28 Mar 2022
0

Recent California Bills Up for Vote are Beyond Belief

Roger Rossmeisl, CPA
Current Events
Recent California Bills Up for Vote are Beyond Belief

As  posted to the Peak Prosperity YouTube Channel on 3/23/2022 (Run Time: 52 min, 22 sec) Paraphrased from Creator-Provided Description California is facing a rash of exceptionally dangerous and poor legislation that is truly beyond belief.  The only possible way to understand it compassionately is to see those elected officials proposing it as being swept up in Mass Psychosis. But compassion is not the same thing as condoning, let alone approving of, such recklessly indifferent ignorance.  In this video, Chris Martenson discusses the horrendous slate of California bills (on or about 3/30/2022) with Laura Sextro, CEO and COO of the Unity Project. If California passes these laws, other states could well be next. This is a battle for the future and soul of our country, individual rights, parental...

28 Mar 2022
0

Don’t Lose Your Business’s IT Assets

Roger Rossmeisl, CPA
Fraud Briefs
Dont Lose Your Businessess IT Assets

Keeping track of every IT asset — particularly as remote work has become common — is essential if your company wants to limit financial losses and fraud risk. According to some estimates, most remote employees use at least two employer-assigned devices, and a smaller percentage use three or more. In general, the more devices in use, the greater the potential for loss or theft. But you can keep tabs on hardware such as desktops, laptops, mobile phones, tablets and the software you’ve purchased or developed to operate them, with IT asset tracking. Following is a three-step guide. (1) List Your Assets The first step involves developing a list of the IT assets you need to track. Although third-party software can help simplify this task (especially if the software...

28 Mar 2022
0

Why What an S Corp Shareholder Receives and Reports is Different

Roger Rossmeisl, CPA
Small Business Tax Briefs
Why What an S Corp Shareholder Receives and Reports is Different

You may have wondered why, in a given year, you may be taxed on more S corporation income than was distributed to you from the S corporation in which you are a shareholder. The answers lies in the way S corporations and their shareholders are taxed. But before explaining those rules, be assured you that when you are taxed on undistributed income, you won't be taxed again if and when the income ultimately is paid to you. Unlike a regular or C corporation, an S corporation generally isn't subject to income tax (California does charge a 1.5% entity-level tax). Instead, each shareholder is taxed on the corporation's earnings, whether or not the earnings are distributed. Similarly, if an S corporation has a loss, the loss is passed...

28 Feb 2022
0

SB 113 Provides Additional Relief from SALT Deduction Limits

Roger Rossmeisl, CPA
Automotive, Individual Tax Briefs, Small Business Tax Briefs
SB 113 Provides Additional Relief from SALT Deduction Limits

Back in 2017, the Tax Cuts and Jobs Act was signed into law which instituted a cap on the amount of state and local taxes (SALT) that individuals could report as Itemized Deductions on Schedule A.  Starting with the 2018 tax year, the maximum SALT deduction available was $10,000. Previously, there was no limit.  Since then, roughly 20 states have come up with workarounds intended to negate, or at least mitigate the effect of the SALT limitation. In 2021 California passed AB 150, which provides that, in the taxable years 2021-2025, a so-called "qualified entity" (a S corporation, partnership, or LLC taxed as a partnership or S corporation) to make an election to pay a new pass-through entity (PTE) elective tax equal to 9.3% of its...

23 Feb 2022
0

Are You Ready for the 2021 Gift Tax Return Deadline?

Roger Rossmeisl, CPA
Individual Tax Briefs
Are you Ready for the 2021 Gift Tax Return Deadline?

If you made large gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2021 gift tax return. And in some cases, even if it’s not required to file one, it may be beneficial to do so anyway. Who must file? The annual gift tax exclusion has increased in 2022 to $16,000 but was $15,000 for 2021. Generally, you must file a gift tax return for 2021 if, during the tax year, you made gifts: That exceeded the $15,000-per-recipient gift tax annual exclusion for 2021 (other than to your U.S. citizen spouse), That you wish to split with your spouse to take advantage of your combined $30,000 annual exclusion for 2021, That exceeded the $159,000 annual exclusion...

