203) 291-9093 | cecil@nazarethcpas.com
========================================
IMPORTANT REMINDERS
1. Start your 2021 tax planning now. Save time. Upload your 2020 tax documents to our client portal today.
2. Increase your charitable contributions. Give as generously as you can. You can deduct $300 even if you do not itemize. Bottom line: We are more fortunate than most people. This year, I decided to triple my annual contributions.
“Much more is expected from those who have been given a lot.” -- John F. Kennedy
3. Payroll Protection Plan 1 Loans & Forgiveness
Small business owners. There's a good chance your loan can be forgiven if under $50,000. Just plan for 90-day turnaround. To apply for forgiveness:
b. Loan is NOT taxable.
c. Yes, expenses paid via loan can often be deducted.
d. All PPP-1 loan recipients can apply for forgiveness
or convert to low-interest loans.
Deadline to apply: August 31, 2021.
4. 2020 Tax Filing Deadlines
- March 15, 2021 for all Pass-Through Entities.
- April 15, 2021 for C Corps and individuals.
You must pay taxes on time, but you can seek an extension to file six months from the due date.
5. Payroll Protection Plan 2 Loans
Introduced January 11, 2021
Deadline to apply is March 31, 2021
Requirements:
a. Only available for PPP-1 recipients.
b. Must show a 2020 quarterly revenue drop of 25% vs. any comparable quarter in 2019.
c. Must justify "economic necessity" for a second PPP loan.
6. Taxpayers get more time to invest in Qualified Opportunity Funds (QOFs).
Under the Opportunity Zone program, taxpayers can defer capital gains from the sale of business or personal property by investing the proceeds in QOFs to help development of struggling communities.
You generally have 180 days from the date of sale of a capital asset they own to defer gains by investing proceeds in a QOF. IRS now says that the deadline to reinvestment gains in a QOF normally due April 1, 2020, through March 30, 2021, are delayed to March 31.
========================================
IRS Audits on the Rise
- Stepped up audits for those who report high Schedule C losses.
- Taxpayers who don't report foreign income or FBAR compliance. Ref. recent Brockman case.
- Anyone dealing in crypto-currency.
-
Real estate losses are passive losses and are not deductible subject to some thresholds.
- Commingling of business and personal expenses.
- Non-filers.
=========================================
Now Is a Great Time to Refinance
- Mortgage rates are at historic lows.
- Lower your monthly payments; increase cash flow.
=========================================
Security - Phone scams. NEVER respond to phone calls or emails from the IRS. The IRS will only send you written communication by postal mail. Never email documents containing your Social Security numbers.
=======================================
Why You Want an Independent Review of Your Company's Financial Statements
Banks, lenders, acquirers and auditors look more favorably at your financials if they’re independently reviewed or audited and you’ll likely receive better rates and terms.
Contact us for assistance with your personal and business financial statements.
We offer three levels of service:
1) Compilation. Simple compilation of financial statements.
2) Review. More analytical procedures performed.
3) International Tax Planning. (India-US specialty).
===============================
