Money

On March 11, 2021, President Biden signed the American Rescue Plan Act into law. The bill includes many provisions that have major tax impacts for 2020 and 2021 tax returns. As a taxpayer be aware and understand which ones affect your 2020 tax returns and plan for 2021. Here are some major provisions: Unemployment As […]

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) made many temporary changes in the tax law. The new Consolidated Appropriations Act (CAA) adjusted some of these and left others to die on December 31, 2020.  Below are insights into some of the changes.  Borrow $100,000 from Your IRA and Pay It Back within […]

Embedded in the COVID-19 relief law is $900 billion for financial assistance. As you would expect in these unusual times, some of the relief is in the form of direct government financial assistance and some is from tax benefits that can impact both tax year 2020 and tax year 2021.   Most of the provisions […]

An S corporation is a corporation that elects to pass its corporate income, losses, deductions and credits through to its shareholder(s). A shareholder of an S corporation reports the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. When a corporate officer performs services […]

Do you have a mileage log that will survive an IRS audit? If so, good for you! If not, get ready to give up all (not some, but all) of your vehicle tax deductions for not just one year but three years, as you will see in this true story.   The story is about […]

The IRS announced that tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the recent tax law changes. […]

Being a business owner comes with a number of substantial benefits: being your own boss, pursuing your passions, controlling the growth of the company. One benefit that’s often overlooked is the ability to use a business as a completely legal tax shelter. By taking advantage of tax strategies designed to protect business owners, you can […]

Before borrowing any money, especially from the government, you need to remember to always read the documentation involved to be sure you know all the ins and outs to what you are agreeing to. This is even more important when borrowing through the Small Business Administration’s (SBA Economic Injury Disaster Loan (EIDL) program. The EIDL […]

Here are seven powerful business tax deduction strategies that you can easily understand and implement before the end of 2020. 1.Prepay Expenses Using the IRS Safe Harbor – You just have to thank the IRS for its tax-deduction safe harbors. IRS regulations contain a safe-harbor rule that allows cash-basis taxpayers to prepay and deduct qualifying […]

The Temecula Valley Chamber of Commerce will host the 2020 Legislative Summit on December 1, 2020 from 8:00am-9:30am. It will be presented virtually as a Zoom webinar and there is no cost to attend. The Summit is the Chamber’s premier advocacy event with presentations by legislative and policy experts, as well as elected and appointed […]

With the end of the year fast approaching, it’s time to dissolve any inactive business to avoid having to pay extra fees and paperwork for 2021. When a business entity is no longer needed, has completed its business dealings, has completed its job in a foreign State, or even if it was never used for […]

With the end of tax preparation season for calendar businesses and individuals, you either complied and filed by the September 15 and October 15 Extension deadline or are delinquent, regardless of your choice, the common discussion during this period has been: “How can I save on taxes?” Some people had favorable results, and some did […]

If You’re Considering Moving to a Different State, Taxes in the New State may be the Deciding Factor Especially if you expect them to be Lower Consider All Applicable State and Local Taxes – If your objective is to move to a lower-tax state, it may seem like a no-brainer to move to one that […]

There are 3 categories the IRS uses to describe real estate investors that can dramatically change the taxpayer’s tax liability, namely: Real Estate Dealer Status Real Estate Developer Status Real Estate Professional Status Do you know which one are you? 1. Real Estate Dealer Status: is defined as someone who is involved in real estate […]

S Corporation Shareholder-Employee: Are You Paying Yourself Reasonable Compensation? An S corporation is a corporation that elects to pass its corporate income, losses, deductions and credits through to its shareholder(s). A shareholder of an S corporation reports the flow-through of income and losses on their personal tax returns and are assessed tax at their individual […]

Administrator of the U.S. Small Business Administration Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today on the resumption of the Payroll Protection Program (PPP): We are pleased that President Trump has signed into law the Paycheck Protection Program and Health Care Enhancement Act, which provides critical additional funding for […]

The IRS issued Notice 2020-18, Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, which clarifies some provisions for extended tax returns: The due date for filing Federal income tax returns is automatically extended from April 15, 2020 to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, […]

by Rob Britton CFA, CFP & Nicole Albrecht EA, CTC The Senate passed the legislation 96-0 and the bill now heads to the house for a vote tomorrow. If passed the bill would be the largest aid package in US history. The key points of the bill are as follows: The most anticipated piece of […]

“Professional Women Toastmasters provides a supportive and positive environment where members have the opportunity to overcome their fear of public speaking and sharpen presentation skills,” says Mary O’Dwyer, President for Professional Women Toastmasters. “Other benefits include the opportunity to increase one’s confidence, build critical thinking skills and become an effective listener,” says Kathy Sizemore, Vice […]

The number one audit risk that S-Corporations have to deal with is salary and wages paid to officers of there corporation. One of the fastest ways for the IRS to audit an S-Corporation is to file an 1120S tax return with no amount showing on Line 7. It is assumed by the IRS that no […]

A Form W-4, formerly known as “Employee’s Withholding Allowance Certificate”, is filled out by employees to tell employers how much tax to withhold from each paycheck. The employer uses the W-4 to calculate certain payroll taxes and remits the taxes to the IRS on the employee’s behalf. You’ll fill out a W-4 when you start […]

Helpful tips for tax time. Being a small-business owner isn’t easy. After all, balancing payroll, managing employees, drawing up marketing plans, and handling the bookkeeping can be stressful! Luckily, the Internal Revenue Service (I.R.S.) allows small-business owners to take some surprising deductions, which may help come tax time. Read on to learn more. Remember, the […]

Homeowner’s Insurance (Fire Insurance): The homeowner’s insurance landscape has changed considerably in California the past few years, as major wildfires have impacted our state. In some cases, insurance companies have non-renewed home policies and customers are forced to find another company or get coverage via the state’s California Fair Plan. Water Claims have also been […]

Here are some things you might consider before saying goodbye to 2019. What has changed for you in 2019? Did you start a new job or leave a job behind? Did you retire? Did you start a family? If notable changes occurred in your personal or professional life, then you will want to review your […]

With the end of tax preparation season for calendar businesses and individuals, you either complied and filed by the September 15 and October 15 Extension deadline or are delinquent, regardless of your choice, the common discussion during this period has been: “How did the new tax laws affect you?” Some people had favorable results, and […]

The Profit First principle does not try to change your habits, because that is nearly impossible. Profit First works with your existing habits. By first allocating money to different accounts, and then removing the temptation to “borrow” from yourself, your business will become fiscally strong and you will benefit from regular profit distributions. The Profit […]

Congratulations Larry Potter on the opening of Lawrence Potter Insurance Agency! Larry Potter, formerly with Strachota Insurance, is an integral part of the Temecula Valley Community and is involved with numerous local nonprofits. He currently serves on the Board of Urban Street Angels, an organization dedicated to helping homeless youth to get off the streets […]

If you are an officer in a corporation, you must be on payroll and receive regular checks that include all standard withholdings. If your company is structured as an S Corp, you are still required to receive regular paychecks with standard withholdings but there is also an option to give yourself additional funds separate from […]