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Residency Audits on Departing Californians
In the attached audio clip (click on photo above to listen), Spidell Publishing's "California Minute" discusses a subject that is gaining traction with the California Franchise Tax Board. With California’s increasing taxes and regulations, many people are leaving the Golden state for greener pastures. When a new [...]
Paying Workers Under the Table is a Lose-Lose
Paying workers under the table or with cash can save businesses a bundle in taxes. But the potential consequences are grave. Not only is this practice illegal and could result in severe financial penalties, but it also shortchanges employees. The novel coronavirus (COVID-19) pandemic has made this abundantly clear. As many laid-off workers who were [...]
Maximizing Your Home Renovation Dollars
(This is Blog Post #827)
Favorable Tax Changes to “Qualified Improvement Property”
The law providing relief due to the coronavirus (COVID-19) pandemic contains a beneficial change in the tax rules for many improvements to interior parts of nonresidential buildings. This is referred to as qualified improvement property (QIP). You may recall that under the Tax Cuts and Jobs Act (TCJA), any QIP placed in service after December [...]
Rioting Damage at Your Business?
Rioting damage at your business? The recent riots around the country have resulted in many storefronts, office buildings and business properties being destroyed. In the case of stores or other businesses with inventory, some of these businesses lost products after looters ransacked their property. Windows were smashed, property was vandalized, and some buildings were burned [...]
New Employer Tax Credits Flowchart
Many businesses that have been severaly impacted by the coronavirus (COVID-19) will qualify for two new employer tax credits - the Credit for Sick and Family Leave and the Employee Retention Credit. Sick and Family Leave Credit for Sick and Family Leave An employee who is unable to work (including telework) because of coronavirus quarantine [...]
Keep Life Insurance Out of Your Estate
If you have a life insurance policy, you probably want to make sure that the life insurance benefits your family will receive after your death won’t be included in your estate. That way, the benefits won’t be subject to the federal estate tax. Under the estate tax rules, life insurance will be included in your [...]
Setting Up a SEP Plan for 2019
Do you own a business but haven’t gotten around to setting up a tax-advantaged retirement plan? Fortunately, it’s not too late for setting up a SEP Plan for 2019 and reducing your 2019 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2019, and you can make contributions to it that [...]
Business Opportunity or Scam?
The first question you should ask yourself about anything that's too good to be true is . . . is it a legitimate business opportunity or scam. The investment “opportunity” could be anything from a new nutritional supplement to a foolproof method for "flipping" houses. But if the investment or product is advertised as “easy [...]
2019 Gift Tax Return Deadline is Coming Up
If you made large gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2019 gift tax return. And in some cases, even if it’s not required to file one, it may be beneficial to do so anyway. Who must file? Generally, you must file [...]
Determining a Reasonable Salary for a C Corporation Business Owner
If you’re the owner of an incorporated business, you probably know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason is simple. A corporation can deduct the salaries and bonuses that it pays executives, but not its dividend payments. Therefore, if funds are [...]
Avoiding Travel Voucher Scams
Most travelers love a deal that extends their budget — whether it’s a cheap flight, discounted hotel room or all-inclusive package tour. Unfortunately, sophisticated scammers are only too happy to profit from bargain hunters. When planning your next trip, be vigilant in avoiding travel voucher scams . . . particularly those selling at a deep [...]
Home Mortgage Interest Deduction Rules
If you own a home, the interest you pay on your home mortgage may provide a tax break. However, many people believe that any interest paid on their home mortgage loans and home equity loans is deductible. Unfortunately, that’s not true. First, keep in mind that you must itemize deductions in order to take advantage [...]
WOTC Extended Through 2020
If you’re a business owner, be aware that a recent tax law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for a valuable tax credit known as the Work Opportunity Tax Credit (WOTC). The WOTC was set to expire on December 31, 2019. But a new law passed late [...]
Don’t Get Shortchanged by a Liquidating Business
Several major companies have already filed for bankruptcy during the novel coronavirus (COVID-19) crisis and many more large and small businesses are expected to follow suit. Don't get shortchanged by a liquidating business. If you’re a creditor of a company that’s liquidating, it may be challenging to get back what you’re owed. That’s where a [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
