Category: Potpourri of Tax Topics

How Do Sole Proprietors Prove Usage of Funds for PPP Loan Forgiveness?

UDPATE: Not so fast on this. It looks like loan forgiveness for a sole proprietor is based on taking 2019 net income, dividing by 52 and multiplying by 8. Read this article in Forbes: https://www.forbes.com/sites/anthonynitti/2020/04/15/ten-things-we-need-to-know-about-paycheck-protection-program-loan-forgiveness/#27dbd8953291 And also see the AICPA frequently asked questions on this subject. https://www.aicpa.org/interestareas/privatecompaniespracticesection/qualityservicesdelivery/sba-paycheck-protection-program-resources-for-cpas/sba-payroll-protection-program-faqs.html Because of this new guidance, I am striking […]

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The Conundrum of Small Non-Profits and the Small Accounting Professional

One of the topics that comes up often when talking to clients and other accountants is, the accounting service problem that small non-profits are facing. They need help from tax and accounting professionals. They can’t (or don’t want to…) pay full price. So they seek out affordable accounting pros. Most of the time these accounting […]

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Self-Employment Tax Calculation When Income is Over the Social Security Wage Base

How does the calculation for self-employment tax work when self-employment income is over the Social Security Wage Base? Let’s take a look. Basic Calculation When self-employment income is below the Social Security Wage Base, the calculation is straightforward. Let’s say your self-employment income is $50,000, well below the Social Security Wage Base. You take $50,000 […]

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