Individual Tax Return Preparation for 2021
Due to the enactment of legislation to offset the economic burden wrought by COVID-19, there is a lot to consider when reviewing year-end tax planning options. Pandemic-related tax breaks include an expanded dependent care assistance, payroll tax credits for self-employed individuals, substantial increases in the child tax credit and the earned income tax credit, $1,400 […]
Business Income Tax Planning Subjects for 2020
Depreciation Deductions Among the many changes made by the CARES Act, the one which may have the most impact is the correction of a technical error made in the Tax Cuts and Jobs Act of 2017 (TCJA). That error resulted in the 15-year recovery period that applied to qualified leasehold improvements, qualified restaurant property, and qualified […]
Individual Income Tax Planning Subjects for 2020
Effect of CARES Act Rebate on Your 2020 Tax Return Under the CARES Act, individuals with income under a certain level are entitled to a recovery rebate tax credit. These are direct payments (sometimes referred to as “stimulus checks”) to individuals by the government. Most, but not all, of these stimulus checks have already been sent out to […]
IRS Guidance on deferring withholding and payment of payroll taxes
The Department of Treasury and Internal Revenue Service issued guidance (August 28, 2020) implementing the Presidential Memorandum issued on August 8, 2020, allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee’s wages are below a certain amount. IRS Notice 2020-65 makes relief available for employers and generally […]
President Trump Signs Memorandum on Deferring Payroll Tax Obligations; Practitioners Grapple with Implications
On August 8, 2020, President Trump signed four executive actions which the Administration said will assist individuals and businesses suffering as a result of economic fallout from the COVID-19 pandemic. The actions came after stimulus talks on Capitol Hill ground to a halt. Of the four actions taken by President Trump, the one that will […]
SBA Clarifies Loan Forgiveness Limits for Owner Compensation; Releases New EZ Loan Forgiveness Application
The Small Business Administration an interim final rule that clarifies the amount of compensation that self-employed individuals are eligible to have forgiven. The SBA also revised its Paycheck Protection Program loan forgiveness application and issued a new EZ loan forgiveness application in an effort to streamline the loan forgiveness process. Changes Made to SBA Interim […]
Paycheck Protection Program Flexibility Act
As you may know, the initial rollout of the program was rocky and some provisions of the program were criticized by businesses as not doing enough to help. In an effort to address these issues and increase the program’s impact, Congress has passed, and the President has signed into law, the Paycheck Protection Program Flexibility […]
IRS Issues Extensive Guidance to Help Clarify Calculation of the Section 199A Deduction
In January, the IRS issued eagerly anticipated guidance on the qualified business income (QBI) deduction under Code Sec. 199A in final regulations, proposed regulations, and Rev. Proc. 2019-11. Code Sec. 199A generally provides a 20 percent deduction for qualified business income (QBI) from sole proprietorships, S corporations, partnerships, and LLCs taxed as partnerships. Thus, the […]
Bunching Deductions into 2019
As you may know, TCJA significantly increased the standard deduction for all taxpayers. This means that many individuals who previously received a tax benefit by itemizing deductions no longer do, because taking the standard deduction is more advantageous. For 2019, the standard deduction is $12,200 for single taxpayers, $24,400 for married taxpayers filing a joint […]
Medical Expenses and Health Savings Accounts
For 2019, your medical expenses are only deductible as an itemized deduction to the extent they exceed 10 percent of your adjusted gross income. Depending on what your taxable income is expected to be in 2019 and 2020, and whether itemizing deductions would be advantageous for you in either year, you may want to accelerate […]
