179 results for author: Daniel Morris


Thinking About Venture Capital Financing for Your Company… Start with this…

Depending on where you’re sitting, you may have heard conflicting market rumblings suggesting that the ongoing economic (Venture Capital) scene is making it difficult for start¬ups seeking to raise capital. Some new companies have not seen or felt much of an impact from a tightening market, but, they may have noticed diminishing valuations, re-cutting of “deals”, and at times, deferred closings. If you’re like us at Morris + D’Angelo, we believe that there are plenty of deals to be done. In essence, the market is resilient and more is always available. There are a lot of finance opportunities waiting to be deployed with investors who ...

The White House Wants to Regulate Crypto

Last Friday (09.16.22) the Biden administration presented a framework for regulating cryptocurrencies and other digital assets. This action denotes the first time the executive branch has taken a position focused expressly on Crypto Crime. The White House believes that American financial guard dogs should do more to reduce fraud and abuse in crypto trading as the US creeps ahead with plans for the asset class. The Biden organization approached the Protections and Trade Commission and other regulators to “aggressively pursue investigations and enforcement actions against unlawful practices.” The proposal is part of a new White House report ...

Defeat the $10,000 SALT Cap with the PTE Tax (Part 2)

As I explained in Part 1 last week, a majority of states now allow pass-through entity (PTE) owners to get around the federal $10,000 state and local tax (SALT) deduction cap on individual taxpayers by having their PTE pay state income tax on its income at the entity level. Under this regime, the PTE deducts the state income tax as a federal business deduction, which is not subject to the $10,000 SALT cap. The PTE owners get either a state tax credit for the tax payment or a reduction in their PTE income for state income tax purposes. Either way, they end up with a full (or near full) deduction on their federal income tax returns for the state ...

Defeat the $10,000 SALT Cap with the PTE Tax (Part 1)

Maybe the least popular change brought about by the Tax Cuts and Jobs Act (TCJA) was a first-ever cap on the federal personal income tax deduction for state and local taxes (SALT). During 2018 through 2025, there is a $10,000 cap on deductions for the total of the following: State income taxes, or general sales taxes if elected instead of income taxes, State real property taxes, and Personal property taxes. Thus, for example, if you live in a high-tax state such as California or New York and owe $10,000 or more in property tax, that tax by itself will use up your $10,000 deduction. You’ll get no federal deduction at all for the ...

Claiming Your $250,000 Exclusion When Your Name Is Not on the Deed

In last April's article (2022) "Deducting Mortgage Interest When Your Name Is Not on the Deed", you learned how such a Mortgage Interest Deduction is possible. Do the same rules apply to claiming the $250,000 Home-Sale Exclusion? Pretty much, but not exactly, as we explain. The Big Difference Mortgage interest: IRS Reg. Section 1.163-1(b) states: Interest paid by the taxpayer on a mortgage upon the real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness. Note the phrase “Legal or Equitable ...

Act Now: Earn 9.62 Percent Tax-Deferred

From now (today) through October 2022, you can buy Series I Bonds that pay 9.62 percent interest. And you receive that rate for six months from the time of purchase. What happens after that? On November 1, 2022, the U.S. Treasury Department sets a new six-month rate equal to the fixed rate (currently zero) plus the Consumer Price Index inflation rate. The interest you earn for the first six months gets added to the principal, and you earn interest on that interest during the next six months (think compound interest). Sounds too good to be true. There’s a trick, right? Not really, but the government keeps your money, both your principal ...

Act Now: Claim Your 2020 and 2021 Employee Retention Credit (ERC)

During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). With the ERC, you found (or could find) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key Point: If you have not claimed the ERC, you can amend your 2020 and 2021 payroll tax returns for the credit. (Amending the payroll is not difficult—so no sweat on that score.) Three Ways to Qualify Decline in gross receipts (on a quarterly basis, by more than 50 percent in 2020 compared with 2019, and by more than 20 percent in 2021 compared with 2019) Government order that caused a full or partial ...

Spousal IRAs: What You Need to Know

Last week we presented a "Quick and Dirty Guide to Tax Issues and Savings" if you decided to join the ranks of the Self-Employed or maybe you're still considering whether to join the Great Resignation, maybe temporarily or maybe for good. Or your non-working status might have nothing to do with the Great Resignation. For instance, you could be a stay-at-home parent. In any case, as a spouse with no tax-defined earned income, you might want to continue saving for retirement in a tax-favored fashion by making contributions to a traditional or Roth IRA. An IRA set up to receive contributions by a non-working spouse is known as a spousal IRA. ...

Self-Employment: Quick and Dirty Guide to Tax Issues and Savings

If you're considering joining the Great Resignation and becoming self-employed to be in charge of yourself, pay attention. Before leaping, here are some things to consider regarding the tax implications. This self-employment thing may not be as rosy as it appears. Here’s the big picture. Don’t Believe the Hype Despite what some may believe, becoming self-employed wonʼt allow you to: Write off all your meals as a business expense, Deduct the cost of taking your friends to sporting events, Deduct all your transportation expenses, and Write off the entire cost of owning or renting a residence that contains your home office. S...