With Summer here, most people are thinking of vacations, staycations, relaxation and… procrastination when it comes to filing taxes. However, the latter can lead to big headaches when suddenly September and October arrive with the realization that the time to gather and submit tax data is now. Important Dates …
June 15th marks the deadline to make the first of two Passthrough Entity (PTE) elective tax payments for qualifying PTEs. Qualified entities can make an election to pay a passthrough entity tax equal to 9.3% of its qualified net income. This tax is deductible on the federal entity return and …
For the first time in many years, long-standing residents are leaving California. According to the California State Department of Finance, the population declined by 173,000 between July 1, 2020 and July 1, 2021. This departure trend began in 2020, as many Californians headed for Texas and other western states. The …
The number of people investing in cryptocurrency is increasing as more investors become familiar with how this asset functions, may be acquired, held as an investment asset, or used in purchase transactions. Cryptocurrency, or what the IRS calls Virtual Currency, is a digital representation of value, aside from the U.S. …
Millions of taxpayers file for an extension each year, and for good reason. Filing an extension comes at no cost or penalty and provides up to an extra six months to complete the tax return filing process. There are additional benefits and considerations for taxpayers to keep in mind as …
California legislature recently passed SB 113, modifying the state’s elective tax on passthrough entities (PTE). The signing of this much anticipated bill makes taxpayer-friendly adjustments to the existing PTE tax law beginning (retroactively) on January 1, 2021, through January 1, 2026. In doing so, California joins the list of other …
California Expands Passthrough Entity Elective Tax Read More »
The deductibility of meals and entertainment expenses for business purposes changed, temporarily, as part of the Consolidated Appropriations Act (CAA) signed into law on December 27, 2020. Certain food and beverages expenses incurred during the 2021 and 2022 calendar year will be 100% deductible if purchased from a qualifying restaurant. Under Notice …
As the 2022 filing season rapidly approaches, taxpayers should be aware of federal tax law changes and updates that will affect individual 2021 income tax returns. For the 2021 tax year, tax rates remained the same; however, the federal government made certain changes to the income tax brackets to account …
With inflation hitting a 30-year high, now would be the time to consider tax-savings strategies for 2022. All taxpayers should be aware of the most significant tax deductions and credits to ensure they are taking advantage of those most applicable. Adding more funds to retirement accounts is one …
Tax-Saving Strategies for 2022 & Changes to Taxable Income Brackets Read More »
Gifting financial or personal assets in the present day offers immediate resources to a person’s beneficiaries and provides the extra enjoyment of watching the gifts enrich their lives. While it can be personally rewarding to bask in their delight, there are added tax benefits, such as reductions in the taxable …
The 2021 tax year is quickly ending, with only weeks left to take advantage of the available tax breaks. Below are some key strategies to potentially help minimize taxes. Evaluate Opportunities for Roth Conversions Investors with traditional IRAs might consider converting to a Roth IRA. Investors who move …
If an individual or company pays individual, partnership, estate, or corporation (in some cases) taxes, they are most likely required to file an Information Return with the IRS. The most common types of payments requiring an Information Return filing include payments for services performed by someone who is not …
What Requirements Must Be Met to File Information Returns? Read More »
Does your S corporation pay health and accident insurance premiums on behalf of a greater than 2-percent shareholder-employee? If so, there are rules to consider when it comes to health and accident insurance premiums, reporting, and deductibility. IRS Notice 2008-1 defines a 2-percent S corporation shareholder as “any person …
As we reach the end of the 2021 calendar year, there are several year-end tax items an employer should consider, such as the deductibility of company-owned and company-leased vehicles provided to their employees. It is important to keep track of business use and personal use of company vehicles separately. Personal …
Taxpayers may have an opportunity to deduct state taxes paid in 2021 by means of their pass-through entity – deductions that might otherwise be limited or lost. The Tax Cuts and Jobs Act of 2017 (TCJA) limited an individual’s deduction for state and local taxes (SALT) paid to $10,000 ($5,000 for …
Spiegel Accountancy recently launched a new website with a freshly branded look, simple and intuitive navigation, plus an enhanced level of security. The new website URL: www.spiegel.cpa is a restricted domain, specific to licensed CPA firms and individuals. The American Institute of CPAs (AICPA) introduced the .cpa domain exclusively to …
The IRS began initiating payments on July 15 to those who qualify for a Child Tax Credit (CTC). Families and individuals who filed their 2019 or 2020 tax return and claimed child tax credit are automatically enrolled in the CTC program and eligible to receive payments for the rest of …
The American Rescue Plan Act (ARPA) of 2021 expands the Child Tax Credit (CTC) for the tax year 2021. Payments for the increased child tax credit will begin on July 15th. Child Tax Credit Increase For the tax year 2021 only, families claiming the CTC will receive up to …
Taxpayers now have more time to compile their 2020 income taxes as the Internal Revenue Service (IRS) moves this year’s tax-filing deadline to May 17th, offering taxpayers and their accountants a huge sigh of relief. This move comes following many pleas from lawmakers and accountants to extend the deadline amid …
When giving assets to a beneficiary, whether cash or property, the government may want to know about it and might even want to collect what the Internal Revenue Service (IRS) refers to as a gift tax. Fortunately, a large portion of some gifts or estate assets are excluded from taxation and …
The IRS has increased scrutiny on Bitcoin and other cryptocurrency transactions in its effort to make those aware who previously neglected to declare these forms of virtual investments. The first question on the 2020 tax year Form 1040 for individuals asks about virtual currency transactions. However, the degree to which …
There are a variety of reasons for filing a tax extension; however, having an extra six months to complete the filing process would be at the top, particularly for the 2020 tax year. Aside from normal tweaks to tax laws, American taxpayers may need extra time to sift through the …
The mortgage industry was exceptionally lucrative in 2020 due to a surge in refinance loans triggered by historically low interest rates. Loan refinancing comprised over 50 percent of loan originations in 2020. According to data provider Black Knight, the mortgage industry originated more than $4.4 trillion in loans in 2020, …
Mortgage Lenders Look to Public Filing and SPACs Read More »
As the 2021 filing season rapidly approaches, here is a reminder of the federal tax law changes and updates that will affect individual 2020 income tax returns. For the tax year 2020, the tax rates are the same but there are some changes to the income brackets to account for …