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California Main Street Small Business Tax Credit II Begins 11/1/21

RogerRossmeisl

50 (AB-50) established the California Main Street Small Business Tax Credit II, which will provide COVID-19 financial relief to qualified small business employers. Small Business Tax Credit. California Assembly Bill No.

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California Storm Victims Qualify for Extended Tax Filing Deadlines

RogerRossmeisl

On January 10, 2023, IRS news release IR-2023-03 announced that California storm victims now have until May 15, 2023, to file various federal individual and business tax returns and make tax payments.

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How to Minimize the S Corporation LIFO Recapture Tax

RogerRossmeisl

If you’re considering converting your C corporation to an S corporation, be aware that there may be tax implications if you’ve been using the last in, first out (LIFO) inventory method. The post How to Minimize the S Corporation LIFO Recapture Tax appeared first on Roger Rossmeisl, CPA.

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Work Opportunity Tax Credit Provides Help to Employers

RogerRossmeisl

In today’s tough job market and economy, the Work Opportunity Tax Credit (WOTC) may help employers. Many business owners are hiring and should be aware that the WOTC is available to employers that hire workers from targeted groups who face significant barriers to employment.

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Worker Classification 101: Employee or Independent Contractor

RogerRossmeisl

As posted to IRS.gov as Tax Tip 2022-117 on 8/2/2022 A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two.

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IRS Releases Updated Cost Segregation Audit Techniques Guide

RogerRossmeisl

While ATGs are designed to provide guidance for IRS employees, they’re also useful to small business owners and tax professionals who. The post IRS Releases Updated Cost Segregation Audit Techniques Guide appeared first on Roger Rossmeisl, CPA.

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IRS/Energy Dept Issue Guidance, List of Cars Eligible for Revised EV Credit

RogerRossmeisl

Credit Amounts The Act introduces a $4,000 tax credit for the purchase of used electric vehicles (EVs), and updates the $7,500 credit for new EVs. The post IRS/Energy Dept Issue Guidance, List of Cars Eligible for Revised EV Credit appeared first on Roger Rossmeisl, CPA.

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Possible Tax Consequences of Guaranteeing a Loan to your Corporation

RogerRossmeisl

Before agreeing to act as a guarantor, endorser or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax consequences. This may be either a business or a nonbusiness bad debt deduction. A business bad debt can be.

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California AB-150 Provides SALT Cap Work-Around

RogerRossmeisl

On 7/16/2021, Governor Newsom signed into law AB-150, which provides a means by which certain pass-through entities (Qualified Entities) can make an election to pay California income tax (at the entity-level) on behalf of their owners, for which their consent must be given.

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Business Meal and Vehicle Expense Recordkeeping DOs and DON’Ts

RogerRossmeisl

If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax Court case.

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How New Business Start-up Expenses are Handled on your Tax Return

RogerRossmeisl

Despite the COVID-19 pandemic, government officials are seeing a large increase in the number of new businesses being launched. Census Bureau reports that business applications are up 18.6%. Small Business Tax Briefs Automobile Dealership CPA Firm automotive cpa Start-up Expenses

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Taking Advantage of the WOTC (Work Opportunity Tax Credit)

RogerRossmeisl

Background Businesses are having difficulties hiring an adequate number of employees as the economy resets after the COVID-19 lockdowns and their aftermath. As such, small businesses are having to think outside the box as they work toward locating amenable workers.

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Factors To Consider When Choosing a Business Entity

RogerRossmeisl

Are you planning to launch a business or thinking about changing your business entity? There are many factors to consider and proposed federal tax law changes being considered by Congress may affect your decision.

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Defer Tax with a Like-Kind Exchange

RogerRossmeisl

One way to defer a tax bill on the gain is with a §1031 “like-kind” exchange where you exchange the property rather than sell it. With real estate prices up in some markets (and higher resulting tax bills), the like-kind exchange strategy may be attractive.

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Who in your Business Can Be Hit with the “Trust Fund Recovery Penalty”?

