Hiring Your Children in the Family Business Can Result in Big Tax Breaks

With jobs at a premium during the COVID-19 pandemic, you might consider hiring your children to help out in your business. Rather than helping to support your children with your after-tax dollars, you can instead hire them and pay them with tax-deductible dollars. Of course, the employment must be legitimate and the pay commensurate with the hours and the job worked.

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Guidance Issued on Deferral of Payroll Taxes

For the period between September 1 and December 31, 2020, employers can opt out of withholding the 6.2% payroll tax that is the employee’s share of Social Security taxes. The deferral is only available to employees that earn less than the equivalent of an annual salary of $104,000. If the employer chooses to defer collection, the taxes would then be due no later than April 30, 2021.

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What President Trump’s Executive Orders Mean for You

We are still waiting for the dust to settle on President Trump’s executive orders to understand what they mean for taxpayers and business owners. There is a lot of talk about legal challenges and how Congress may react. In the meantime, we wanted to share with you what we do know and how it may or may not impact you.

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Do You Know the Gain on Home Sale Rules?

The rules surrounding the sale of one’s principal residence have changed over the years. It used to be that you could simply rollover your gain on a tax-free basis as long as you reinvested the proceeds into a new principal residence. However, those gain on home sale rules have since been eliminated and replaced with a principal residence exclusion.

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5 Strategies for High-Income Taxpayers to Consider in Preparation for Potential Tax Increases

Have you considered that potential tax increases might be on the horizon? Regardless of who wins the elections this November, with rising deficits at the state and federal levels, government spending skyrocketing, and revenue dropping due to the COVID-19 pandemic, we can assume that taxes will go up in coming years. We can also assume that the likely focus for generating this additional tax revenue is the wealthy.

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Unique IRA Opportunities for 2020 as a Result of COVID-19

As hard as it has been financially for many individuals, the year has provided some unique tax opportunities for those who have traditional IRA accounts. These range from converting traditional IRAs to Roth IRAs, retirees making larger-than-normal IRA withdrawals and the decision whether to take advantage of the required minimum distribution suspension for 2020.

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Why It’s Important to Keep and File IRS Notice 1444

The IRS is mailing all recipients of economic impact payments, commonly referred to as stimulus checks, a copy of Notice 1444 that provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received.

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Are You Leveraging the Biodiesel and Alternative Fuels Tax Credit?

Many companies use alternative fuels in their operations, such as utilizing propane for their forklifts, but they may not be aware of the Biodiesel and Alternative Fuels tax credit. While the credit expired in 2017, Congress resurrected it in December 2019 and made it retroactive for 2018 in Notice 2020-8. The current legislation has this tax credit set to expire after 12/31/2020, unless Congress extends the date again.

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The IRS Provides Additional 2020 RMD Rollover Relief

Normally, RMDs are not allowed to be rolled over, but because the CARES Act waives the requirement to take a 2020 distribution, these distributions are not treated as RMDs for 2020, rather are considered distributions that are eligible to be rolled over.

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