Thinking of applying for your Paycheck Protection Plan (PPP) loan forgiveness? Then here’s some good news for you… If your PPP loan takes your employees into account andYour PPP loan was for $50,000 or less… … your loan-forgiveness account may have increased by 100% even though you reduced employee pay or headcount. What’s more, this new Small Business … [Read more...]
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Use the IRS Safe-Harbor Tax Relief for Ponzi Scheme Losses
A good Ponzi scheme can be hard to detect. For example, the schemer may pay 10% interest when the going rate is 5%. But the Ponzi swindler pays the victim’s 10 percent with money collected from other victims. It’s a house of cards that ultimately fails as Bernie Madoff can attest. Victims can lose their entire investments. Why is the Tax Reduction Letterinterested in … [Read more...]
The Insurmountable Sin in an IRS Audit: A Sad and True Story
Do you keep a mileage log that can stand up to a careful IRS audit? You’d better have one because, as we explained in an article we wrote last month, an accurate, well-documented mileage log can keep you out of big trouble. Want to see how bad things can get if you fail to maintain one? We’ll tell you what happened to poor Therone Johnson, when you read the full … [Read more...]
How Many Whole or Partial Rooms Can You Use for Your Home Office?
During the COVID-19 pandemic, there’s a good chance you’ve been working from a space inside your home, some of the time or all of the time. This means that you may be eligible for a valuable home-office deduction! In order to help you qualify for the deduction, in this issue of the Tax Reduction Letter, we’ll provide answers to three important questions you need to ask … [Read more...]
TCJA: Don’t Lose Out When Corp. Vehicle Is in Your Personal Name
Do you operate your business as an S or C corporation? Do you drive a vehicle for business purposes that’s registered in your own name? Then watch out! You see, the Tax Cuts and Jobs Act (TCJA) changed the rules for tax years 2018 to 2025. These changes in the tax law deny 1040 employee business-expense deductions when you use a personal vehicle for corporate … [Read more...]