Frequently Asked Questions
What is the best way to track expenses for my business?
What business structure should I choose for my business?
What business structure should I choose for my business?
Quickbooks is by far the leader in the industry & the easiest to use. We can guide you through the setup process and work with you to help you understand the program & its capabilities.
What business structure should I choose for my business?
What business structure should I choose for my business?
What business structure should I choose for my business?
While there are choices here, a Limited Liability Company (LLC) provides liability protection & offers more flexibility than other options.
Will I be itemizing under the new tax law?
What business structure should I choose for my business?
Will I be itemizing under the new tax law?
With the increased standard deduction, many people will no longer itemize deductions on their federal tax return. However, state laws differ. It is best to gather your expenses & let us help you determine if you will save money by itemzing.
2020 Tax Law Changes
CARES Act
Certain over-the-counter drugs as qualified medical expenses
OTC drugs may include - aspirin, other pain medications, allergy medications, menstrual care products, face coverings with a letter of Medical Necessity
HSA and FSA Eligible
Penalty-free Retirement Distributions
COVID Relief - Certain taxpayers are permitted to withdraw up to $100,000 from a retirement plan or IRA for COVID - related distributions without incurring the 10% premature distributions penalty - must be made in the 2020 calendar year - must be diagnosed with COVID or have a spouse diagnosed or suffered adverse financial consequences due to COVID - Income tax on the distribution can be spread out over 3 years - Funds can be redeposited to the retirement fund within a 3 year period
Temporary Waiver of Required Minimum Distributions RMDs - RMDs are waived for 2020
Partial Above the Line Charitable Contribution Deduction
Charitable contributions not in excess of $300 - Made in 2020 is allowed to taxpayers who don't itemize
EMPLOYER PROVISIONS - Employee Retention Credit * Deferral of Employer Payroll Taxes * Payroll Protection Program
Net Operating Losses, Business Interest & Bonus Depreciation
Net Operating Losses arising in 2018, 2019 or 2020 - can be carried back five years
Business Interest - Increased from 30 to 50% of taxable income for 2019 & 2020
Bonus Depreciation for Qualified Improvement Property - technical correction
Small Business Loans - EIDLs
SBA Loans - low interest working capital loans of up to $2 million by small business affected by COVID. Interest rate - 3.75% Term - max of 30 years - some of the loan may be able to be forgiven
Secure Act
Repeal of max age for IRA contributions.
Penalty free withdrawals from retirement plans in case of birth or adoption of a child under age 18 - not to exceed $5,000 - effective for distributions are 12/31/19
Increase in age for RMDs from 70 1/2 to age 72