RogerRossmeisl

There’s a harsh tax penalty that you could be at risk for paying personally if you own or manage a business with employees. Because taxes are considered property of the government, the employer holds them in “trust” on the government’s behalf until they’re paid over.

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Why What an S Corp Shareholder Receives and Reports is Different

RogerRossmeisl

You may have wondered why, in a given year, you may be taxed on more S corporation income than was distributed to you from the S corporation in which you are a shareholder. The answers lies in the way S corporations and their shareholders are taxed. entity-level tax).

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Payroll Provisions of the American Rescue Plan Act

RogerRossmeisl

The post Payroll Provisions of the American Rescue Plan Act appeared first on Roger Rossmeisl, CPA. Automotive Current Events Small Business Tax Briefs American Rescue Plan Act ARPA Automobile Dealership CPA Firm automotive cpa

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Infrastructure Law Sunsets Employee Retention Tax Credit Early

RogerRossmeisl

The Employee Retention Tax Credit (ERTC) was a valuable tax credit that helped employers survive the COVID-19 pandemic. It now only applies through September 30, 2021 (rather than through December 31, 2021) — unless the employer is a “recovery startup business.”

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How Entrepreneurs Expenses are Claimed on Tax Returns

RogerRossmeisl

While some businesses have closed since the start of the COVID-19 crisis, many new ventures have launched. Entrepreneurs have cited a number of reasons why they decided to start a business in the midst of a pandemic.

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Maximize Your Depreciation with a Cost Segregation Study

RogerRossmeisl

If your business is depreciating over a 30-year period the entire cost of constructing the building that houses your operation, you should consider a cost segregation study. Fundamentals of depreciation Generally, business buildings have a 39-year depreciation period (27.5

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Cash in on Depreciation Tax Savers

RogerRossmeisl

As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you can cash in on depreciation tax savers such as §179 for business property.

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Recent FTB Clarifications on Pass-Through Entity Tax (AB-150)

RogerRossmeisl

Recent pass-through entity (PTE) tax (AB-150) clarifications from the Franchise Tax Board (FTB) underscore that detailed planning is critical when considering this credit. Logistics of PTE Tax Payments / K-1 Recipient Credits Prior to.

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10 Facts About the Pass-Through Deduction for Qualified Business Income

RogerRossmeisl

Are you eligible to take the deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction or §199A deduction. The deduction has two components: 20% of QBI from a domestic business operated as.

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PPP Loan Tax Consequences

RogerRossmeisl

The Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder about the PPP loan tax consequences.

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What IRS Auditors Know About Your Business Industry

RogerRossmeisl

In order to prepare for a business audit, an IRS examiner generally does research about the specific industry and issues on the taxpayer’s return. The post What IRS Auditors Know About Your Business Industry appeared first on Roger Rossmeisl, CPA.

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Tax Depreciation Rules for Business Automobiles

RogerRossmeisl

If you use an automobile in your trade or business, you may wonder how depreciation tax deductions are determined. If, instead, you use the standard mileage rate (56 cents per business mile driven for 2021), a depreciation allowance is built into the rate.

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Understanding the Passive Activity Rules

RogerRossmeisl

Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? Instead, they’re carried forward, indefinitely, to tax years in which. The post Understanding the Passive Activity Rules appeared first on Roger Rossmeisl, CPA.

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Claiming a Theft Loss Deduction if Your Business is the Victim of Embezzlement

RogerRossmeisl

A business may be able to claim a federal income tax deduction for a theft loss. Tax Court decision illustrates how that’s sometimes difficult to do. Small Business Tax Briefs Automobile Dealership CPA Firm automotive cpa Embezzlement Theft Loss Deduction

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Temporary Relief for Employers Using Automobile Lease Valuation Rule

RogerRossmeisl

The post Temporary Relief for Employers Using Automobile Lease Valuation Rule appeared first on Roger Rossmeisl, CPA. Automotive Small Business Tax Briefs Automobile Dealership CPA Firm Automobile Lease Valuation Rule automotive cpa Notice 2021-7

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Understanding How to Report Large Cash Transactions (Form 8300)

RogerRossmeisl

The Internal Revenue Service recently reminded businesses (in News Release 2021-47) of their responsibility to report large cash transactions via the filing of Form 8300, Report of Cash Payments Over $10,000, and encourages e-filing to help them file accurate, complete forms.

