Nonitemizers can claim an above-the-line deduction max of $300for charitable 2020 cash contributions. Individuals not itemizing Schedule A can take both the standard deductionand a max deduction of up to $300 in cash contributions. This is per return, meaning couples who file jointly can deduct only $300, not $600. The 60%-of-AGI limit on charitable gifts of […]
Offer in Compromise (OIC)
An Offer in Compromise (OIC) is an offer by you to settle the tax debt for less than what you owe. Two payment options: Lump Sum Cash is 20% upfront with balance over five or fewer payments within 5 months of the day your offer is accepted. Periodic Payment requires first […]
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 […]
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 […]
2019 IRS Payments & 2020 estimates DELAYED – Filing dates not changed
March 18, 2020 The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. The filing deadline for tax returns remains April 15, 2020. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t […]
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SEP for 2020
In 2020 the MAX SEP is changed to 20% of earned income up to max of $57,000. […]
CAPITAL LEASE v TRUE LEASE
There are two kind of leases. Let’s say you “lease” a copier for three years. Sales tax is paid (per Florida lease rules) and at the end of the three years you can buy it for one dollar. That is called a CAPITAL LEASE. It is really just another form of financing. In that case […]
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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