Tax

The Internal Revenue Service announced that the third round of Economic Impact Payments will begin immediately. Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit. Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a…

1. Fewer workers may be hired. This would result in increased unemployment among the very workers the minimum wage is designed to help. Besides increasing our deficit, it also increases people’s dependency on the government. Workers then become idle and lose their work skills and habits. 2. The higher wage costs may be passed on…

Large rental losses claimed by real estate professionals are an IRS red flag. Duh! Real estate pros must meet two tests to pass the passive activity loss rules and deduct their rental losses. They must 1) spend over half of their working time and 2) more than 750 hours a year materially participating in each…

3 Questions Did you know that you get an 8% increase in your social security benefits for each year you delay claiming it past your full retirement age? Did you know that you can claim benefits based on your spouse’s work record? Did you know that you are NOT eligible for Medicare until you are…

A business owner can legally hire their kids. It is a great way to build a work ethic and provide some spending money to your children. Its also a great way to get a tax deduction. This can move some of your taxable income to your kid’s lower tax rates. Your children can also invest…

Is a business vacation an oxymoron? Not if you plan it properly! The trick is to sandwich your pleasure between your work. First you need to plan more workdays than days of pleasure. Sorry, no way around that if you want to write-off most of your trip. Your primary purpose must be for business therefore…

Death and Taxes DEATH: Corey Johnson was found guilty in 1993 for 7 murders he committed in 1992 and numerous other charges related to drug trafficking and acts of violence. He was put to death Friday January 15, 2021. While the defense attorneys (paid for by taxpayers) argued that the fatal injection would be cruel…

1. Check Your Withholding Make sure you are withholding enough income taxes from your wages. A little late for this year, but good for next year. 2. Consider Paying 2021 Bills Now If you plan to itemize your deductions this year accelerate them from 2021 to 2020. Only certain deductions can be accelerated and deducted.…

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New PPP Loan Forgiveness Applications Summarized from an article in the Journal of Accountancy by Jeff Drew The SBA issued a new interim final rule providing guidance on how to calculate employee and owner compensation for loan forgiveness in the new 24-week covered period created by the Paycheck Protection Flexibility Act. Congress passed the Paycheck Protection Flexibility Act to…