Welcome to our Blog Page
The McDonnell Richardson CPA, P.C. Blog Page provides frequently updated useful news and information to help keep you informed on tax strategy, business, and estate planning. Please do not hesitate to contact us for any questions and additional information you may have regarding these topics.
15 hours ago
COVID 19 Question Pondering
In April, a poll showed that 34% of small business was optimistic regarding the pandemic. The pandemic is still an issue. However, today 64% of small business feel they will survive the pandemic, at last through the next year. Do you agree? If so, what do you feel doubled the optimism? PPP and EIDL loans; increase in technology? ...
1 week ago
S CORPORATION OR LLC
This is a common question we see when structuring new or existing businesses. Also, we often see corporate income tax returns prepared by other professionals as a C corporation for many years instead of an S corporation, which causes the business owner unnecessary taxes that could have been easily avoided. Therefore, why not be both an LLC and an S corporation? While everything is fact specific and this post is not giving legal or accounting advice, with the proper elections and formation documents most small businesses benefit from being an S Corp and an LLC. Please let me know if you have questions. ...
2 weeks ago
PPP Forgiveness – No Need to Rush
Some borrowers should not rush to apply for forgiveness. The loan forgiveness application has not been updated to reflect the recent five week extension of the program’s deadline to Aug. 8. Also, many PPP related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. Some issues include:
Questions about utilities. The question is what qualifies as a utility under the PPP guidance.
Many exceptions to full-time-equivalent (FTE) rules. Employers who reduce their workforce generally see a reduction in their PPP forgiveness eligibility amount. But there are numerous exceptions.
Clarification needed for self-employed borrowers. If you’re a self-employed individual, how do you prove what you got paid in 2020 to compare it to 2019 for loan forgiveness purposes. ...
3 weeks ago
GUYS, I HAVE BEEN SAYING THIS FOR YEARS. UNFORTUNATELY, MANY PEOPLE COME INTO OUR OFFICES ALREADY VICTIMS
From the IRS: Misleading tax-debt resolution companies often exaggerate chances to settle tax debts for “pennies on the dollar” through an offer in compromise. In FY19, there were 54,000 OICs submitted to the IRS; the agency accepted 18,000 of them. But unscrupulous OIC “mills” oversell the program, casting a wide net for taxpayers, charging them pricey fees and churning out applications for an offer that often hasn’t got a chance. ...
4 weeks ago
PPP Loan Forgiveness
Everything is fact specific, however, generally speaking it may be best to be patient regarding the forgiveness application of a PPP loan. Below are a few reasons:
1. Most lenders are not ready to process forgiveness applications;
2. Organizations have 24 weeks to use their PPP money, leaving them more time to take steps that will help them qualify for full loan forgiveness;
3. Payroll costs are a significant component of PPP forgiveness;
4. Borrowers aren’t required to make any loan payments before they apply for forgiveness or until 10 months after their covered loan period ends; and
5. Applying for forgiveness may be easier than clients expect. ...
PPP LOAN INFO. UPDATE
As of June 30, 2020, there was approximately $130 billion left in PPP loans for funding. On Saturday July 4, 2020, a new law was signed extending the deadline for applying for a Paycheck Protection Program (PPP) loan from June 30 to August 8. ...
COVID 19 and Childcare Care Expenses
If you have two or more children below 13 and $6,000 or more of childcare expenses, then you may be able to benefit from two tax breaks. The dependent care FSA can be used for up to $5,000 in childcare expenses. However, the childcare credit counts up to $6,000 in care costs if you have two or more kids. You can't claim the credit for the $5,000 you pay with tax-free money from the dependent care FSA. You can take the childcare credit for the extra $1,000 in expenses if you have two or more children under 13, which can reduce your tax liability from $350 to $200 depending on your income. ...
Hey guys, me again. Throughout this COVID 19 era, we have always been open to serve you because we value you. With the newly updated mandates, we are continuing to strictly enforce the measures below to ensure your health and the health or our valued team members. Please note the following:
1. Face masks are required at all times when inside any one of our offices;
2. If a conference room is not available, you will be required to wait outside;
3. We have hand sanitizer for use in each conference room and the front desk;
4. Each conference room is thoroughly sanitized after each use; and
5. All team members that meet with you are required to wear masks at all times.
We apologize if these state mandates and the policy stated above create any inconvenience. However, please appreciate that we are required to follow the mandates. Also, the policies are not only for your safety and the safety of our team members. The policies are for the safety of your spouse, children, parents and the family members of our team. Let’s work on this together as a team. THANK YOU!! ...
2 months ago
Tax Savings with COVID 19
In these challenging economic times, it is extremely worthwhile to review many of the classic tax-saving opportunities that have provided a significant reduction of taxes during a wide range of economic conditions. While the recently enacted CARES Act contains several significant tax-saving opportunities, a great deal of needed cash can be generated by applying the tried-and-true tax provisions that have been used by tax planners for many years. It is essential to review all the circumstances of your business to determine planning ideas that are relevant in each set of circumstances. Please let us know if you need assistance. ...