Category: Small Business Tax and Accounting

ERC and Supply Chain Disruptions

On Friday, July 21, the IRS release a Chief Council Memorandum on the subject of whether or not a business qualifies for the employee retention credit (ERC) based on supply chain disruptions. Here is a link to the memorandum: https://www.irs.gov/pub/lanoa/am-2023-005.pdf The short answer is, no, a supply chain disruption does not qualify a business for […]

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Converting to an S-Corp — The QBI Deduction Complicates the Choice

The decision to be an S-corporation might be a bad thing for the overall tax picture of a small business right now, in light of the qualified business income deduction. Like everything with taxes, “it depends.” I am not a huge fan of S-corps, and quite frankly there’s nothing wrong with being a sole proprietor. […]

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Selling Your Home When You’ve Taken Depreciation Deductions

Taxpayers who sell their home don’t need to pay taxes on the sale — “in general.” “In general” is famous last words of the tax code. What if you’ve claimed a home-office deduction relating to your house? In that situation, it’s likely that some of your sale IS taxable. Let’s discuss. Review Let’s use an […]

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Sole Proprietors, PPP Loans and Home Office Expenses

The August 27th Interim Final Rules seem to allow a sole proprietor to include home-office expenses toward loan forgiveness. This is in direct contradiction to the April 14th IFRs which say home-based expenses DON’T count. Here is what the latest IFR says, regarding home-based businesses: “(T)he borrower may include only the share of covered expenses […]

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