Is Forgiven PPP Classified as Non-Taxable Income? It was unclear if loans that were forgiven or not were still taxable when information about PPP came out. Later on, federal information was issued that helped classify this concern. It turns out that the new regulation brings up that forgiven PPP loans won’t be taxed as additional expenses. Also, deductions can also include expenses. This law was only established on a federal level and other states are still in the process of confirming their position. Currently, 29 states are noting this law and are making sure forgiven PPP loans aren’t taxed through
For the last year and a half, we have been making adjustments to the way we work. The pandemic has made working from home more common lately so it is important to capitalize on your home office deduction. Calculating Methods To start, make sure to find a space in your home that is exclusively dedicated to your working environment. After you have your dedicated space setup, you can calculate a “simplified” home office deduction. You can start off with two different methods. The first method is on the easier side where you do simple multiplication. Gather the square feet of
Just because you don’t pay sales tax doesn’t mean that you aren’t responsible for paying it. Let’s Define “Use Tax” Use tax is when you don’t pay tax on goods, but the state you live in requires that you pay sales tax on all goods. It is required to pay sales tax on all goods if you live in a place where sales tax is mandatory. It is still required even if a vendor doesn’t charge it. State income tax return is the most efficient way to pay and report use tax. The California’s sales tax agency states, “if sales
Twenty-five states are increasing their minimum wage rates in 2021. They are Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, South Dakota, Vermont, Virginia, and Washington.
When it comes to deploying capital, conventional wisdom favors reinvesting in growth that generates a return in excess of capital costs, even though many companies chose to return capital to shareholders.
Do you need basic income and expense tracking? You may not even need a bookkeeper. Many banks have developed very basic expense tracking and spending reports.
We know times are crazy, but there are a lot of important updates for CA sales tax you need to know. Please read highlights from CDTFA below. Relief and Extensions for Filing Returns For all but the largest taxpayers, first quarter 2020 returns were extended and are now due July 31, 2020. For all but the largest taxpayers, monthly returns for March, April, and May 2020 were also extended by three months. Tax returns for the second quarter, running from April through June 2020, remain due on July 31, 2020. For sales and use taxpayers required to make monthly prepayments
Working moms and dads generally spend a significant amount of money on child care while they work/run their business. Why not be able to save additional money while trying to do both? Here are 5 reasons to hire your child! Is your child able to dust, file, check inventory, model your products, etc.? If your answer is yes, you might be able to save money by hiring your child. You can instill fundamental work ethics and spend more time with those you love most in the world. It is a win-win! 1. You can pay less in taxes. Generally speaking,
Logistis’ #1 choice for retierment planing is Guideline. Guideline is on a mission to help every small business offer a 401(k). And to help participants create a retirement they can look forward to. Guideline syncs with Gusto to take care of plan administration, and offers low-cost mutual funds. And unlike many 401(k) providers, they don’t charge any additional fees on investments. Learn more about Guideline 401(k) plans here. As is such, we are reposting this Guideline atricle by NICOLLE WILLSON, J.D., CFP®, C(K)P® 24.JUN.2020. “When you decide to invest your money, you are balancing how much risk you want to
SBA Finally Clarifies PPP Loan Forgiveness Rules: Full Forgiveness For Self-Employed Borrowers We are reposting this Forbes atricle by Brian Thompson becasue he lays it out beautifuly. “If you’re a freelancer or other self-employed person wondering if you’ll get forgiveness for loans taken out under the Paycheck Protection Program (PPP), yesterday brought good news. The SBA filed its 19th Interim Final Rule (IFR), scheduled to be published on Friday June 19th, focusing on revisions made from Paycheck Protection Program Flexibility Act (Flexibility Act) signed into law on June 5th. The unpublished version of the update ensures full forgiveness for self-employed, freelancers and independent
Lowdown On Qualified Business Income Deduction (QBID) Breif Summary of Qualified Business Income Deduction (QBID) Section 199A deduction (aka Qualified Business Income Deduction -or- QBID for short) is a significant tax break for small business owners that was enacted in 2017. QBID is basically a 20% deduction of net qualified business income. Here is an example of how QBID is calculated FOR EXAMPLE: if you make $100,000 GROSS, the deduction is $20,000, which is then multiplied by your marginal tax rate of 24% which equals $4,800 back in your pocket. (Straightforward?! Well there is more to it than that…) If
