Flex Tax and Consulting Group (FTCG)
To provide tax related information to the public
During this COVID-19 pandemic, landlords have two big possible problems: Tenants who can’t pay the rent. Tax losses 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 evictions […]
Government to Landlords: Drop Dead! Read More »
Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities. LLC owners are called members. Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single member LLC for federal income tax purposes. We will call LLCs
All About Limited Liability Companies (LLCs) Read More »
As you read this, it’s likely that your lawmakers are working on the next Payroll Protection Program (PPP) package. And hopefully, in this next package they will include a provision that allows you to deduct business expenses that you pay with your PPP money. Let’s explain. In the CARES Act, Congress said: For purposes of
Raise Hell: Help Lawmakers Make PPP Expenses Tax Deductible Read More »
Whether you claim a business office in the home or are simply working at home, say because of COVID-19, you likely have some former personal assets that you now use for business. Ah, new tax deductions! Yep. Say you don’t claim a home-office deduction but now you are working at home and sitting in the
Working at Home? Don’t Overlook These Deductions Read More »
How much is clarity worth? A lot, a whole lot. And how much is making things easier worth? Of course, it’s a lot, a whole lot, too. We now have both the new (a) clarity and (b) easy road to Paycheck Protection Program (PPP) loan forgiveness for the self-employed with no employees. Get ready to
Government Clarifies PPP Loan Forgiveness for the Self-Employed Read More »
We have already known a lot of charity entities in the world. They always had different operating under different business types; foundations, nonprofit organizations, or charities participate in our daily activities. We may use these terms incorrectly and interchangeably. Although all the organizations mentioned are to help the less fortunate in society, they differ in
What is the difference between a nonprofit and foundation? Read More »
Internal Revenue Code § 121 provides taxpayers with an income tax exclusion from the gain of taxpayer selling a primary residence. The exclusion amount for a single up to $250,000 and married couples will raise to $500,000. To qualify for the exclusion, the taxpayer-owned and used the property as the taxpayer’s principal residence for periods
Nonresident Aliens and The Section 121 Principal Resident Exclusion Read More »
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 you, the owner-worker, in
PPP Loan Forgiveness for Partnerships and S and C Corporations Read More »
One of the advantages of operating a business as a partnership is the right to make special allocations of tax items among the partners. You have the same opportunity if you run your business as an LLC that’s treated as a partnership for federal tax purposes. What Is a Special Tax Allocation? A special tax
Take Advantage of Partnership Special Allocation Read More »
The PPP free-cash program to assist businesses during the COVID-19 pandemic is gaining traction and clarity. If you operate your business as a partnership, you have several recent developments that make the free-cash program more to your benefit. Partner’s Self-Employment Income Creates Cash and Forgiveness Just as sole proprietors failed originally to ask for their
Six Insights into the PPP for Partnerships Read More »
Since the CARES Act passed, there has been a lot of talk about getting funding to businesses to help the economy. Businesses received some relief through Payroll Protection Program loans, Economic Injury Disaster Loans (EIDL),-Employee Retention Credits and an increase in the allowable business interest deduction limit, to name a few. But what about the
Update as of June 3, 2020: Small businesses may soon find more flexibility in the Paycheck Protection Program (PPP) as a bill passed the House on Thursday that would extend the time in which companies need to spend funds and alter the rule that they must pay 75% of the funds on the payroll for
What Can You Spend Your PPP Forgivable Loan on? Read More »
Payroll Protection Plan – Forgivable Loan That You Should Get Many small business owners who have been approved for Paycheck Protection Program loans (“PPP”) are realizing that the loan isn’t as forgivable as they’d hoped. The amount a small business can qualify to have forgiven must primarily be payroll costs. The SBA’s rule-making has stated
How to get your PPP Loans Forgivable? Read More »
Restricted Stock Units (RSUs) are a common form of equity compensation, especially in the tech and startup sectors. If you’re based in California—particularly in the Bay Area—RSUs may play a significant role in your overall compensation package. At Flex Tax and Consulting Group, we regularly advise clients in San Francisco, Castro Valley, and throughout the
Understanding RSUs: What You Need to Know About Restricted Stock Units Read More »
The IRS provides you with a choice of two methods for claiming business mileage on your taxes. You can use the actual expenses method to calculate your mileage deduction, which requires adding up all of the money spent operating your vehicle and multiplying it by the percentage that you used it for business. Or, you
How to Calculate Mileage Deductions on Your Tax Return Read More »
On Friday, the IRS announced the opening of its Free File program, which provides free electronic filing to qualifying taxpayers, generally those who earned $66,000 or less last year. The program is opening before the regular filing season, which will begin Jan. 28, and is available only through the IRS website at irs.gov/freefile. After they access
IRS announces Free File launch Read More »
Responding to concerns that some partnerships required to report capital account information may be unable to comply, the IRS is postponing the requirement to report partners’ shares of partnership capital on the tax-basis method for 2019 (for partnership tax years beginning in calendar 2019) until 2020 (for partnership tax years that begin on or after
Partnership capital reporting requirements postponed until 2020 Read More »
Tenant allowances are payments a lessor makes to a lessee to provide the tenant with funds to prepare the rented space for its intended business use. Generally, the tenant treats a tenant allowance received from the landlord as an ordinary income. Normally, the tenant would recognize income when the allowance received and depreciate the assets
Tax treatment of tenant allowances Read More »
IRS Tax Treatment of Cryptocurrency “hard forks”and “airdrops” A “hard fork” of a cryptocurrency owned by a taxpayer does not result in gross income for a taxpayer. If the taxpayer receives no units of the new cryptocurrency. However, taxpayers receiving an “airdrop” of units of a new cryptocurrency after a hard fork have ordinary
IRS clarifies the tax treatment of cryptocurrency Read More »
The IRS issued interim guidance on how eligible small businesses can take advantage of a new provision that allows them to apply part or all of their Sec. 41 research tax credit against their payroll tax liability instead of their income tax liability. Before 2016, taxpayers could only take the research credit against their income
How small businesses can apply the research credit to payroll taxes Read More »
Certain individuals who expatriate from the United States may obtain relief from the exit tax of Sec. 877A and other outstanding tax liabilities, under procedures, the IRS outlined Friday on its website and announced in News Release IR-2019-151. The relief applies to individuals who relinquished or will relinquish their U.S. citizenship after March 18, 2010, and meet several
IRS offers expatriate tax relief Read More »
In T.D. 9878, the IRS finalized proposed regulations (REG-150992-13) it had issued in 2016, without changes, and removed temporary regulations (T.D. 9789) published in connection with the proposed regulations. Under the final regulations, as under the temporary and proposed regulations, taxpayers that want to elect to deduct a disaster loss in the tax year preceding
Taxpayers may deduct casualty losses in prior years Read More »
The IRS on Wednesday issued the 2020 annual inflation adjustments for many tax provisions as well as the 2020 tax rate tables for individuals and estates and trusts (Rev. Proc. 2019-44). These adjusted amounts will used to prepare the tax year 2020 returns in 2021. Many amounts will increase in inflation in 2020. The standard
IRS posts 2020 inflation adjustments and tax tables Read More »
The IRS on Tuesday updated the rules for using per-diem rates to substantiate the amount of ordinary and necessary business expenses paid or incurred. While traveling away from home in light of changes enacted by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97 (Rev. Proc. 2019-48). The revenue procedure supersedes and
Per-diem method clarified in light of TCJA changes Read More »
