Penalty Free Retirement Account Withdrawals

For anyone who has a child, they know sometimes the pain doesn’t end at the point of delivery.  Don’t get me wrong. Children are a blessing, but with them come sleepless nights, diaper changes and yes, financial pressures. A study by Health Affairs found that for the average new mother with insurance who gave birth …

Keep Reading

SECURE Act results in tax credit opportunities for employers

With the recent passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act into law, several tax credits originally set to expire at the end of 2019 have been extended through tax year 2020. Business owners should be aware of these potential tax saving opportunities, as the resulting dollar-for-dollar tax credits can be …

Keep Reading

It’s Back – Deduction for Mortgage Insurance Premiums

Not specifically related to the sweeping Tax Cuts and Jobs Act (TCJA) that took effect for the 2018 tax year, the Schedule A deduction for mortgage insurance premiums (MIP.PMI) expired at the end of 2017.  However, in the evening of December 20, 2019 President Trump signed the Further Consolidated Appropriations Act, bringing the deduction back. …

Keep Reading

The home office deduction for small business owners

Are you a small business owner who works from home? If you are a self-employed individual who utilizes a portion of your home regularly and exclusively for business activity, and that area is your principal place of business, the home office deduction is available to you in 2019. Can you write that off? Find out! …

Keep Reading

California’s New Definition of an Employee

California’s new law (Labor Code section 2750.3) creates a big change on who should be paid as an independent contractor and who should be paid as an employee. Under the new law, a worker can only be considered an independent contractor if the payor can prove they meet the following three requirements: The worker must …

Keep Reading

California revises Wayfair sales tax thresholds

The U.S. Supreme Court in 2018 issued a ruling (South Dakota v. Wayfair) which opened the door for states to impose sales tax on internet retailers who sell into a state. Because of this ruling, many states have begun passing laws and issuing regulations based on the Supreme Court decision. California, due to its large …

Keep Reading

Have you been billed for tax research?

How long is the tax code? Out of curiosity, a download of the current version (through November 29, 2018) is 6,499 pages. While it’s not all code provisions, that’s still too many! Then, there’s accompanying regulations that explain the code. In addition, the IRS publishes other guidance and court decisions to interpret various provisions. Even …

Keep Reading

Tax reform: blended corporate tax rate

By now, we have all heard of the new Tax Cuts and Jobs Act (TCJA) signed by President Trump in December 2017 to take effect on January 1, 2018. I am sure you heard that individuals and corporations will get tax cuts through reduced tax rates, among other deductions available. In this blog, I will …

Keep Reading