What do we know about the Wildwood mayor’s tax fraud case?
A number of oddities and inconsistencies in the news reporting of this case prompted this article. This post is formatted in short bullet points meant to distinguish what we know from reliable sources (fact) and what we don’t know (commentary). I highlighted the words “tax preparer” and “attorney” because these are of particular personal interest.
How to work with a remote accountant
Even though it’s been more than 25 years since I moved from a physical office to an online service business, some new clients are just considering the possibilities and advantages of remote accounting now. This 14-minute video is meant to introduce six key concepts if you have not worked with a remote accountant before.
Six common tax accounting risks of virtual currencies:
These are common tax issues for taxpayers who have exposure to virtual currencies:1. Switching accounting methods or using different accounting methods for different wallets.2. Blockchain technology is expected to lead to eventual higher tax audit rates than would exist otherwise.3. John Doe summons being used by government, matching with disclosure question on form 1040.4. Loss deduction only after sale, not because it is worthless. (Theft loss or worthless securities deductions do not apply).5. Incomplete reporting: not reporting all wallets.6. No deduction of charitable donation without independent appraisal.
Confused over Section 199A business earned income deduction for multi-entity businesses?
(Note this post raises questions but provides no substantive advice or conclusions. My focus in this and most blog posts is the practical effect on my target client group rather than an academic assessment of the law). I gave myself a personal ‘refresher course’ yesterday in re-reading parts of 1.199A-5 and REG-107892-18 , two of the applicable but difficult tax regulations related to the 20% business income deduction. My focus was a situation when a non-incorporated person’s business generates income from both a ‘specified service trade or business’ (SSTBs) and not SSTBs, then: 1) What are the accounting/reporting requirements, and
Thinking about an S corporation?
Some social media marketers heavily push the tax saving potential of S corporations. Seasoned tax professionals and small business attorneys are not so entheusiastic. This week I was asked about this tax planning approach by two businesses with many similarities. This worksheet estimates the benefits and the costs of each. The conclusion: sometimes an S-corporation is worth consideration as a tax planning tool and sometimes it is not. The National Law Review article mentioned in the video is here: Post-recording note: The video does not discuss the additional ongoing accounting costs or requirements of running a business with an S
Common small business expenses
Thanks to Shivangi Agrawal, CPA, for this list of common small business expenses that might be deductible on a tax return. (Note, however, that these do not apply to those who are paid wages on a Form W2). ➖ Office expenses, including rent, utilities, and supplies. ➖ Business travel expenses, including transportation, lodging, and meals. ➖ Equipment purchases, including computers, printers, and office furniture. ➖ Marketing and advertising expenses, including website development and social media advertising. ➖ Professional development and education expenses. ➖ Employee salaries and benefits. ➖ Health insurance premiums for small business owners and their employees. ➖ Home office expenses for those who work from home.
Support for TurboTax users
You do your own tax returns but just have an occasional tax or financial question? Take advantage of our low-priced client care plan. It’s just $92 per month and you can start and stop anytime. Immediate benefits This plan initially includes: One business day staff response time to all communications during business hours. Pre-negotiated written work plan including goals, timeline, expected results, and pricing of additional work. Email updates at least weekly for active projects in the work plan. Secure message communication, secure electronic document transfer. Electronic storage of tax documents with bank level security. Additional benefits available through plan
NJ Covid relief payments are not taxable
Today IRS affirmed that Covid era relief payments made by State of New Jersey are not taxable. https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers?fbclid=IwAR0f90_ehCncFZ-lyOOgEJ2u1kkgHRCBFFG_kvy64kDQxEhnRN2Qi3rTEgA
“Can you handle my tax return?”
“Can you handle my tax return?” This is the most frequent business question I receive year-round, and even more so in tax season. My response is usually the same: Yes, I would love to, but we should consider a few things if I am only handling your tax return and not providing other normal advisory and support services. 1. COST: My client service system is structured for more than tax return preparation. I tell clients that I hope that the tax return preparation is the least valuable service I provide to them. I am pre-conditioned to focus on helping you
New Jersey real estate tax update
NJ real estate taxes are among the highest in the nation, and our local South Jersey neighborhoods hold some notorious statistical distinctions in real estate tax levels that I’ve written about in the past. This year the Anchor program replaces the NJ Homestead Benefit program. The new program is significantly different from the old tax relief program. The number of New Jerseyans now eligible for the new Anchor program is three times the number that were eligible for the Homestead Benefit. Although the application process is presumably designed to be straightforward, I already see at least one or two possibly