated Appropriations Act of 2021 (CAA) but… Read more »
Read Full Newsletter »Charitable Gifts, College Tuition Deduction, Educator Expense Deductions, Forgiven Mortgage Debt, New FSA Rules, Tax Credits
Court case looks at where an individual’s tax home was located. Taxpayers who live and work outside the U.S. may be able to exclude foreign-earned income. Generally, to qualify, a taxpayer must have a tax home (his or her regular place… Read more »
Read Full Newsletter »COVID-19 Scams, Individual Tax Home, IRS Scams, Payroll Tax Penalty, Tax Exempt Tool
The CARES Act granted several valuable federal tax breaks for individuals and businesses. But most will expire at the end of 2020 or at the end of tax years that begin in 2020. Here’s a roundup of tax breaks scheduled to… Read more »
Read Full Newsletter »Business Interest Expense, Business Tax Payers, Cares Act, Charitable Donations, Corporate Charitable Gift, COVID-19, Early retirement, NOL, Payroll tax, RMD
Most people aren’t currently exposed to the federal estate tax, thanks to the generous unified federal estate and gift tax exemptions. However, there are still good reasons to review your estate plan and possibly update it to reflect the current federal estate and… Read more »
Read Full Newsletter »2020 Taxes, Beneficiary, Estate Planning, Exempt, Expenses, Gift Tax, Life Insurance, Living Trust, Real Estate Property Tax, Tax Cuts and Jobs Act, TCJA, Trust, Will
It’s time to implement strategies to help reduce your 2020 federal income tax bill and position yourself for future tax savings. Here are some ideas to consider before year end. Current Individual Federal Income Tax Rate Scene Here’s an overview of… Read more »
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