The U.S. Senate and House of Representatives passed a $900 billion COVID-19 Pandemic Relief bill Monday night. We have not yet reviewed all 5,500 pages, but here is what we know so far: PPP round 2: $267.5 billion in PPP loan funds available through a similar process as round 1. Only businesses with 300 or…
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If you’re like most business owners and self-employed individuals, 2020 taught you how important it is to have well documented financial records. If applying for PPP or EIDL was a scramble, it’s time you consider finding a professional CPA. We take great pride in knowing that our clients had the necessary documents at their fingertips…
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Many Americans receive disability income. You may wonder if — and how — it’s taxed. As is often the case with tax questions, the answer is … it depends. The key factor is who paid for the benefit. If the income is paid directly to you by your employer, it’s taxable to you as ordinary…
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It may be Halloween, but nothing is as scary as not understanding your financial situation. When was the last time you took an in-depth look into your finances? This year seems to have forced many people and businesses to evaluate their budgets. While some may avoid conversations about money, a thorough financial evaluation can help…
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If you recently launched a business, you may want to set up a tax-favored retirement plan for yourself and your employees. There are several types of qualified plans that are eligible for these tax advantages: A current deduction from income to the employer for contributions to the plan, Tax-free buildup of the value of plan…
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If you invest in mutual funds, be aware of some potential pitfalls involved in buying and selling shares. Surprise sales You may already have made taxable “sales” of part of your mutual fund investment without knowing it. One way this can happen is if your mutual fund allows you to write checks against your fund…
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If your small business is planning for payroll next year, be aware that the “Social Security wage base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021, the FICA tax rate for both employers and…
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Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against earned…
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October 15 is the deadline for individual taxpayers who extended their 2019 tax returns. (The original April 15 filing deadline was extended this year to July 15 due to the COVID-19 pandemic.) If you’re finally done filing last year’s return, you might wonder: Which tax records can you toss once you’re done? Now is a…
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IRS audit rates are historically low, according to the latest data, but that’s little consolation if your return is among those selected to be examined. But with proper preparation and planning, you should fare well. In fiscal year 2019, the IRS audited approximately 0.4% of individuals. Businesses, large corporations and high-income individuals are more likely…
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