The Importance of Basis Tracking

I think most tax professionals would agree, one of the last phrases you want to hear in regards to a tax return is “I think we have basis issues.” Definitely no bueno. But what exactly is basis anyway, and why is it so important? Basis is essentially the amount of money that a taxpayer has …

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Sick leave credit for eligible self-employed Individuals

Prior to the COVID-19 pandemic self-employed people likely felt they were overlooked. The availability of financing under the paycheck protection program and certain tax credits have shone a light of hope for the self-employed individual. A self-employed individual may be eligible to claim a tax credit under the qualified sick leave and qualified family leave …

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COVID-19 relief for struggling taxpayers

You do not need to read this article to know that COVID-19 has made life extremely difficult for a vast number of people. The impact of the pandemic may have made it hard if not impossible at the moment to satisfy your tax obligations. The IRS knows this too and recently announced new collection procedures …

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Net Operating Losses – To Carryback or Carryforward?

Net operating losses – known as NOLs in the tax professional world – are tax attributes generated when losses allocated from business activities exceed a taxpayer’s income for the year. While common sense might tell you that one generally wouldn’t want to be in a net operating loss position, as that would indicate you are …

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Taxing legal marijuana – Arizona Prop 207 sales tax

If you are an Arizona resident, you likely know that this year the legalization of marijuana is on our ballot. Proposition 207 would legalize the possession and use of marijuana for adults 21+, allow growing of marijuana plants, licensing of marijuana retailers and expungement of marijuana related crimes. One aspect of the proposition that many …

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IRS Announces Change in Income Ranges to Determine IRA Eligibility in 2021

Cost-of-living adjustments have been made to the dollar limitations related to retirement and pension plans for 2021. Contributions to traditional IRAs can be deducted by taxpayers meeting certain conditions. If the taxpayer (or their spouse) is covered by a retirement plan at work, the deduction may be affected. The new income phaseout ranges are below: …

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4th quarter 2020 check in

Did anyone else feel like this tax season was never-ending? Now that October 15th has come and gone, it is time to shift gears over to 2020 taxes. For many tax professionals, November and December is the time to sit down (likely virtually this year) with clients. It is a great time to see how …

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California exempts LLCs, LPs, and LLPs from first year $800 minimum fee

When California’s Governor Gavin Newsom signed the 2020 budget on June 29, 2020, the first-year exemption from the $800 minimum tax was finally extended to limited liability companies (LLCs), limited partnerships (LPs) and limited liability partnerships (LLPs). California corporations have been exempted from the $800 minimum tax in the initial year for some time. Don’t …

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Arizona Proposition 208

Have you heard that there is an election going on? And while most of the attention has been focused on the presidential election, there are local elections and initiatives, as well. A very interesting proposition in Arizona is Proposition 208 (Prop 208). This is also sometimes known as the Invest in Education Act. (Or Invest …

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The never ending tax season

Tax season, like the rest of 2020, seems to be going on forever this year. I am not sure if it is actually October 15th or March 229th. I think we can all agree that it has been a very long year. We started out 2020 with a bang, just knowing that it was going …

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