2020 Last-Minute Year-End General Business Income Tax Deductions

By Rob Weinberg | November 5, 2020 | Comments Off on 2020 Last-Minute Year-End General Business Income Tax Deductions

The purpose of this article is to get the IRS to owe you money. Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes. This article gives you seven powerful business …

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The Insurmountable Sin in an IRS Audit: A True and Sad Story

By Rob Weinberg | October 28, 2020 | Comments Off on The Insurmountable Sin in an IRS Audit: A True and Sad Story

Last month we wrote about the need for a good mileage log and showed you what it takes, in What Is the Unpardonable Sin in an IRS Audit? Here we are going to tell you a true story of how keeping the mileage record in Microsoft Outlook proved inadequate. The story is about Therone Johnson, …

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Avoid Trouble: Don’t Let the IRS Set Your S Corporation Salary

By Rob Weinberg | October 22, 2020 | Comments Off on Avoid Trouble: Don’t Let the IRS Set Your S Corporation Salary

You likely formed an S corporation to save on self-employment taxes. If so, is your S corporation salary Non-existent? Too low? Too high? Just right? Getting the S corporation salary right is important. First, if it’s too low and you get caught by the IRS, you will pay not only income taxes and self-employment taxes …

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The Latest Payroll Tax Deferral: An Offer You Should Refuse?

By Rob Weinberg | October 13, 2020 | Comments Off on The Latest Payroll Tax Deferral: An Offer You Should Refuse?

If you have employees, you must withhold their 6.2 percent share of the Social Security (OASDI) tax from their wages up to an annual wage ceiling ($137,700 for 2020). You pay the money to the IRS along with your matching 6.2 percent employer share of the tax. The combined 12.4 percent Social Security tax is …

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Government to Landlords: Drop Dead!

By Rob Weinberg | October 7, 2020 | Comments Off on Government to Landlords: Drop Dead!

During this COVID-19 pandemic, landlords have two big possible problems: Tenants who can’t pay the rent. Tax losses that they can’t deduct. We’ll start with the tenants and then move on to the rental property tax-loss issues. For the first time in U.S. history, residential landlords are subject to a sweeping nationwide federal moratorium on …

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PPP Update: Two New Rules for Owners of S and C Corporations

By Rob Weinberg | September 30, 2020 | Comments Off on PPP Update: Two New Rules for Owners of S and C Corporations

During the past month, the Small Business Administration (SBA) issued a new set of frequently asked questions (FAQs) and a new interim final rule, which in combination create the following good news for the Payroll Protection Program (PPP):  More forgiveness. The $20,833 cap on owner-employee compensation applies to cash compensation only. It’s not an overall …

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Seven Things to Know Before You Take Out an EIDL

By Rob Weinberg | September 23, 2020 | Comments Off on Seven Things to Know Before You Take Out an EIDL

You should always carefully read the loan documents before borrowing money for your business. This is doubly true when you borrow money from the government. Case in point: the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. The EIDL program provides loans of up to $150,000 to businesses in need of working capital …

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What Is the Unpardonable Sin in an IRS Audit?

By Rob Weinberg | September 16, 2020 | Comments Off on What Is the Unpardonable Sin in an IRS Audit?

Suppose you just received that lovely letter from the IRS telling you that you are the subject of an IRS audit. What one record receives special attention? What one record can create a nightmare for you? What one record makes the IRS suspect that you are the keeper of lousy records? Think of the record …

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Thinking of Moving to a Lower-Tax State? Tax Angles to Consider

By Rob Weinberg | September 9, 2020 | Comments Off on Thinking of Moving to a Lower-Tax State? Tax Angles to Consider

If you’re considering moving to a different state, taxes in the new state may be the deciding factor—especially if you expect them to be lower. This article identifies the relevant state-tax issues for folks who are thinking about moving to a lower-tax state. Here’s what you need to know.  Consider All Applicable State and Local …

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No PPP Loans Today, But You Can Still Get $150,000 from the SBA

By Rob Weinberg | September 2, 2020 | Comments Off on No PPP Loans Today, But You Can Still Get $150,000 from the SBA

Cash is king, especially during the worst recession since the 1930s. The hugely popular federal Paycheck Protection Program (PPP) that paid forgivable loans to millions of businesses ended on August 8. PPP loans could return in revamped form if Congress passes a new stimulus bill. But another source of relatively cheap money is available right …

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