28 Sep 2021
0

Don’t Let Vendor Fraud Infiltrate Your Organization

Roger Rossmeisl, CPA
Fraud Briefs
Dont Let Vendor Fraud Infiltrate Your Organization

Vendor fraud can be costly — particularly when several perpetrators are involved. The median loss of a fraud scheme conducted by two individuals is $200,000, according to the Association of Certified Fraud Examiners. Losses rise precipitously to more than $500,000 when four or more people commit the fraud. These schemes typically involve the collusion of employees with outside parties or a conspiracy between suppliers. But you can help prevent vendor fraud in your business by familiarizing yourself with the schemes. Types of schemes Vendor fraud can take one of several forms. Price fixing is an agreement among competitors to set the same price for goods or services. It also refers to competitors jointly establishing a price range or minimum price. Such agreements violate the Sherman Antitrust Act,...

27 Sep 2021
0

Tax Depreciation Rules for Business Automobiles

Roger Rossmeisl, CPA
Small Business Tax Briefs
Tax Depreciatiation Rules for Business Automobiles

If you use an automobile in your trade or business, you may wonder how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle. Cents-per-mile vs. actual expenses First, note that separate depreciation calculations for a passenger auto only come into play if you choose to use the actual expense method to calculate deductions. If, instead, you use the standard mileage rate (56 cents per business mile driven for 2021), a depreciation allowance is built into the rate. If you use the actual expense method to determine your allowable deductions for a passenger auto, you must make a separate depreciation...

27 Sep 2021
0

Will you Owe Tax on Profits from Selling Your Personal Residence?

Roger Rossmeisl, CPA
Individual Tax Briefs
Will Your Owe Tax on Profits from Selling Your Personal Residence?

Many homeowners across the country have seen their home values increase recently. According to the National Association of Realtors, the median price of homes sold in July of 2021 rose 17.8% over July of 2020. The median home price was: $411,200 in the Northeast, $275,300 in the Midwest, $305,200 in the South, and $508,300 in the West.   Be aware of the tax implications if you’re selling your home or you sold one in 2021. You may owe capital gains tax and net investment income tax (NIIT). Gain exclusion If you’re selling your principal residence, and meet certain requirements, you can exclude from tax up to $250,000 ($500,000 for joint filers) of gain. To qualify for the exclusion, you must meet these tests: You must have owned the property for...

27 Sep 2021
0

No Disaster Scammer is Safe from the NCDF

Roger Rossmeisl, CPA
Fraud Briefs
No DisasterScammer is Safe from the NCDF

What do COVID-19, major hurricanes and West Coast wildfires have in common? All three have attracted scam artists, who have bilked disaster victims, charitable donors, insurance companies and government agencies out of billions of dollars. Also, all of these disasters — and the criminals who take advantage of them — are the focus of The National Center for Disaster Fraud (NCDF). Let’s take a look at what this partnership between the U.S. Justice Department and various law enforcement and regulatory agencies does to investigate and prevent fraud. Investigate and prevent The NCDF was established in 2005 after Hurricane Katrina to combat the massive fraud schemes that emerged as financial aid poured into the Gulf region. The agency now coordinates investigations into all kinds of natural and manmade...

26 Sep 2021
0

Which are the Most Private Browsers?

Roger Rossmeisl, CPA
Technology
Which are the Most Private Browsers?

As posted to the Naomi Brockwell YouTube Channel on 4/30/21 (Run Time: 8 min, 13 sec) In this informative video from her Privacy Series, Naomi Brockwell compares the most popular browser options available to help you make an informed decision as to which will work best for your personal situation. With web browsers being your interface to the Internet, it is not surprising that they become the target of companies or hackers who want to collect information about you. In addition to websites being able to track you, browsers themselves can also send back information about you to the browser’s parent company for them to monetize. The major browsers discussed in this clip are Chrome, Safari, Mozilla Firefox, Tor Browser, Microsoft Edge, and Brave. (This is Blog Post #1096) Naomi...

26 Sep 2021
0

California Main Street Small Business Tax Credit II Begins 11/1/21

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
California Main Street Small Business Tax Credit II Begins 11/1/21

California Assembly Bill No. 50 (AB-50) established the California Main Street Small Business Tax Credit II, which will provide COVID-19 financial relief to qualified small business employers. Overview Beginning 11/1/21, and ending 11/30/21, the California Department of Tax and Fee Administration (CDTFA) will be accepting applications through their online reservation system for qualified small business employers to reserve $1,000 per net increase in qualified employees, not to exceed $150,000.  Tentative credit reservation amounts will generally be reduced by credit amounts reserved or received under the first Main St. Small Business Tax Credit.  The credits are reserved on a first-come, first-served basis.  Qualified small businesses will be able to offset either their income taxes or their sales and use taxes with the credit when filing their returns. Qualifications This credit...

22 Sep 2021
0

3 Ways Fraud Experts Use Data Analytics

Roger Rossmeisl, CPA
Fraud Briefs
3 Ways Fraud Experts Use Data Analytics

Forensic accountants have long used technological tools to uncover fraud schemes. But recent advances in “big data” have provided even better, more efficient techniques for identifying suspicious activities and dishonest employees. These are three common ways fraud experts use data analytics: 1. Association analysis This method can help identify suspicious relationships by quantifying the odds of a combination of data points occurring together. In other words, it calculates the likelihood that if one data point occurs, another will, too. If data point combination occurs at an atypical rate, a red flag goes up. For example, association analysis might find that a certain worker or manager tends to be on duty when inventory theft occurs. 2. Outlier analysis Outliers are data points outside the norm for a given data set. In...

17 Sep 2021
0

Planning for Year-End Gifts with the Gift Tax Annual Exclusion

Roger Rossmeisl, CPA
Individual Tax Briefs
Planning for Year-End Gifts with the Gift Tax Annual Exclusion

As we approach the holidays and the end of the year, many people may want to make gifts of cash or stock to their loved ones. By properly using the annual exclusion, gifts to family members and loved ones can reduce the size of your taxable estate, within generous limits, without triggering any estate or gift tax. The exclusion amount for 2021 is $15,000. The exclusion covers gifts you make to each recipient each year. Therefore, a taxpayer with three children can transfer $45,000 to the children every year free of federal gift taxes. If the only gifts made during a year are excluded in this fashion, there’s no need to file a federal gift tax return. If annual gifts exceed $15,000, the exclusion covers the...

17 Sep 2021
0

Claiming a Theft Loss Deduction if Your Business is the Victim of Embezzlement

Roger Rossmeisl, CPA
Small Business Tax Briefs
Claiming a Theft Loss Deduction if Your Business is the Victim of Embezzlement

A business may be able to claim a federal income tax deduction for a theft loss. But does embezzlement count as theft? In most cases it does but you’ll have to substantiate the loss. A recent U.S. Tax Court decision illustrates how that’s sometimes difficult to do. Basic rules for theft losses  The tax code allows a deduction for losses sustained during the taxable year and not compensated by insurance or other means. The term “theft” is broadly defined to include larceny, embezzlement and robbery. In general, a loss is regarded as arising from theft only if there’s a criminal element to the appropriation of a taxpayer’s property. In order to claim a theft loss deduction, a taxpayer must prove: The amount of the loss, The date the...

ROGER ROSSMEISL, CPA

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

(714) 325-0442
roger@khopatel.com

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