Let’s say you gave someone $600k of property at today’s market value. It has been owned along time and only $30k is the original purchase price. We can add improvements to the original $30k say a pool, additional room,…. Add those improvements of $40k to the $30k and we have what we call BASIS of $70k. That […]
Category: Payroll Tax
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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Premature Distribution during VIRUS
When a premature distribution is made, it needs to be marked as a coronavirus-related distribution. The distribution can be made any time in 2020 up to an aggregate limit of $100,000 and the 10% additional tax is waived. You can also spread out the tax burden over three years (2020, 2021, and 2022) or decide […]
NOL (Net Operating Loss) Changes for 2018
A net operating loss (NOL) is when business losses exceed income. Prior toJanuary 1, 2018, NOLs were able to offset 100% of taxable income. They were allowed to be carried back two years and carried forward for twenty years. You could affirmatively elect with a timely filed return to NOT carryback (the default) and instead […]
2018 Can Unreimbursed Employee Expenses be Deducted?
Can unreimbursed employee expenses be deducted? No, not for a W2 employee. Any of the 2017 expenses and years prior that were subject to a 2% of AGI limitation are no longer deductible. Yes, for independent contractors. Yes, for Statutory employees. The best example of a Statutory Employee is an outside insurance […]
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2018 Unreimbursed Mileage – Unreimbursed expenses for W2 Employee
Assuming you are a W2 employee (not an independent contractor)….. There no longer is any deduction for unreimbursed employee expenses… GONE! That means, unfortunately, you have legitimate expenses you cannot deduct. In an ‘UNACCOUNTABLE’ plan (your allowance), it is suppose to be added to your W2 and taxed for both FICA and Federal Withholding. It is an […]
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20% QBI Deduction (Qualified Business Income)
SUB S OWNERSHIP CHANGE
If a shareholder terminates his or her interest in an S corporation during the tax year, the S corporation, with the consent of all affected shareholders (including those whose interest is terminated), may elect to allocate income and expenses, etc., as if the corporation’s tax year consisted of 2 separate tax years, the first of which ends […]
1099’s – can we just do them?
For many things processed at www.USATaxHelp.com, we will need to submit your authorization in the form of a Power of Attorney (POA). If it is an income issue, audit issue, etc we will need one type POA (F2848)… if it is authorization to file payroll tax forms… IRS has another form (F8655) as does State of Florida (DR600)….. […]
Unemployment Tax (Florida) Increase for 2011
State of Florida will be increase the minimum state unemployment tax rate. The current minimum rate of 0.36% will nearly triple to 1.08%. […]
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