IRS is behind on alot of stuff…… Including, as of 09.08.21 …. 2.8 MILLION Amended Returns have yet to be processed! […]
Category: LLC
LLC ROADMAP (Operating Business with Rental Activity)
ACCOUNTING (You have TWO businesses) • The bookstore or contracting business (example) is an operating business. Keep revenue and expenses separate from the rental business. This does not mean a separate checking account but it may be easier to maintain records. That is up to you. o The bottom line profit is taxable for income and […]
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2018 FACTS on WHO PAYS TAX
2018 FACTS on WHO PAYS TAX The top 1% of individual filers paid 40.08% of all U.S. income taxes for 2018 per IRS (up from 2017’s figure of 38.47%). The top 1% earned at least $540,009. The top 5% earned at least $217,913 and paid 60.30% of total income tax. The top 10%, those with AGIs […]
NOL 2020 COVID-19
COVID-19 related changed to Net Operating Losses (NOL) CARES Act reverses the general ban on carrybacks of NOLs by requiring NOLs arising in 2018, 2019 or 2020 to first be carried back five years, unless the taxpayer elects to instead carry the NOLs forward. It suspends the 80% taxable income limit for NOLs in 2018 to […]
Qualified Disaster Payments to Employees During COVID-19
§139 of the Internal Revenue Code (the “Code and if you ever tried to read it you will know why they call it Code)”) excludes from a taxpayer’s gross income certain payments to individuals to reimburse or pay for expenses related to a qualified disaster. CONVID-19 is considered a Qualified Disaster in all states…. A […]
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Florida Sales Tax Questions
Use this link for questions. State of Florida is very good at responding. Be specific. https://floridarevenue.com/faq/Pages/contactus.aspx […]
SEP for 2020
In 2020 the MAX SEP is changed to 20% of earned income up to max of $57,000. […]
Mileage Deduction 2020
The 2020 standard mileage rate for business driving falls to 57.5¢ a mile. The mileage allowance for medical travel and military moves declines to 17¢ a mile in 2020. But the charitable driving rate stays put at 14¢ a mile. It’s fixed by law. […]
Medical Device Tax – GONE as is Cadillac penalty
Two Obamacare excise taxes are gone for good: The 2.3% medical device tax and the 40% tax on employer-sponsored “Cadillac” health insurance plans. […]
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Why does the 1040 reflect a different figure than the K-1?
Sometimes the loss on the K-1 is not totally deducted on the 1040 due to basis limitation…. And the unused basis limitation is carried forward in those computations. i.e. You put $10k into new business. The business has a loss of $12k on the first K-1 BUT the 1040 will only show up to […]
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