Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Tax Advantages of Hiring Your Children
The COVID-19 pandemic may create tax benefit opportunities for you and your family members. For example, you could hire your under-age-18 children, pay them $10,000 each and they could pay zero federal income taxes. And you or your corporation, the employer, would deduct the $10,000 you paid to each of the children. Schedule C Business Let’s say you operate your [...]
PPP Loan Forgiveness for Partnerships, S and C Corporations
PPP Loan Forgiveness for Partnerships, S and C Corporations If you operate your business as a partnership or an S or C corporation, you face entity-specific Payroll Protection Program (PPP) loan forgiveness rules that apply to you as an owner-worker in the business. The rules that apply to you do not apply to the rank-and-file employee group. The government puts [...]
COVID-19 CARES Act Creates Five-Year NOL Carryback
COVID-19 CARES Act Creates Five-Year NOL Carryback For many years, thanks to the net operating loss (NOL) provisions, the tax code gave you quick cash in your pocket if you had an overall net loss in a tax year. Unfortunately, starting in 2018, the Tax Cuts and Jobs Act (TCJA) took away your ability to get almost instant benefit from [...]
CARES Act Fixes TCJA Glitch on QIP
CARES Act Fixes TCJA Glitch on QIP Congress made an error in the Tax Cuts and Jobs Act (TCJA) that limited your ability to fully expense your qualified improvement property (QIP). The CARES Act fixed the issue retroactively to tax year 2018. If you have such property in your prior filed 2018 or 2019 tax returns, you likely have no [...]
COVID 19 Crisis Creates Silver Lining for Roth IRA Conversion
COVID 19 Crisis Creates Silver Lining for Roth IRA Conversion For years, financial and tax advisors have lectured about the wonderfulness of Roth IRAs and why you should convert traditional IRAs into Roth accounts. But, of course, you didn’t get around to it. In hindsight, maybe that was a good thing. For many, the financial fallout from the COVID-19 crisis [...]
COVID-19: Tax Benefits for S Corporation Owners
COVID-19: Tax Benefits for S Corporation Owners To help your small business, Congress created a lot of new tax-saving provisions due to the COVID-19 pandemic. Many of our clients own and operate S corporations and expect the tax law to treat them differently, as it does with their health insurance deduction. Perhaps you, too, would like us to help clarify [...]