Category: Small Business Tax and Accounting

What’s Going on with Form 1099-K?

In November, the IRS announced this it was pushing back the changes to Form 1099-K reporting rules again. Let’s examine. What is Form 1099-K? Form 1099-K is issued by third-party settlement organizations and third-party network transactions for business transactions. A third-party settlement organization is sometimes called a merchant processor. Whatever you call them, they are […]

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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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