Category: Blog

Just about every day, the phone rings with a client or a friend of one asking about financial advisors.  “Do I know this firm?”  “Are they any good?”  Can I trust them?” All great questions, and all revolve around one root concern:  What should we look for when we try to begin a relationship with an individual or company designed to give us advise one creating (or maintaining) wealth? Well, there’s a BUNCH of ways to look at this challenge, but let me give you a few...

Small Business Administration (SBA) Economic Injury Disaster Loans (EIDLs) can be a great source of low-interest funding for businesses struggling with the economic impact of the COVID-19 pandemic.  Unlike Payroll Protection Program (PPP) loans, EIDLs are not forgivable—borrowers have to pay them back. But they have a low 3.75 percent interest rate and a long 30-year repayment period. Borrowers can repay them at any time without penalty. To obtain an EIDL, borrowers must sign a loan...

Okay, so you took the big Section 179 expensing deduction on your vehicle. How do you keep it? You might wonder: What do we mean by “keep it”? In tax law, there’s no free lunch. The Section 179 deduction comes with “recapture strings” attached.  When you claim your Section 179 deduction, you make a deal with the government to keep your business use above 50 percent during the “designated” depreciation periods (five years for vehicles). One Sad Story  In 2018, Jerry...

WASHINGTON- The IRS announces the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime website. The Centralized Partnership Audit Regime replaces the Tax Equity and Fiscal Responsibility Act (TEFRA) and the electing large partnership rules. The centralized partnership audit regime, or BBA, is generally effective for tax years beginning January 2018. Under the BBA, the IRS generally assesses and collects any understatement of tax (called an imputed underpayment)...

Of all the questions I get from business owners, the one that always seems to creep up – eventually – is about retirement. Entrepreneurs today all seem to realize that small businesses are the ones driving innovation, and those with truly world-changing systems and processes are going to be purchased by larger companies. At the same time, long-time employees are often “bought out” with early retirement plans offering six- and seven-figures to simply pack up and retire. So how can you...

We receive many questions about the Payroll Protection Program (PPP). Here are two of them with our answers. 1. Good Faith at the Time Question. What are your thoughts on the repercussions for business owners who acted in good faith based on the information available at the time and are now left to do things that may be more questionable to earn PPP loan forgiveness? Answer. First, with good faith, there’s no fraud issue as there is no fraudulent intent. Second, lenders and individuals...

Here’s how renting out your home while you take a two-month vacation interacts with your ability to use the $500,000 home-sale exclusion ($250,000 if single).  Remember, you have to use the home as a home for two of the five years before the sale to qualify for the home-sale exclusion. Exclusion Rule  The tax code allows you to exclude from gross income up to $500,000 of gain (joint return, $250,000 if single) from the sale or exchange of your home if during the five-year...

As school-age children return to one of several new ways to learn, college students are in uncharted territory, too.  While many schools and universities have been using distance learning for years, this year marks the first time many can offer few other alternatives.   One of the most interesting things about this challenge is how it might impact the long-debated economics of tuition costs.  Parents and students are asking hard questions about costs when much of the learning...

Well, like it or not, “back to school” has a whole new meaning this year.  While a lot of us still go to the office, a whole host of traditional office jobs are now being done remotely.   And so is school, with many systems around the world running virtual classrooms for kids or radically reduced classrooms making the most of social distancing guidelines.   While you might feel more confident than you did this Spring as schools shut down and teachers and administrators...

If you report your business income and expenses on Schedule C of your Form 1040, your PPP loan forgiveness is straightforward, as you see in the four answers below. 1. Paying Myself Question. I know that I can achieve full forgiveness based solely on my 2019 Schedule C income in 10.8 weeks under the 24-week program. Do I have to pay myself every week for 10.8 weeks? Answer. No. Let’s say your PPP loan is for $20,000. You could, for example, take $20,000 out of your business account in...