Cutoffs: What counts in 2020 vs. 2021

November 30, 2020By Smeriglio Associates LLCNews

As year end approaches, it’s a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S. Generally Accepted Accounting Principles (GAAP). Strict observance of these rules is generally the safest game plan. The basics Companies that follow GAAP must use the accrual … Read More

IRS: PPP Safe Harbor for Deducting Expenses

November 30, 2020By Smeriglio Associates LLCNews

The IRS has provided a safe harbor for deducting expenses if a Paycheck Protection Program (PPP) loan isn’t forgiven. The safe harbor allows a taxpayer to claim a 2020 deduction for deductible eligible expenses if they received a PPP loan that: 1) the taxpayer expects to be forgiven after the 2020 tax year, and 2) … Read More

IRS: Tax Organization Tips for 2020 Filing

November 28, 2020By Smeriglio Associates LLCNews

Make filing your 2020 federal income tax return easier with some preparation. The IRS is reminding taxpayers to get ready for the 2021 filing season. Steps you can take now include, gathering your W-2, Wage and Tax Statements and Forms 1099 for Misc. Income, notices of unemployment compensation, refund interest, gig economy income and virtual … Read More

Health Savings Accounts for your small business

November 27, 2020By Smeriglio Associates LLCNews

Small business owners are well aware of the increasing cost of employee health care benefits. As a result, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). Or perhaps you already have an HSA. It’s a good time to review how these accounts work since the … Read More

Do you want to withdraw cash from your closely held corporation at a low tax cost?

November 26, 2020By Smeriglio Associates LLCNews

Owners of closely held corporations are often interested in easily withdrawing money from their businesses at the lowest possible 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.” And it’s not deductible … Read More

Taking distributions from a traditional IRA

November 25, 2020By Smeriglio Associates LLCNews

Although planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA and SIMPLE-IRA), it’s even more critical that you plan for withdrawals from these tax-deferred retirement vehicles. There are three areas where knowing the fine points of the IRA distribution rules can make a big difference in … Read More