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Don’t Miss the Opportunity for a Spousal IRA

Article Highlights:  Spousal IRA  Compensation Requirements  Maximum Contribution  Traditional or Roth IRA?  One frequently overlooked tax benefit is the spousal IRA. Generally, IRA contributions are only allowed for taxpayers who have compensation (the term “compensation” includes wages, tips, bonuses, professional fees, commissions, taxable alimony received, and net income from self-employment). Spousal IRAs are the exception […]

Is That Inheritance Taxable?

Article Highlights:  Estate Tax  Estate Tax Exemption  Fair Market Value at Date of Death  Step up in Basis  Community Property  Deferred Untaxed Income  Are inheritances taxable? This is a frequently misunderstood taxation issue, and the answer can be complicated. When someone passes away, all of their assets (their estate) will be subject to estate taxation, […]

Renting Your Home or Vacation Home for Short Periods

Article Highlights:  Airbnb, VRBO, and HomeAway  Rented for Fewer than 15 Days During the Year  The 7-day and 30-day Rules  Exceptions to the 30-Day Rule  Schedule C Reporting  Many taxpayers rent out their first or second homes without considering tax consequences. Some of these rules can be beneficial, while others can be very detrimental. If […]

SBA Questioning PPP Borrowers with Loans Over $2 Million

Article Highlights:  PPP Loans  Affected Borrowers  Loan Application Certifications  SBA Compliance Questionnaires  SBA Information Review  When Congress initially authorized the Paycheck Protection Program, it was intended to provide loans that would be partially or completely forgiven if used for the intended purposes of helping businesses affected by COVID-19 stay afloat and to help those businesses […]

Employee Holiday Gifts May Be Taxable

Article Highlights:  De Minimis Fringe Benefits  Cash Gifts  Gift Certificates  Group Meals  FICA and Wage Withholding  It is common practice this time of year for employers to give their employees gifts. A gift is infrequently offered and has a fair market value so low that it is impractical and unreasonable to account for it; the […]

PPP Economic Uncertainty Certification: Here’s What You Need to Know

On Thursday, December 9, 2020, the Small Business Administration (SBA) and the U.S. Department of the Treasury updated the Paycheck Protection Program (PPP) Loan FAQs regarding the recently imposed loan necessity questionnaires. FAQ 53 was released to address why some PPP borrowers are receiving a For-Profit and Non-Profit Loan Necessity Questionnaire (SBA Forms 3509 and […]

Preparing for 2021: Tax Planning Strategies for Small Business Owners

If you are a small business owner, every penny of your income counts. This means that you want to optimize your revenue and minimize your expenses and your tax liability. Unfortunately, far too many entrepreneurs are not well-versed in the tricks and tools available to them and end up paying far more than they need […]