News

COVID-19: IRS Dramatically Expands Tax Filing and Payment Relief Due to the COVID-19 pandemic, the IRS has gradually postponed necessary tax filing and payment deadlines. Now, the IRS has issued new guidance postponing almost all tax-related actions over the next few months. This latest postponement is much more extensive...

CARES Act Fixes TCJA Glitch on QIP, Requires Action Congress made an error in the Tax Cuts and Jobs Act (TCJA) that limited your ability to fully expense your qualified improvement property (QIP). The CARES Act fixed the issue retroactively to tax year 2018. If you have such property...

Q&A: Are PPP Loan Forgiveness Expenses Deductible? Question If I obtain Paycheck Protection Program (PPP) loan forgiveness, can I still deduct the business expenses I paid with the loan forgiveness proceeds? Answer We have bad news—the IRS just released Notice 2020-32 telling us the answer is no. Quick Review...

COVID-19 Crisis Creates Silver Lining for Roth IRA Conversions For years, financial and tax advisors have lectured about the wonderfulness of Roth IRAs and why you should convert traditional IRAs into Roth accounts. But, of course, you didn’t get around to it. In hindsight, maybe that was a good...

COVID-19: Tax Benefits for S Corporation Owners To help your small business, Congress created a lot of new tax-saving provisions due to the COVID-19 pandemic. Many of you own and operate S corporations and expect the tax law to treat you differently, as it does with your health insurance...

Making Smart Selections from the COVID-19 Tax Relief Buffet The Paycheck Protection Program (PPP) Increase Act of 2020 adds billions to the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act delivered good news to individuals and businesses, including meaningful tax relief. The recent...

Get ready for this: “I’m from the government, and I’m here to help.” Here’s the deal: “I’m going to give you $20,833 today. I want you to give me $5,448 no later than two years from now. You can keep the $15,385 difference, tax-free—no strings.” It’s true. The lucky...

If You Don’t Want 100 Percent Depreciation, Elect Out or Else As you likely know, the TCJA increased bonus depreciation to 100 percent. Unlike most tax provisions that involve a tax election, this one requires you to elect out if you don’t want it. For example, you (or your...

Husband-Wife Partnerships: The Tax Angles When both members of a married couple participate in an unincorporated business venture, must it be treated as a husband-wife partnership for federal tax purposes? Answer: maybe, or maybe not. Figuring out the answer is important because it can have a huge impact on...

COVID-19: Tax Season Delayed Until July 15 – Wait or File Now? As you know, the COVID-19 pandemic has shut down much activity in the United States. The IRS decided to use its authority in a national emergency to postpone certain tax return filings and payments. This change affects...

Does California’s AB 5 Turn Your Contractors into Employees? The new California AB 5 law is upsetting to both (a) employers and (b) independent contractors for the following reasons: • Employers who hire independent contractors save on Social Security taxes, Medicare taxes, employment taxes, unemployment taxes, and paid vacation...

COVID-19: CARES Act Allows $100,000 Tax-Free IRA Grab and Repay COVID-19-Related Distributions from IRAs Get Tax-Favored Treatment If you are an IRA owner who has been adversely affected by the COVID-19 pandemic, you are probably eligible to take tax-favored distributions from your IRA(s). For brevity, let’s call these allowable...