15 Aug 2021
0

California AB-150 Provides SALT Cap Work-Around

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
California AB-150 Provides SALT Cap Work-Around

While Congress develops legislation that would eliminate, and/or otherwise mitigate, the current TCJA implemented state and local tax (SALT) limit on an individual taxpayer's ability to take the itemized deduction for state and local taxes, California has just passed legislation which offers a work-around that will allow many Californians to mitigate the effects of the current $10,000 federal limitation on SALT deductions. On 7/16/2021, Governor Newsom signed into law AB-150, which provides a means by which certain pass-through entities (Qualified Entities) can make an election to pay California income tax (at the entity-level) on behalf of their owners, for which their consent must be given. The benefits yielded could be substantial for pass-through entity owners for which work-around makes sense. Curiously the IRS has approved these...

22 Jun 2021
0

Defending your Auto Dealership from Fraud

Roger Rossmeisl, CPA
Automotive, Fraud Briefs
Defending your Auto Dealership from Fraud

Although auto sales plunged at the start of the COVID-19 pandemic, they’ve since rebounded. In fact, some dealerships are reporting record sales in 2021. Problems remain — including supply bottlenecks. Also, your dealership may be more vulnerable to fraud. Factors such as employees working from home, new vendors and even booming sales, can put your business at risk. Here’s how to prevent fraud from cutting into profits. Focus on accounting Fraud prevention starts with strong internal controls. For example, good controls generally require a dealership’s accounting department to post transactions daily, including new and used vehicle sales, repair orders, invoice payments, payroll and cash receipts. By 1 p.m. on any given day, you should have access to real-time checkbook balances and other accounting information effective as of 5 p.m. the...

15 Jun 2021
0

Understanding How to Report Large Cash Transactions (Form 8300)

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
Understanding How to Report Large Cash Transactions (Form 8300)

The Internal Revenue Service recently reminded businesses (in News Release 2021-47) of their responsibility to report large cash transactions via the filing of Form 8300, Report of Cash Payments Over $10,000, and encourages e-filing to help them file accurate, complete forms. Although many cash transactions are legitimate, information reported on Form 8300 can help stop those who evade taxes, profit from drug trading, engage in terrorist financing and conduct other criminal activities. The government can often trace money from these illegal activities through payments reported on complete, accurate forms. To help businesses prepare and file reports, the IRS created a video on How to Complete Form 8300 – Part I, Part II. The short video points out sections of Form 8300 for which the IRS commonly finds...

17 Apr 2021
0

Update on California Classic Car Smog Exemption Bill AB 220

Roger Rossmeisl, CPA
Automotive
Update on California Classic Car Smog Exemption Bill AB 220

As posted to Mike Frankovich's YouTube Channel on 4/15/2021 (Run time: 8 min, 47 sec) If you're like me, you have trouble understanding why California continues to make it so difficult to engage is what is one of the most quintessential of California pastimes . . . classic car ownership. Since the smog check exemption changed from a 30 year rolling average to a set, 1975 and older cut-off back on 4/1/2005 classic car enthusiasts owning post-1975 vehicles have tirelessly petitioned their elected officials for relief. The latest California Classic Car Smog Exemption Bill, AB220, has just been amended to require collector car insurance to obtain a smog exemption on classic cars built during the years 1976-1982. In this clip Mike Frankovich discusses the assembly bill and what...

17 Apr 2021
0

CDTFA Releases Updated Pub 34, Motor Vehicle Dealers

Roger Rossmeisl, CPA
Automotive
CDFTA Releases Updated Pub 34, Motor Vehicle Dealers

The California Department of Tax and Fee Administration (CDTFA) has updated Publication 34 (Motor Vehicle Dealers), to include 2020 legislation that, effective 1/1/2021, imposes new reporting and payments requirements on certain used vehicle dealers. The new discussion, entitled "Used Vehicle Dealers" (in the section on "Motor Vehicle Sales"), provides in part that effective 1/1/2021, certain used vehicle dealers are required to pay sales tax on their retail sales of vehicles when a vehicle registration application is submitted to the Department of Motor Vehicles (DMV). The CDTFA previously discussed these changes in California Department of Tax and Fee Administration Special Notice L-766, 11/01/2020. The CDTFA also made a number of nonsubstantive changes to the publication. Publication 34 is designed to help motor vehicle dealers understand California’s sales and...

