Category: Small Business Tax and Accounting

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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PPP Loans and Basis Increases: When Does it Happen?

The latest stimulus bill gives businesses the ability to deduct expenses paid with forgiven PPP proceeds. This is good news, but is not what this post is about. The stimulus bill says deductions are allowed and “no basis increase shall be denied.” It’s the “basis” piece I want to address here. This seems like 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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