Does your business receive large amounts of cash or cash equivalents such as bank checks? You may be required to submit forms to the IRS to report these transactions. Each person engaged in a trade or business who receives more than $10,000 in cash in one transaction, or in two or more related transactions, must
Business Archives - Page 8 of 14 - Crawford Ellenbogen
Aug 26, 2020
File cash transaction reports for your business — on paper or electronically
- By Joan Ellenbogen
- Business
- 0 Comments
Read More
Aug 12, 2020
Even if no money changes hands, bartering is a taxable transaction
- By Victor Dozzi
- Business
- 0 Comments
During the COVID-19 crisis, many small businesses are strapped for cash. They may find it beneficial to barter for goods and services instead of paying cash for them. If your business engages in bartering, remember that the fair market value of goods you receive is taxable income. And if you exchange services with another business,
Aug 5, 2020
Businesses: Get ready for the new Form 1099-NEC
- By Joan Ellenbogen
- Business
- 0 Comments
There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600
Aug 4, 2020
Steer clear of the Trust Fund Recovery Penalty
- By Victor Dozzi
- Business
- 0 Comments
If you own or manage a business with employees, you may be at risk for a severe tax penalty. It’s called the “Trust Fund Recovery Penalty” because it applies to the Social Security and income taxes required to be withheld by a business from employees’ wages. Because the taxes are considered government property, the employer
Jul 9, 2020
Launching a business? How to treat start-up expenses on your tax return
- By Joan Ellenbogen
- Business
- 0 Comments
While the COVID-19 crisis has devastated many businesses, the pandemic has also created opportunities to launch new businesses. For example, some businesses are being started online to provide products and services to people staying at home. Entrepreneurs often don’t know that many start-up expenses can’t be currently deducted. Some probably must be amortized over time.
Jul 7, 2020
Good records are the key to tax deductions and trouble-free IRS audits
- By Joan Ellenbogen
- Business
- 0 Comments
If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re entitled. And you want to make sure you
Jul 1, 2020
Rioting damage at your business? You may be able to claim casualty loss deductions
- By Joan Ellenbogen
- Business
- 0 Comments
The recent riots around the country have resulted in many storefronts, office buildings and business properties being destroyed. In the case of stores or other businesses with inventory, some of these businesses lost products after looters ransacked their property. Windows were smashed, property was vandalized, and some buildings were burned to the ground. This damage
Jun 25, 2020
IRS releases 2021 amounts for Health Savings Accounts
- By Joan Ellenbogen
- Business
- 0 Comments
The IRS recently released the 2021 inflation-adjusted amounts for Health Savings Accounts (HSAs). For calendar year 2021, the annual contribution limitation for an individual with self-only coverage under a HDHP is $3,600. For an individual with family coverage, the amount is $7,200. This is up from $3,550 and $7,100, respectively, for 2020. For calendar year 2021, an
Jun 16, 2020
The CARES Act liberalizes net operating losses
- By Joan Ellenbogen
- Business
- 0 Comments
The CARES Act includes favorable changes to the rules for deducting net operating losses (NOLs) to provide businesses with relief from the novel coronavirus (COVID-19) crisis. It permanently eases the taxable income limitation on deductions. For tax years beginning before 2021, the CARES Act removes a taxable income limitation on deductions for prior-year NOLs carried
Jun 3, 2020
Fortunate enough to get a PPP loan? Forgiven expenses aren’t deductible
- By Joan Ellenbogen
- Business
- 0 Comments
The IRS has issued guidance clarifying that certain deductions aren’t allowed if a business has received a Paycheck Protection Program (PPP) loan. Specifically, an expense isn’t deductible if both: The payment of the expense results in forgiveness of a loan made under the PPP, and The income associated with the forgiveness is excluded from gross