Many people are working from home during the COVID-19 pandemic. If you’re self-employed, you might be able to claim deductions for home office expenses against your business income—as long as you run your business from your home or perform certain functions there. There are two ways to claim this tax break: the actual expenses method…

If you’re like many Americans, you may be receiving letters from your favorite charities acknowledging your 2020 donations. But can you still claim a deduction for the donation on your 2020 income tax return if you haven’t received such a letter? The answer is: It depends. Requirements for substantiation In order to support a charitable…

In many industries, merger and acquisition activity slowed in 2020 due to COVID-19. However, analysts expect things to improve as the country emerges from the pandemic in 2021. If you’re thinking about buying or selling a business, you’ll want to make sure you understand the tax implications. Arranging a deal There are two basic ways…

By Thomas Cole, CPA, MST & Member of the Firm The US Treasury issued new rules on March 3, 2021, which increase PPP loan funds available to sole proprietors. Both first and second draw PPP loans can be based on the sole proprietor’s gross income for 2019 or 2020 (as listed on Schedule C). The…

During the COVID-19 pandemic, many businesses have experienced severe financial stress, and some may have delayed or missed loan payments as a result. Debtors who have become delinquent due to the pandemic may wish to ask lenders about restructuring their loans, rather than filing for bankruptcy. Debt restructuring as an alternative to Chapter 11 In…

Should you gift now? Or not? The answer isn’t simple. The doubling of the federal gift and estate tax exemption to an inflation-adjusted $11.7 million in 2021 is sometimes considered to mean that you use it or lose it. This means that you should gift now to take advantage of this exemption, which ends in…

For many people, paying 2020 taxes is more pressing right now than figuring out their 2021 tax situation. That makes sense! Your 2020 return is due in April—and the 2021 review is still a long way off. If you want to be ahead of the game, however, it’s still smart to get familiar with the…

Many tax-related limits affecting businesses are changed annually to account for inflation, and many have increased for 2021. Some, however, have stayed low, and there’s more good news: the deduction for business meals doubled for this year. Here’s what you need to know. Social Security changes There was a change in the amount of earnings…

The small print on your company’s financial statements give investors and lenders insight into knowledge that’s vital to business and investment decisions. These footnotes include account balances, accounting practices and potential risk factors. Make sure your footnote disclosures cover these areas.  1. Transactions with related parties If companies may employ friends or relatives (or give…

It might not sound that exciting, but in estate-planning terms, “tangible personal property” contains jewelry, antiques, photographs and collectibles. Sentimental value can make these difficult to plan for. If you’re not careful, arguing among your family members over these items can lead to hurt feelings, and even litigation. Clear communication You shouldn’t have to guess…

Most people who have traditional IRA or tax-deferred retirement accounts know that they have to take required minimum distributions (RMDs) after reaching a certain age to avoid penalty.  With the passage of the CARES Act last March, people were allowed to skip taking these withdrawals in 2020. Now that it is 2021, however, RMDs must…

What it means to you: IRS recently announced an expansion of their anti-fraud Identity protection program. According to IRS, the IRS 2021 Identity Protection Pin (IP PIN) opt-in program is available to all taxpayers. The IP PIN is a six-digit number assigned to help prevent Social Security numbers’ misuse on fraudulent federal income tax returns. An IP…