Blogs


Say Goodbye to the ERC for the Fourth Quarter

American Rescue Plan Act of 2021, COVID Tax Credits, Employee Retention Credit, ERC, Paycheck Protection Program, PPP, PPP Forgivable Loan, Small Business
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Regarding the Employee Retention Credit (ERC): lawmakers giveth, and lawmakers taketh away. In this case, what lawmakers did is unfortunate. It’s like magic: now you see it, now you don’t. On March 11, 2021, the American Rescue Plan Act of 2021 became Public Law 117-2. This new law extended the ERC to the third and fourth quarters of 2021, as we wrote about in Don’t Miss Out on the Employee Retention Credit (August 2021). On November ...

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Refresher: Principal Residence Gain Exclusion Break (Part 3 of 3)

Federal Income Tax Savings, Home Sale Gain, Home Sale Gain Exclusion Break, Income Tax gain Exclusion Break, Income Tax Savings, Principal Residence Gain Exclusion Break, Principal Residence Tax Break, Qualified Individual, Real Estate Taxes, Residential Real Estate, Unrecaptured Section 1250 Gain
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets sizzling, significant unrealized gains are piling up for many homeowners. That’s good news if you’re ready to sell, but what about the tax implications? Good question. Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it’s a potentially big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of ...

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Refresher: Principal Residence Gain Exclusion Break (Part 2 of 3)

Federal Income Tax Savings, Home Sale Gain, Home Sale Gain Exclusion Break, Income Tax gain Exclusion Break, Income Tax Savings, Principal Residence Gain Exclusion Break, Qualified Individual, Real Estate Taxes, Residential Real Estate, Safe-Harbor Rule, Unrecaptured Section 1250 Gain
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets surging, significant unrealized gains are piling up for many homeowners. That’s good news if you’re ready to sell, but what about the tax implications? Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it's potentially a big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home sale gain. If ...

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Refresher: Principal Residence Gain Exclusion Break (Part 1 of 3)

Federal Income Tax Savings, Home Sale Gain, Home Sale Gain Exclusion Break, Income Tax gain Exclusion Break, Income Tax Savings, Principal Residence Gain Exclusion Break, Real Estate Taxes, Residential Real Estate
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo With residential real estate markets surging, significant unrealized gains are piling up for many homeowners. This is good news especially if you’re ready to sell, but what about the tax implications? Thankfully, the federal income tax gain exclusion break for principal residence sales is still on the books, and it’s a potentially big deal for prospective sellers. If you’re unmarried, the exclusion can shelter up to $250,000 of home ...

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IRS Income Limit Mistake on Home Office Deduction

Home Office, Home-Office Deduction, Income Limit, IRS, IRS Income Limit
Can you ever imagine that the IRS could ever be wrong? If the IRS were wrong, what would be your strategy? Situation You use the office in your home as the administrative office for your business. You use your downtown office as your sales or patient office. The downtown office is the office location where you make the cash register ring. Questions What percentage of your gross income comes from the office in your home? Why do you need to know this? Because the IRS Says... Pub. 587: In its home-office publication, the IRS says that because ...

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You Took Coronavirus-Related IRA Money Last Year: What Now?

and Economic Security Act, CARES Act, Coronavirus Aid, Coronavirus Relief, Coronavirus-Related IRA, CRDs, CVD Basics, IRA, IRA Money, re-contributions, re-contributions, Relief
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo If you’re a traditional IRA owner who was adversely affected by the COVID-19 pandemic last year (2020), you may have been eligible to take a tax-favored coronavirus-related distribution from a traditional IRA. If so, that privilege was thanks to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). In this analysis, we will call these tax-favored traditional IRA distributions “CVDs.” Elsewhere, you may see them called ...

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Can Home-Office Tax Deductions Include Garage Space?

Attic Office, Garage Office, Garage Space, Home Office, Home-Office Tax Deductions, Tax Law
Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Do you claim a tax deduction for a home office? Should you include or exclude your garage space in your calculations of business-use percentage? Home-office tax deductions require a look at the garage and other usable space as possible positive or negative factors in the home-office calculation. This takes more than a sentence or two. You need to read this article because there’s more to the garage space questions and answers than meets the ...

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Tax Pros Speak: Returning to In-Person Meetings

CDC, Centers for Disease Control and Prevention, In-Person Meetings, Non-Essential Meetings, Social Distancingm Safe Meetings, Teleconferencing, Videoconferencing, Virtual Meetings, Zoom
Good News or Challenging News… depending on how you want to look at it we appear to be nearing “normalcy” from the COVID-19 Pandemic that still requires our responsible due diligence for the safety of our Customers and Morris + D’Angelo Team. The Centers for Disease Control and Prevention (CDC) is still advising flexible meeting and travel options (such as postponing in-person non-essential meetings) and using videoconferencing or teleconferencing when possible. The CDC also recommends holding in-person meetings with masks and social distancing in open, ...

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Self-Employed During the Pandemic? Uncle Sam Didn’t Forget About You

ACA Premium Tax Credits, EIDL, Family Leave Tax Credits, Form 1040, Pandemic Unemployment Assistance Program, PPP Money, Schedule C, Self-Employed Business, Unemployment Benefits
In the past, Uncle Sam made no special effort to help you as a self-employed individual. For example, you had no “safety net” that existed for employees who lost their jobs during the COVID-19 Pandemic. You were just supposed to "Hang On" until things got better. But this time, with COVID-19, it’s different... If you report your business income as Self-Employed on Schedule C of your Form 1040 or any of the following: Receive 1099 income Operate your business as a single-member LLC and did not elect corporate status Operate a retail establishment or ...

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IRS Defines Real Property for Section 1031 Like-Kind Exchanges

1031, Investment Property. Jobs Act, IRS Section 1031, Real Property, Replacement Property, Section 1031, Tax Code, TCJA
The Tax Cuts and Jobs Act (TCJA) tossed an unwanted rule into Section 1031 by forbidding exchanges of personal property. But before we move on, let’s clarify one thing: Section 1031 is not an “exchange,” which is defined by Merriam-Webster as a trade. In a tax code 1031 exchange, you generally would: Engage an intermediary to handle the money and the tax paperwork; Sell your real property; and Buy the replacement property So you are buying and selling, but when you do this under the Section 1031 tax rules, you don’t pay taxes on the sale. Pretty ...

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