LB&J Business Update – Updated March 31st, 2020

CARES Act is now official and the application process is available! Learn more about the differences between the different loans and potential free money opportunities available to small businesses by clicking here

LB&J Business Update – Updated March 23th, 2020

Apply now for the SBA Disaster Assistance Loan program for your small business.  The SBA is now taking applications for up to $2 million loans at 3.75% interest or completely forgiving the loan if you keep on a certain number of employees until 6/30 and meet a number of other criteria. Click here to learn more.

LB&J Certified Public Accountants is ready to help!  Our focus is on small businesses and strategy.  We assist small businesses in getting the funds needed to keep their business afloat through the SBA Disaster Assistance Program. Our CPAs have over 50 years of experience and are ready to help you and your business. Apply now.

LB&J Business Update – Updated March 17th, 2020

For more information regarding the SBA business loans for businesses impacted by the Coronavirus, click here. Also note the below AICPA update below, indicating that the tax deadline is likely to be extended by 90 days due to the impact of the coronavirus, (for more details click here). We will keep you updated once we know more about both the SBA business loans or confirmation regarding the tax deadline extension.

AICPA Update – March 15, 2020 — Volume 27 No. 13

Yesterday, we told you about our efforts and conversations with the Treasury Department and the IRS to secure filing and payment relief for taxpayers and tax preparers in light of the uncertainty and challenges caused by the spread of the Coronavirus (COVID-19) pandemic.

Based upon our conversations, we anticipate that Treasury and the IRS will announce this week an extension of the April 15th deadline by as much as 90 days, and a waiver of penalties and interest for most taxpayers.

Additionally, Treasury and the IRS are aware of the major deadline for businesses tomorrow, March 16th, and the challenges facing taxpayers and tax preparers in meeting that deadline.  They have indicated that they would be generous in determining reasonable cause abatement of any penalties for taxpayers and tax preparers unable to file in a timely manner.

We will continue to keep you updated as we receive more information.

You can also visit our AICPA Coronavirus Resource Center for frequent updates and resources to help you manage clients’ needs and your business at this time.

LB&J Business Update – Updated March 16^th, 2020

Dear Clients, Visitors, Family & Friends

Though we are taking extreme precautions to mitigate any risks of the pandemic caused by COVID-19 for our clients and staff, we have still received many questions and wished to proactively address how we are responding.  As of this writing:

• We are still open for business at our physical office location.
• We have implemented the CDC guidelines of ‘social distancing’ and zero-touch in-person meetings.
• Business personnel have been busy with extra cleanings of the office and other high-touch areas.
• We will immediately implement any new CDC guidelines as this pandemic unfolds.

There are simple things the CDC recommends you do to help keep yourself and others healthy while visiting our location:

• Wash your hands often with soap and water for at least 20 seconds, especially after blowing your nose, coughing, or sneezing; going to the bathroom; and before eating or preparing food.
• Avoid touching your eyes, nose, and mouth with unwashed hands.
• Stay home when you are sick.
• Cover your cough or sneeze with a tissue, then throw the tissue in the trash.

We will continue to monitor the evolving COVID-19 situation and make every attempt to keep you informed. Emergency notifications to staff and clients will be conducted through our emergency communication channels including text notifications, telephone calls, and communicated directly to customers.

For updated information on this rapidly changing situation, please visit the CDC website here: http://bit.ly/39TQIyg

Here are a few things you can do before the end of the year to keep your income taxes as low as possible.

1. Due to the new tax legislation, many people are taking the new standard deduction.  If you are still itemizing, you can still do the following to help reduce your tax bill:
   1. Pay your property taxes.
      Real estate taxes and vehicle taxes are tax deductible. If your property tax bill is due early next year, you might want to pay it now and take the deduction.  Please remember that the new cap on state and local tax deductions are $10,000 per year.
   2. Donate to charity. It pays to be charitable, especially at the end of the year. Donating cash is always a good idea (fully deductible up to 60% of your adjusted gross income). You can also donate household goods, clothing, and other items. Under the Pension Protection Act, you will need a written receipt for all charitable donations, and donated items must be in good or better condition. You can also deduct the cost of driving for charity at 14 cents per mile. You cannot take a charity deduction, however, for the value of your time or services when volunteering.
   3. Pay doctor bills, insurance premiums, buy eyeglasses, or stock up on prescription medications during the year. You can take a deduction for medical expenses exceeding 7.5% of your adjusted gross income.
2. Tax Harvesting. To offset capital gains, investors can lower their capital gains taxes by selling securities that have lost money. Losses offset gains dollar for dollar, and losses in excess of your gains can be deducted, up to $3,000 per year.
3. Max out your retirement savings. Contributions to a retirement plan reduce your taxable income.
4. Max out your Health Savings Account (HSA). If you have a Health Savings Account, make sure you are maxing it out for 2019. HSAs work similar to IRAs, you can make contributions towards them up through April 15^th, 2020 and have contributions retroactively applied to your 2019 tax return.
5. Boost business expenses. Business owners and independent contractors can buy office supplies, invest in new equipment, or pay bonuses to their employees. They should also review their retirement plans or decide about setting up a retirement plan. Many retirement plans need to be established by the end of the year if owners want to make tax-deductible contributions for the year. You will want to review what constitutes a legitimate business expense just to make sure it will be tax-deductible.
6. 20% qualified business income deduction. Sec 199A provides for a 20% deduction with respect to “qualified business income” and certain other types of income. The deduction may be taken by individuals, estates, and trusts. The deduction for qualified business income is set to expire for tax year beginning after Dec 31, 2025.
7. Sole-Proprietors should evaluate becoming an S-Corporation.  Those who are self-employed, taxed as sole-proprietors should consider whether it makes sense for their business to be taxed as an S-Corporation.  S-Corporations can provide considerable tax relief under the right conditions.
8. Organize your financial records. Good record-keeping can really pay off at tax time. Not only will it make your tax preparation easier and faster, but you might uncover enough tax deductions to be able to itemize. More importantly, the IRS will require receipts and other records in the event of an audit. Business owners should be using accounting software such as Peachtree, QuickBooks, or Microsoft Office Accounting to ensure that all their income and expenses are recorded properly. Individual taxpayers may want to use Microsoft Money or Intuit’s Quicken to keep track of their personal spending. As an added bonus, these programs provide reports that summarize your tax deductions for faster tax preparation.

If there is anything we can help you with, please feel free to let us know.

Very truly yours,

LB&J Certified Public Accountants