(203) 956-4899 | (203) 291-9093
cecil@nazarethcpas.com
========================================
IMPORTANT REMINDERS
1. Fourth quarter estimates for 2020 are due
Friday, January 15, 2021.
Pay estimated taxes for 2020 as follows:
a. 100% of last year tax (2019).
b. 90% of this year’s tax (2020).
c. 110% if your AGI exceeds $150,000.
2. Start you 2021 tax planning now. Save time. Upload your 2020 tax documents to our client portal today.
3. Payroll Protection Plan 1 Loans
There's a good chance your loan can be forgiven if under $50,000.
b. Loan is NOT taxable.
c. Yes, expenses paid via loan can be deducted.
d. All PPP-1 loan recipients can apply for forgiveness
or convert to low-interest loans.
Deadline: August 31, 2021.
4. Payroll Protection Plan 2 Loans
Introduced January 11, 2021
Requirements:
a. Only available for PPP 1 recipients.
b. Must show revenue drop of 25% in any
quarter in 2020 vs. comparable quarter in 2019
c. Must justify your need for a second PPP loan.
5. 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.
As John F. Kennedy said: “Much more is expected from those who have been given a lot.”
6. Prepay your expenses and defer income whenever you have available cash to do so.
========================================
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.
=========================================
Why Have a Personal Financial Statement?
- Helps your plan your overall wealth.
- Aids in estate planning, gifting and trusts.
=========================================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).
===============================
