27 Dec 2019
0

1099-MISC Reporting Requirements for Small Businesses

Roger Rossmeisl, CPA
Small Business Tax Briefs
1099-MISC Reporting Requirements for Small Businesses

It's 2020, and with it your business may be required to comply with rules to report amounts paid to independent contractors, vendors and others. 1099-MISC reporting requirements may mean you have to send 1099-MISC forms to those whom you pay nonemployee compensation, as well as file copies with the IRS. This task can be time consuming and there are penalties for not complying, so it’s a good idea to begin gathering information early to help ensure smooth filing. Deadline There are many types of 1099 forms. For example, 1099-INT is sent out to report interest income and 1099-B is used to report broker transactions and barter exchanges. Employers must provide a Form 1099-MISC for nonemployee compensation by January 31, 2020, to each noncorporate service provider who was...

27 Dec 2019
0

2020 Q1 Tax Calendar for Businesses

Roger Rossmeisl, CPA
Small Business Tax Briefs
2020 Q1 Tax Calendar

Here's a 2020 Q1 tax calendar with some of the key tax-related deadlines affecting businesses and other employers. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact me to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January 31 File 2019 Forms W-2, “Wage and Tax Statement,” with the Social Security Administration and provide copies to your employees. Provide copies of 2019 Forms 1099-MISC, “Miscellaneous Income,” to recipients of income from your business where required. File 2019 Forms 1099-MISC reporting nonemployee compensation payments in Box 7 with the IRS. File Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return,” for 2019. If your undeposited tax is $500 or less, you...

27 Dec 2019
0

How to Avoid Trust Fund Recovery Penalties

Roger Rossmeisl, CPA
Small Business Tax Briefs
How to Avoid Trust Fund Recovery Penalties

One of the most laborious tasks for small businesses is managing payroll. But it’s critical that you not only withhold the right amount of taxes from employees’ paychecks but also that you pay them over to the federal government on time.  If you willfully fail to do so, you could personally be hit with Trust Fund Recovery Penalties, also known as the 100% penalty. The penalty applies to the Social Security and income taxes required to be withheld by a business from its employees’ wages. Since the taxes are considered property of the government, the employer holds them in “trust” on the government’s behalf until they’re paid over. The reason the penalty is sometimes called the “100% penalty” is because the person liable for the taxes (called...

27 Dec 2019
0

Qualified IRA Charitable Distributions Alternative to Taxable RMDs

Roger Rossmeisl, CPA
Individual Tax Briefs
IRA Charitable Donations

Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity.  They're called Qualified IRA Charitable Distributions (QCDs). IRA distribution basics A popular way to transfer IRA assets to charity is through a tax provision that allows IRA owners who are 70½ or older to give up to $100,000 per year of their IRA distributions to charity. These distributions are called qualified charitable distributions, or QCDs. The money given to charity counts toward the donor’s required minimum distributions (RMDs), but doesn’t increase the donor’s adjusted gross income or generate a tax bill. So while QCDs are exempt from federal income taxes,...

26 Dec 2019
0

Last Chance to Cut Your 2019 Taxes

Roger Rossmeisl, CPA
Small Business Tax Briefs
Last Chance to Cut Your 2019 Taxes

Don’t let the holiday rush keep you from taking some important steps to cut your 2019 taxes. You still have time to execute a few strategies, including: Buying Assets Thinking about purchasing new or used heavy vehicles, heavy equipment, machinery or office equipment in the new year? Buy it and place it in service by December 31, and you can deduct 100% of the cost as bonus depreciation. Although “qualified improvement property” (QIP) — generally, interior improvements to nonresidential real property — doesn’t qualify for bonus depreciation, it’s eligible for §179 immediate expensing. And QIP now includes roofs, HVAC, fire protection systems, alarm systems and security systems placed in service after the building was placed in service. You can deduct as much as $1.02 million for QIP and other...

23 Dec 2019
0

Using Your 401k Plan to Save

Roger Rossmeisl, CPA
Individual Tax Briefs
Using Your 401(k) Plan to Save

You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401k or Roth 401k plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. Because of tax-deferred compounding (tax-free in the case of Roth accounts), boosting contributions sooner rather than later can have a significant impact on the size of your nest egg at retirement. With a 401k, an employee elects to have a certain amount of pay deferred and contributed by an employer on his or her behalf to the plan. The contribution limit for 2019 is $19,000. Employees age 50 or older by year...

23 Dec 2019
0

Year End Tax Saving Tools for Your Business

Roger Rossmeisl, CPA
Small Business Tax Briefs
Year-End Tax-Saving Tools for Your Business

At this time of year, many business owners ask if there’s any year end tax saving tools they can implement. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery, equipment, furniture or other assets and place them into service by the end of the tax year. In other words, you can claim a full deduction for 2019 even if you acquire assets and place them in service during the last days of the year. The §179 deduction Under §179, you can deduct (or expense) up to 100% of the cost of qualifying assets in Year 1 instead of depreciating the cost over a number of...

ROGER ROSSMEISL, CPA

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

(714) 325-0442
roger@khopatel.com

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