2020 Last-Minute Business Income Tax Deduction – Part 1 : Prepay Expenses

I know we have too many problems in 2020 already, let’s focus ourselves on those “good problems”. If you think your taxable income will be too high in 2020, it’s still early to plan ahead to reduce your taxable income … Read More

Employee Retention Credit

The CARES Act provides credit to eligible businesses with 50% of the qualified wages. The qualified wage is defined as Compensation to employees from the period of March 12, 2020 to December 31, 2020. Compensation is up to $10,000 per … Read More

Two SBA Loans: EIDL and Paycheck Protection Program (PPP)

If your business is affected by COVID-19, there are two types of relief you can apply for: (1) Economic Injury Disaster Loan (EIDL); https://covid19relief.sba.gov/#/ This loan can be directly applied from SBA. The loan amount is up to $2 million … Read More

Unemployment Benefits due to COVID-19

As part of the federal stimulus package approved by Congress, the unemployment benefit will be added an extra $600 per week for the next 4 months. Who is Eligible for this benefit? 1 . The worker who is unemployed is … Read More

Tax Due Date is July 15 due to COVID-19

The new due date of filing your 2019 individual income tax return is 7/15 (both Federal and California tax returns). This is not an extension of tax filing, this is a new due date because this is also the due … Read More

COVID-19 Related Distributions from IRA

If you own IRA’s and you have been affected by COVID-19 pandemic, you may be eligible for taking a tax-favored distribution from your IRA(s). An eligible individual can distribute up to $100,000 from his or her IRA(s) in 2020 without … Read More

Changes in Retirement Plan

There are some important changes related to the tax laws of the retirement plan. There was a new law signed called SECURE Act which has brought some changes. I have read and chosen a few to share with you here: … Read More

Business cell phone includes personal use?

You probably can’t run your business smoothly without the use of cell phone or tablets as mobile devices. It is clear that the monthly fees for the mobile devices is tax deductible if you use the phone exclusively for business … Read More

Tax free rental income

If you rent your house out, you are required to report the rental income in schedule E. Is there any exception? Yes! As long as you rent it out for less than 14 days in a year, you do not … Read More

Medical Expense – No Tax Benefit?!

You may know medical expense is tax deductible in schedule A (itemized deduction) of form 1040. However, you may overlook the fact you can’t deduct the medical expenses until such expenses exceed 10% of your adjusted gross income (AGI). That … Read More