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100% of Business Meals Deductible in 2021 & 2020
On December 27, 2020, congress passed the Consolidated Appropriations Acts (CAA). It includes a temporary provision that provides for a 100% deduction for meals purchased from a restaurant after December 31, 2020, and through December 31, 2022. Please note that all other legislation regarding the meals and entertainment deduction did not change. For bookkeeping purposes…
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2021 Tax Filing Season begins Feb. 12th
The IRS announced that the tax season will start on Friday, February 12th 2021. This is when they will begin accepting and processing 2020 tax year returns. The deadline will still be Thursday, April 15th 2021 for the vast majority of taxes. The IRS plans to have the first refunds be administered during the first…
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2020-2021 Tax Planning Guide
We hope you and your family are doing well and staying healthy during these unprecedented times. With 2020 rapidly coming to a close soon (thankfully!), we are once again reaching out to share our annual Tax Planning Guide with you. The 2020/2021 Tax Planning Guide is available here. The massive changes brought to us in…
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Tax breaks for families with the Secure Act:
The new secure act has some tax benefits for families who have children with student loan debt and for growing families. It would allow 529 accounts to qualify for student loan repayment of $10,000 a year. If parents have funds remaining in educational savings loans accounts they can now help their graduated child by paying…
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Benefits for Individuals under new secure act
Starting in 2020, a new law takes into effect that will help expand opportunities for individuals to increase retirement savings. There is no longer a restriction to the age limit that contributions can be made into a traditional IRA. After reaching age 70 ½, you can make qualified charitable contributions of up to $100,000 per…
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Cryptocurrency: Hard Fork and Airdrop
The IRS has released Rev. Rul. 2019-24 to provide guidance on the tax treatment of receiving a cryptocurrency as a result of a hard fork and an airdrop. An owner of the existing cryptocurrency has no gross income if the new cryptocurrency has not been received as a result of a hard fork. However, gross…
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401(k)’s for Everyone
The new Secure Act that takes into effect starting 2020 will allow for more individuals to qualify for 401(k) plans and will make things easier for employers. The new law will allow an increase from 10% of wages to 15% of wages in which they can automatically enroll workers in “safe harbor.” The new law…
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The end to “Stretch IRA’s”
Under the new Secure Act, sticker laws are in place for post-death minimum distributions starting in 2020. Before the required minimum distribution(RMD) rules allowed non-spouse beneficiary’s to stretch out the distributions from an Inherited IRA. The new law changes the way RMD’s are taken if the owner died after 2019. The beneficiary must drain the…
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California Conformity to Elimination of Partnership Technical Termination Rule
The Tax Cuts and Jobs Act (TCJA) eliminated the rule of technical terminations for partnerships for taxable years beginning after December 31, 2017. At the time the TCJA was passed, California did not conform to the TCJA’s repeal of technical termination rule. However, as part of Assembly Bill 91 passed on July 1, 2019, California…
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California Individual Health Care Mandate
Senate Bill 78 would require California residents to maintain minimum essential health coverage beginning January 1, 2020. Californians who fail to maintain essential health coverage would owe financial penalties unless they qualify for available exemptions. Please click on the link below for more information including summary of penalties and possible exemptions available to Californians. https://www.ftb.ca.gov/about-ftb/newsroom/news-articles/health-care-mandate.html