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Reporting M&A Transactions to the IRS

RogerRossmeisl

If you’re considering buying or selling a business — or you’re in the process of an M&A transaction — it’s important that both parties report it to the IRS and state agencies in the same way. The post Reporting M&A Transactions to the IRS appeared first on Roger Rossmeisl, CPA.

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SBA Releases Interim Final Rules Regarding PPP Second Draw Loans

RogerRossmeisl

The Treasury Department and Small Business Administration (SBA) have released Interim Final Rules (IFR) regarding the permission of “second draw loans” under the Paycheck Protection Program (PPP) recently authorized by the Consolidated Appropriations Act, 2021 (CAA 2021).

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5 Ways to Take Cash Out of Your Corporation

RogerRossmeisl

Owners of closely held corporations are often interested in easily withdrawing money from their businesses at the lowest possible tax cost. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.”

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Revisiting the Employee Retention Tax Credit

RogerRossmeisl

The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules for businesses that have considered revisiting the Employee Retention Tax Credit.

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SBA Re-Opening PPP for All Lenders by 1/19/2021

RogerRossmeisl

Containing extensions and expansions of the PPP, it provides additional funding for what has been a popular provision with many small businesses included in the Coronavirus Aid, Relief and Economic Security (CARES) Act. A 1/13/2021 U.S.

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Per-Diem Rates for Post-9/30/20 Business Travel

RogerRossmeisl

IRS issued Notice 2020-71 which contains the special per-diem rates for taxpayers to use, after 9/30/2020, to substantiate ordinary and necessary business travel expenses. Background An employer may pay a per-diem amount to an employee on business-travel status instead of reimbursing actual substantiated expenses for away-from-home lodging, meal and incidental expenses (M&IE). The post Per-Diem Rates for Post-9/30/20 Business Travel appeared first on Roger Rossmeisl, CPA.

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SBA Announces Opening of PPP First Draw Loan Increases

RogerRossmeisl

The post SBA Announces Opening of PPP First Draw Loan Increases appeared first on Roger Rossmeisl, CPA. Automotive Small Business Tax Briefs Automobile Dealership CPA Firm automotive cpa PPP Loans

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“Reasonable Compensation” for C Corporation Business Owners

RogerRossmeisl

Owners of incorporated businesses know that there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. Thus, if funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient.

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California 1099-NEC Filing Requirements

RogerRossmeisl

In IRS Tax Tip 2020-80, the IRS explained new Form 1099-NEC, Nonemployee Compensation for business taxpayers who pay or receive nonemployee compensation. Starting in tax year 2020, payers must complete this form to report any payment of $600 or more to a payee.

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Consider a Heavy SUV as Your New Business Vehicle

RogerRossmeisl

Are you thinking about buying or replacing a vehicle that you’ll use in your business? If you consider a heavy SUV, you may be able to benefit from lucrative tax rules for those vehicles. The only requirement is that you must use the vehicle more than 50% for business.

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An S Corporation Could Cut Your Self-Employment Tax

RogerRossmeisl

If your business is organized as a sole proprietorship or as a wholly owned limited liability company (LLC), you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by conducting business as an S corporation.

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Can Your Business Benefit from the Enhanced Employee Retention Tax Credit?

RogerRossmeisl

COVID-19 has shut down many businesses, causing widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls are eligible for a refundable Employee Retention Tax Credit (ERTC), which was extended and enhanced in the latest law.

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SBA Releases Guidance on PPP Extension and Expansion

RogerRossmeisl

The Treasury Department and Small Business Administration (SBA) have released Interim Final Rules (IFR) regarding the recent extension and expansion of the Paycheck Protection Program (PPP) as authorized by the Consolidated Appropriations Act, 2021 (CAA 2021).

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