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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 …
Retirement Savers Credit And Prior Retirement Withdrawals
The retirement savers credit is a tax credit available to taxpayers who put money into a retirement account and whose income is below the threshold for qualifying for the credit.
For 2019 returns, the thresholds are: $64,000 for married filing jointly; $48,000 for head of household; …
What Millennial Business Owners Want, And Seem to be Willing to Pay For!
The bookkeeping software company Xero recently released a report, available here, which shows that “millennial” business owners are unhappy with their accountants — 50% are unhappy and are looking to switch to someone else, 33% say they only “receive insights” twice a year …
What to Do When Your Ex Wrongly Claims the Kids
When it comes to divorce and taxes, the IRS cares about who the custodial parent is. Custodial = who has custody of the kids more nights out of the year.
Note: many people say “well we have joint custody.” Or “my divorce decree says blah blah …
My Tax Reform Wish List: Instantaneous Audits
First of all if one were to really dig into ways to reform the tax system in this country, there are MANY things one could come up with. This particular wish of mine is 1) not the most important reform, and 2) not realistic anyway. …
SUTA and the Single-Member LLC
This blog post is specific to Iowa. SUTA = state unemployment tax.
In Iowa, when a 1-person LLC makes an election to be taxed as an S-corporation and pay the owner a salary, the salary is NOT automatically subject to state unemployment tax. Instead, the owner has …
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 …
Are Estimated Tax Payments Required?
A common question people ask is, am I required to make quarterly estimated tax payments? I guess the best answer is: “sort of.” It’s not a matter of you “must,” but there …
Are Estimated Tax Payments Required?
A common question people ask is, am I required to make quarterly estimated tax payments? I guess the best answer is: “sort of.” It’s not a matter of you “must,” but there are penalties for not doing so.
The IRS will assess a penalty against you …
Revisiting W-9s, 1-Person LLCs and EINs
I wanted to revisit the subject of 1-person LLCs and employer identification numbers.
Here are the basics, when a 1-person LLC is taxed as a sole proprietorship:
The IRS says to put the proprietor’s …Revisiting W-9s, 1-Person LLCs and EINs
I wanted to revisit the subject of 1-person LLCs and employer identification numbers.
Here are the basics, when a 1-person LLC is taxed as a sole proprietorship:
The IRS says to put the proprietor’s name and SSN* on the W-9The IRS says to use the proprietor’s SSN* …Retirement Withdrawals, Home Purchases and the 10% Early Withdrawal Penalty
If you take money out of a retirement account to buy a house (for example to make a down payment), you can avoid the 10% early withdrawal penalty … but only on …
Retirement Withdrawals, Home Purchases and the 10% Early Withdrawal Penalty
If you take money out of a retirement account to buy a house (for example to make a down payment), you can avoid the 10% early withdrawal penalty … but only on IRA withdrawals.
The rules on retirement withdrawals are tricky and vary between 401(k) accounts …
Things I Learned About Taxes this Week: September 4, 2020
I have decided to make this a running feature on my blog, to show just how hard taxes are. I am regarded as a “tax expert” and present CPE courses to other …
Things I Learned About Taxes this Week: September 4, 2020
I have decided to make this a running feature on my blog, to show just how hard taxes are. I am regarded as a “tax expert” and present CPE courses to other tax pros almost every day.
Yet I learn new things multiple times a day, …
Making IRA Contributions After the End of the Year: Good or Bad?
I usually advise my clients against making IRA contributions for the prior year after the year has ended.
Let’s back up. What are we even talking about here?
IRA Contributions After Year-EndA …
Making IRA Contributions After the End of the Year: Good or Bad?
I usually advise my clients against making IRA contributions for the prior year after the year has ended.
Let’s back up. What are we even talking about here?
IRA Contributions After Year-EndA taxpayer who qualifies to make a deductible IRA contribution (WARNING: not everyone does qualify!) can …
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 …
Revisiting (Again!) Shareholder Wages and the ERC
See this post from Federal Tax Developments, which I think changes my mind on this subject. https://www.currentfederaltaxdevelopments.com/blog/2021/4/3/tax-advisers-area-51-employee-retention-credit-and-majority-shareholders
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The National Association of Tax Professionals addressed the subject of shareholder wages and the employee retention credit in their weekly news alert last week.
In the “You Make the Call” …
Tilting at Windmills Again, Or, Don’t Clients Have a Responsibility Too?
Here I go again on a writing spree about articles from the “experts” and the complaints of clients about how accountants aren’t doing enough.
The latest comes from a survey from Canopy, published in Accounting Today (link here) which as usual maligns accountants, we’re …
Another ERC Question: Wages Paid or Wages Incurred?
Another employee retention credit has come up. The question was submitted to me by an attendee in one of my webinars: Pertaining to wages paid in the first quarter after 3-12, does the entire paycheck qualify or only the portion of the paycheck that …
Revisiting ERC and Shareholder Wages
So this is how it goes when you work with taxes. One day you look at something and come to one conclusion. The next day you look at the same thing and come to a different conclusion.
Yesterday, I wrote about how shareholder wages …
FFCRA Leave and the PPP
The Families First Coronavirus Response Act (FFCRA) requires businesses with fewer than 500 employees to provide 2 weeks of paid sick leave to employees who contract COVID-19. The employer then receives a tax credit for those wages paid.
Other nuggets about the leave:
The …Tax Season 2020: The Lament of the Solo Tax Practitioner
Even before COVID-19 happened, I had said this was the worst tax season ever. COVID was just the rancid cherry on top of a moldy cake.
It’s easy to be negative and cynical — social media almost demands this attitude, I think. But I …