12 Mar 2021
0

Payroll Provisions of the American Rescue Plan Act

Roger Rossmeisl, CPA
Automotive, Current Events, Small Business Tax Briefs
Payroll Provisions of the American Rescue Plan Act

The American Rescue Plan, 2021 (ARPA, 2021) was signed by President Biden on March 11, 2021 to address the continuing economic impact on employers and employees the coronavirus (COVID-19) pandemic has posed.  The legislation extends and expands provisions found in the Families First Coronavirus Relief Act (FFCRA), Coronavirus Aid, Relief and Economic Security (CARES) Act, and the Consolidated Appropriations Act, 2021 (CAA, 2021).  This post reviews the payroll provisions of ARPA.   Paid Sick and Family Leave Credits Changes under ARPA apply to amounts paid with respect to calendar quarters beginning after March 31, 2021. ARPA, 2021: Extends the FFCRA paid sick time and paid family leave credits from March 31, 2021 through September 30, 2021.  Provides that paid sick and paid family leave credits may each be...

15 Jan 2021
0

SBA Re-Opening PPP for All Lenders by 1/19/2021

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
SBA Re-Opening PPP for All Lenders by 1/19/2021

A 1/13/2021 U.S. Treasury Department Press Release reported that the SBA is re-opening the Paycheck Protection Program (PPP) loan portal: to small lenders on 1/15/2021, and to all lenders on 1/19/2021.   Background On 12/27/2020, the Consolidated Appropriations Act, 2021 (CAA 2021) was signed into law. Containing extensions and expansions of the PPP, it provides additional funding for what has been a popular provision with many small businesses included in the Coronavirus Aid, Relief and Economic Security (CARES) Act . . . allowing eligible employers to obtain forgivable loans for certain payroll and non-payroll purposes. Important changes from the CAA include: authorizing an additional $284 billion towards the PPP, extending the PPP to 3/31/2021, and allowing for Second Draw loans for certain smaller businesses that initially received...

15 Jan 2021
0

SBA Announces Opening of PPP First Draw Loan Increases

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
SBA Announces Opening of PPP First Draw Loan Increases

A Procedural Notice has been released by the SBA to it's employees, as well as PPP lenders related to First Draw PPP Loan increases. Under the Economic Aid Act (EAA) in the Consolidated Apportionment Act (CAA 2021), certain borrowers may request an increase under certain conditions: First Draw Paycheck Protection Program Loan Increases After Enactment of the Economic Aid Act, 1/13/2021  SBA Procedural Notice Control No. 5000-20076 Increase to a First Draw PPP Loan The Economic Aid Act (EAA) permitted certain borrowers to re-apply or request an increase to a First Draw PPP Loan approved on or before 8/8/2020. In general, increases in the loan amount: may not exceed the maximum loan amount the borrower is entitled to under PPP rules, and may not exceed a total of...

12 Jan 2021
0

SBA Releases Top Line Overview of First and Second Draw PPP Loans

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
SBA Releases Top Line Overview of First and Second Draw PPP Loans

In a Treasury Department Press Release dated 1/8/2021, the Treasury Department and Small Business Administration (SBA) have announced that the Paycheck Protection Program (PPP) will reopen the week of January 11. To promote access to capital: initially, only community financial institutions will be able to make First Draw PPP Loans on 1/11/2021, and Second Draw PPP Loans on 1/13/2021. All participating lenders will be able to participate in the PPP shortly thereafter.  Interim Final Rules The SBA and Treasury Department recently released Interim Final Rules and other guidance. See the following related posts: SBA Releases Guidance on PPP Extension and Expansion SBA Releases Interim Final Rules Regarding PPP Second Draw Loans Additional Guidance: Top-Line Overviews The SBA also released a Top-line Overview of First Draw PPP and a Top-line Overview of Second Draw PPP. The Top-line Overview...

11 Jan 2021
0

SBA Releases Interim Final Rules Regarding PPP Second Draw Loans

Roger Rossmeisl, CPA
Automotive, Small Business Tax Briefs
SBA Releases Interim Final Rules Regarding PPP Second Draws Loans

The Treasury Department and Small Business Administration (SBA) have released Interim Final Rules (IFR) regarding the permission of "second draw loans" under the Paycheck Protection Program (PPP) recently authorized by the Consolidated Appropriations Act, 2021 (CAA 2021). BACKGROUND CARES Act The CARES Act provided the original legislation authorizing the Small Business Administration (SBA) to make loans to qualified businesses under certain circumstances. The provision established the Payroll Protection Program (PPP), which provides up to 24 weeks of cash-flow assistance through 100% federally guaranteed loans to eligible recipients for the purpose of maintaining payroll during the coronavirus (COVID-19) pandemic and to cover certain other expenses. Paycheck Protection Program Flexibility (PPPF) Act The Paycheck Protection Program Flexibility (PPPF) Act made significant modifications to the PPP, including: reducing the percentage of loan proceeds...

ROGER ROSSMEISL, CPA

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

(714) 325-0442
roger@khopatel.com

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