118 results for author: Daniel Morris


Know These Four Magic Business Mileage Rules

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo When you know the rules related to business mileage, you Protect yourself in the event of an IRS audit, and Pay less tax. Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted 92 percent. Or look at poor Mark; he lost almost all his vehicle deductions in an IRS audit. Be like Henry! Here’s how... Start with this brief four-question quiz on the mileage rules that apply to your business (regardless of business type). Quest...

Tax Pros Speak: Returning to In-Person Meetings

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, well-ventilated spaces. Meaning… Now is not the time to become complacent. We may see ...

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

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 professional practice as a sole proprietor, or Report your W-2 income on a ...

IRS Defines Real Property for Section 1031 Like-Kind Exchanges

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 sweet, huh? You are not off the hook. You can look at it this way: with the ...

Helicopter View of Meals and Entertainment (2021-2022)

I thought I'd share some good news as it seemingly "feels" like we might be seeing some improvements of our current COVID-19 protocols that would allow us to venture toward our more "normal" business activities that will now be more conducive to connecting with our Customers again. When you know the rules, Business Entertainment and “Employee Entertainment” costs are allowed to be tax-deductible. The IRS says that the following types of entertainment qualify for the 100 percent employee entertainment tax deduction. To help you get ready, check the table below for what you can do in 2021 and 2022 as the law stands now: Takeaways The ...

Deduct 100% of Your Employee Recreation and Parties

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo You take Bill, your best customer, to the local country club and treat him to 18 holes of golf. The golf produces a zero deduction. Compare this... You take your employees and their spouses and children to the local country club, where they play golf and tennis; swim; and enjoy lunch, dinner, and snacks. The cost of the country club meals and activity produces a 100 percent tax deduction. In this article, you will learn the following: What it takes to qualify an employee party for the 100 percent deducti...

Deduct 100 Percent of Your Business Meals under New Rules

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo As a subscriber (member), you know that we try to find multiple ways for you to legally deduct 100 percent of your business meal expenses versus the typical 50 percent. Now, thanks to a new law enacted December 27, 2020, new IRS regulations, and a new IRS notice (yep, all three are new), you have fresh opportunities for writing off 100 percent of your business meals. For 2021 and 2022, you can deduct 100 percent of your business meals by paying attention to a few new, easy rules. We’ll explain how this new, ...

New Stimulus Law Grants Eight Tax Breaks for 1040 Filers

The new, massive stimulus bill enacted into law on December 27, 2020, contains eight new tax breaks designed to help the non-business taxpayer.

New COVID-19 Supplemental Paid Sick Leave is a New Requirement as of March 29, 2021, for California Employers

In California starting March 29, 2021, by Senate Bill 95, signed by Governor Newsom on March 19, 2021 (California Supplemental COVID-19-related Paid Sick Leave, “CASPSL"), employers operating in California must begin providing their California employees a new form of COVID-19 supplemental paid sick leave. The new version reaches small and large employers alike and mandates that employers provide COVID-19-related paid sick leave in more circumstances than last year’s supplemental paid sick leave law and applies retroactively to January 1, 2021. Last year’s supplemental paid sick leave expired December 31, 2020. Governor Newsom signed the ...

SEP-IRA vs. Solo 401(k): Which Should You Choose?

How do you multiply your net worth? Let the government help Here’s how: with both the SEP-IRA and the Solo 401(k) retirement plans, investing in your tax-favored retirement: