It’s still not too late to donate to charitable organizations for the 2020 tax deduction if you can do it by 12/31/2020. There are a few ways you can deduct charitable contributions in your tax returns 1.Donating your cash As … Read More
SK Accountancy Blog
Stay up on how tax and accounting news is affecting you and your business
2020 Last-Minute Business Income Tax Deduction – Part 1 : Prepay Expenses
I know we have too many problems in 2020 already, let’s focus ourselves on those “good problems”. If you think your taxable income will be too high in 2020, it’s still early to plan ahead to reduce your taxable income … Read More
Employee Retention Credit
The CARES Act provides credit to eligible businesses with 50% of the qualified wages. The qualified wage is defined as Compensation to employees from the period of March 12, 2020 to December 31, 2020. Compensation is up to $10,000 per … Read More
Two SBA Loans: EIDL and Paycheck Protection Program (PPP)
If your business is affected by COVID-19, there are two types of relief you can apply for: (1) Economic Injury Disaster Loan (EIDL); https://covid19relief.sba.gov/#/ This loan can be directly applied from SBA. The loan amount is up to $2 million … Read More
Unemployment Benefits due to COVID-19
As part of the federal stimulus package approved by Congress, the unemployment benefit will be added an extra $600 per week for the next 4 months. Who is Eligible for this benefit? 1 . The worker who is unemployed is … Read More
Tax Due Date is July 15 due to COVID-19
The new due date of filing your 2019 individual income tax return is 7/15 (both Federal and California tax returns). This is not an extension of tax filing, this is a new due date because this is also the due … Read More
COVID-19 Related Distributions from IRA
If you own IRA’s and you have been affected by COVID-19 pandemic, you may be eligible for taking a tax-favored distribution from your IRA(s). An eligible individual can distribute up to $100,000 from his or her IRA(s) in 2020 without … Read More
Changes in Retirement Plan
There are some important changes related to the tax laws of the retirement plan. There was a new law signed called SECURE Act which has brought some changes. I have read and chosen a few to share with you here: … Read More
$0 or 20% of business income deduction?
It’s important to do tax planning before December 31, you might lose certain deductions if you don’t plan properly. You could deduct 20% of your qualified business income (QBI) if you plan ahead. If you are married filing jointly and … Read More
Bad Consequence of Improper Reimbursements
If you are operating your own business, you may pay certain business-related expenses by yourself occasionally. You can certainly claim reimbursement from the company. Your expectation is to let your company reimburse you so that the business expenses can be … Read More