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What is the unpardonable sin in an IRS audit? Suppose you just received that lovely letter from the IRS telling you that you are the subject of an IRS audit. What one record receives special attention? What one record can create a nightmare for you? What one record makes...

Seven Things to Know Before You Take Out an EIDL Small Business Administration (SBA) Economic Injury Disaster Loans (EIDLs) can be a great source of low-interest funding for businesses struggling with the economic impact of the COVID-19 pandemic.  Unlike Payroll Protection Program (PPP) loans, EIDLs are not forgivable—borrowers have...

No PPP Loans Today, But You Can Still Get $150,000 from the SBA Can your business use an infusion of cash to deal with losses caused by the COVID-19 epidemic?  The hugely popular federal Payroll Protection Program (PPP) loan program that paid forgivable loans to millions of businesses ended...

Don’t Let Section 179 Recapture Hurt You Okay, so you took the big Section 179 expensing deduction on your vehicle. How do you keep it? You might wonder: What do we mean by “keep it”? In tax law, there’s no free lunch. The Section 179 deduction comes with “recapture...

Four Insights into the PPP Loan and Its Forgiveness We receive many questions about the Payroll Protection Program (PPP). Here are two of them with our answers. 1. Good Faith at the Time Question. What are your thoughts on the repercussions for business owners who acted in good faith...

Does Renting My Home for Two Months Kill the $500,000 Exclusion? Here’s how renting out your home while you take a two-month vacation interacts with your ability to use the $500,000 home-sale exclusion ($250,000 if single). Remember, you have to use the home as a home for two of...

Five Answers to Spending the PPP Money on Your and Your Employees If you report your business income and expenses on Schedule C of your Form 1040, your PPP loan forgiveness is straightforward, as you see in the four answers below. 1. Paying Myself Question. I know that I...

All About Limited Liability Companies (LLC) Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities. LLC owners are called members. · Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as...

Working at Home? Don’t Overlook These Deductions Whether you claim a business office in the home or are simply working at home, say because of COVID-19, you likely have some former personal assets that you now use for business. Ah, new tax deductions! Yep. Say you don’t claim a...

Two Correct Ways to Deduct Your Home Office with a Partnership With the COVID-19 experience, you and your partners may be doing a lot of work from home or even working from home primarily. Is the home-office deduction in the mix? If you operate your business as a partnership,...

Raise Hell: Help Lawmakers Make PPP Expenses Tax Deductible As you read this, it’s likely that your lawmakers are working on the next Payroll Protection Program (PPP) package. And hopefully, in this next package they will include a provision that allows you to deduct business expenses that you pay...

Act Now: IRS Creates New Path for Undoing RMDs Over the past few decades, federal taxes have generally trended lower. That era may be coming to an end, especially for well-off individuals. The major factor to consider is that our country might finally be forced to confront the issue...