23 Feb 2022
0

Can You Deduct the Costs of a Spouse on a Business Trip?

Roger Rossmeisl, CPA
Small Business Tax Briefs
Can Your Deduct the Costs of a Spouse on a Business Trip?

If you own your own company and travel for business, you may wonder whether you can deduct the costs of having your spouse accompany you on trips. The rules for deducting a spouse’s travel costs are very restrictive. First of all, to qualify, your spouse must be your employee. This means you can’t deduct the travel costs of a spouse, even if his or her presence has a bona fide business purpose, unless the spouse is a bona fide employee of your business. This requirement prevents tax deductibility in most cases.  A spouse-employee If your spouse is your employee, then you can deduct his or her travel costs if his or her presence on the trip serves a bona fide business purpose. Merely having your spouse perform some...

23 Feb 2022
0

Valuing a Business for Divorce

Roger Rossmeisl, CPA
Valuation Briefs
Valuing a Business for Divorce

When divorcing spouses own a private business interest, it complicates the settlement process. The value of a business isn’t necessarily as straightforward as the values of other marital assets. And it’s often impractical to sell the business and split the proceeds, because there may be other owners who aren’t interested in selling and it takes time to sell a business. Plus, the business’s value might be partially excluded from the marital estate, depending on state law, legal precedent and prenuptial agreements between the spouses. Fortunately, a business valuation professional can help you sort through the issues. Tangible vs. intangible value The value of a business can be broken down into two pieces. First up are tangible (or hard) assets, which include such items as cash, receivables and equipment....

23 Feb 2022
0

Why Would Married Couples File Separate Tax Returns?

Roger Rossmeisl, CPA
Individual Tax Briefs
Why Would Married Couples File Separate Tax Returns?

If you’re married, you may wonder whether you should file joint or separate tax returns. The answer depends on your individual tax situation. In general, it depends on which filing status results in the lowest tax. But keep in mind that, if you and your spouse file a joint return, each of you is “jointly and severally” liable for the tax on your combined income. And you’re both equally liable for any additional tax the IRS assesses, plus interest and most penalties. That means that the IRS can come after either of you to collect the full amount. Although there are “innocent spouse” provisions in the law that may offer relief, they have limitations. Therefore, even if a joint return results in less tax, you may want...

23 Feb 2022
0

Withdrawals from your Closely-Held Corporation that Aren’t Taxed as Dividends

Roger Rossmeisl, CPA
Small Business Tax Briefs
Withdrawals from your Closely-Helf Corporation that arent Taxed as Dividends

Do you want to withdraw cash from your closely held corporation at a minimum tax cost? The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits.” It’s also not deductible by the corporation. Five alternatives Fortunately, there are several alternative methods that may allow you to withdraw cash from a corporation while avoiding dividend treatment. Here are five areas where you may want to take action: 1. Capital repayments. To the extent that you’ve capitalized the corporation with debt, including amounts you’ve advanced to the business, the corporation can repay the debt without the repayment being treated as a dividend. Additionally, interest paid on the debt can be...

23 Feb 2022
0

Protecting your Company from Cryptocurrency Fraud

Roger Rossmeisl, CPA
Fraud Briefs
Protecting your Company from Cryptocurrency Fraud

According to blockchain data company Chainalysis, cryptocurrency transactions associated with illegal activity topped $14 billion in 2021. That’s almost double 2020 numbers — and the momentum shows no signs of slowing. In addition to outright cryptocurrency theft, these crimes include investment fraud and ransomware scams that affect businesses. Yet cryptocurrency offers several advantages to entrepreneurs and established companies, including instant, low-fee transactions and access to new sources of capital. If you use cryptocurrency — or want to — understanding the risks can help prevent financial losses. The basics Cryptocurrencies use blockchain technology, a shared electronic ledger that records and stores transactions in the nodes of a computer network. Most cryptocurrencies use public blockchains, making it possible for anyone to see a digital wallet’s balance and transactions, including criminals....

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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