2021 – 2/22 During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses…
2021 – 02/17 The events of the past year have taught business owners many important lessons. One of them is that, when a crisis hits, customers turn on their computers and look to their phones. According to one analysis of U.S. Department of Commerce data, consumers spent $347.26 billion online with U.S. retailers in the…
2021 – 02/16 Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Two ways to arrange a deal Under…
2021 – 02/12 Do you have a child age 17 or older or other dependent? You can’t claim the Child Tax Credit for these individuals but you may qualify for the Credit for Other Dependents. The maximum credit is $500 for each dependent who meets certain conditions. For example, the person can be: 1) a…
2021 – 02/12 New Ford and Porsche models join the ranks of plug-in vehicles available for a lucrative tax break. Buyers of certain electric passenger vehicles and light trucks can claim a credit for up to $7,500. The models added by the IRS to the list of qualifying vehicles are the 2021 Ford Escape Plug-in…
2021 – 02/10 More than 109,000 IRS notices were sent in error in January 2021, according to the National Tax Advocate (NTA). The notices (CP21C Letters) advised recipients who hadn’t received the first Economic Impact Payments (EIPs) that their payments had been applied to offset tax they owed from a prior year. The notices “are…
2021 – 02/10 The IRS begins accepting tax returns on Feb. 12. Ideally, you’ve been gathering tax records all year and have already made an appointment with us. Bring all W-2s, 1099s and documents about state tax refunds and other payments. You also may have received a Form 1095-A, B or C (Health Insurance statement)…
2021 -02/10 Using a strengths, weaknesses, opportunities and threats (SWOT) analysis to frame an important business decision is a long-standing recommended practice. But don’t overlook other, broader uses that could serve your company well. Performance factors A SWOT analysis starts by spotlighting internal strengths and weaknesses that affect business performance. Strengths are competitive advantages or…
2021 – 02/09 Are you self-employed and a survivor of COVID-19? If so, you may be able to claim a sick and family leave tax credit under the Families First Coronavirus Response Act. The law allows certain self-employed individuals, who due to COVID-19 were unable to work or telework for reasons related to their health,…
2021 – 02/08 The IRS has issued guidance related to the tax break allowing eligible teachers to deduct out-of-pocket expenses related to COVID-19 protective items. A recent law provides a $250 educator expense deduction, with respect to items purchased after March 12, 2020, for COVID-19 protection. The educator expense deduction rules permit eligible educators to…
2021 – 02/08 The U.S. Department of Justice (DOJ) and the IRS’s Criminal Investigation division are warning taxpayers about a new wave of COVID-19-related scams. Officials with the DOJ and IRS spotlighted a number of scams, including: text messages asking taxpayers to disclose bank account information under the guise of receiving Economic Impact Payments; phishing…
2021 – 02/08 A number of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2021. Some stayed the same due to low inflation. And the deduction for business meals has doubled for this year after a new law was enacted at the end of 2020. Here’s a rundown…
2021 – 02/05 As tax season kicks off on Feb. 12, 2021, the IRS wants to remind taxpayers of some points they might miss. For example, taxpayers who received interest income (of at least $10) from the IRS will be sent a Form 1099-INT, which must be reported on the 2020 tax return. Many received…
2021 – 02/03 Over the past year, the importance of leadership at every level of a business has been emphasized. When a crisis such as a pandemic hits, it creates a sort of stress test for not only business owners and executives, but also supervisors of departments and work groups. Among the most important skill…
2021 – 2/01 The Consolidated Appropriations Act (CAA), enacted on Dec. 27, 2020, allows corporations to deduct up to 100% of taxable income for charitable contributions for disaster relief. The IRS recently offered more details on requirements for the temporary deduction: 1) Qualified contributions must be paid by a corporation from Jan. 1, 2020, through…