PPPFA Updates H.R.7010 – Paycheck Protection Program Flexibility Act of 2020Here are some highlights 1. Extension of “covered period” is now 24 weeks from the date of the loan’s origination, or December 31, 2020, whichever comes earlier. *Optional extension2. You can spend up to 40% of your proceeds on certain non-payroll costs, BUT if you do spend this 40% on non-payroll you must spend 60% on payroll in order to be eligible for full forgiveness.3. You’ll have longer to replace FTEs/restore salaries. As long as the FTEs or salary/hourly wage are restored any time prior to the end of 2020,
Part of our job as accountants is to manage cash flow and make sure the best system of process (SOP’s) are in place to support a firms revenue growth. When a new digital creative agencies comes to us, one of the biggest pain points they have is managing ad spends. While there is not a “one shoe fits all” solution, there are some critical practices that must be followed to ensure successful and profitable outcomes. Managing Ad Spends Starts with the SOW. The first step to running a successful agency is learning how to develop a solid + comprehensive Schedule
Have you been wondering if you really need a full-time “in-house” accounting staff? Perhaps it’s time to ask yourself if “in-house” is right for you. Here is why you can reimagin your firm while having expert insight, freedom and the ability to save more money. 1. Expert Insight You don’t have to reinvent the wheel. An outsourced firm can bring extensive industry knowledge which can help guide your firm to success. The benefits of having a team that works with multiple companies can be the key to unlocking some of the bottlenecks in your business. Firms of the past often
This is why we will survive this crisis! Heart-to-Heart This is my first entry for a blog series, and as my grandpa used to day, I’m coming at your from the heart. This crisis has shook my world. I have only been able to recall one other recession in my adult life, and in all honesty I was insulated. At the time of the last crisis, I was fortunate to work for a private equity firm whose investments were not as affected as the rest of the world. While I saw the tragic stories in the news, I did not
Click here to copy the spreadsheet we are using for our clients to calculate forgiveness. Also, here is the AICPA Guidelines. Disclaimer: This sheet is for reference only and should not be relied upon as tax, legal, or lending advice. The following is meant to be used as a preliminary tool to estimate the potential forgiveness of the PPP loan proceeds and is not meant to be used as the final calculation of loan forgiveness. We anticipate additional guidance and definitions to be forthcoming over the next few weeks and we will update accordingly. Additional guidance may have a significant
We have been listening and we are taking action! We have worked with other accountants, investors, coaches and more to create this “playbook.” The most important thing a firm can do right now is monitor cash, make a plan, and think ahead. Download your copy of this guide and start today!
Logistis‘ wonderful CPA, Jeremy Niswonger to lay it down for you! We are living during a period of trying, uncertain times. The current outbreak of the Coronavirus disease (COVID-19), has had a significant impact on the way we go about our daily lives. From how we work, to how we live, to how we relax, no aspect of our lives has gone untouched. With a potential recession on the horizon and so much unknown about how we will move forward as a society, what does that mean for your business? Now more than ever, you will want to turn to your financial advisor
Here is how you can save money by hiring childcare. Let’s face it, child care is expensive! So why not take advantage of your options to get the most out of your child care costs. Below we discuss some quick ways you can earn tax savings on your costs of childcare. Here are some MUSTs! Typically have to be a single filer or MFJ (married filing jointly) Your reason for childcare is “to assure the individual’s (your child) well-being and protection” Total allowed expenses for one child or qualifying individual is up to $3,000 Total allowed expenses for more than
With the IRS’s 1099 deadline behind us, here is what you should be doing to ensure filling goes smoothly next year. As many designers learned in the closing of 2018, it is challenging to track down contractors from previous work and request a W9. Our advice is to keep up throughout the year! In fact, hold your contractors’ final paycheck hostage until they submit their W9. I know this sounds tedious but you will thank us when fourth quarter rolls around and you can enjoy the holidays with your family instead of worrying about spending your break hunting down all