Nina Borremans Tax + Accounting

01/01/2022

Reminder! Record your vehicle's odometer reading today if you deduct auto expenses on your tax return. If you take a photo of your dashboard, you'll have great back up if you're ever audited.

Whether you use the standard mileage method or actual expenses, you'll need the total mileage for the year in addition to your business miles.

01/01/2021

Second round of stimulus payments have started and will continue through next week. Look for a pending deposit (Description IRS TREAS 310 XXTAXEIP2) in your bank account if you got direct deposit in the last round. Checks and debit cards will start going out Wednesday, Jan 6.

01/01/2021

Tax Tip:
Do you claim auto expenses on your taxes? If so, then take a picture of your odometer *today*. Your accountant needs your total annual mileage, not just your business miles. Even if you didn’t do it last year, it will help set the pattern and you’ll be ready next year!

07/06/2020

Covid-19 Tax Alert - The Paycheck Protection Program (PPP) application deadline has been extended to August 8, 2020.

The PPP lets businesses affected by the coronavirus get direct government subsidies for payroll, rent and other costs. Self-employed individuals are also eligible.

The subsidies come as federal loans, but those loans can be forgiven if businesses use at least 60% of the funds for payroll.

Contact your tax advisor for more information.

06/27/2020

Paycheck Protection Program Ends June 30 – Apply Today!

If you filed or plan to file 2019 Schedule C and line 31 shows net earnings (not a loss) from self-employment, and your business was affected by the coronavirus pandemic, then you are eligible to apply for a forgivable loan equal to 2.5 months average 2019 monthly earnings. The PPP loan amount will be higher if you have employees.

There are local Athens banks and other financial institutions that are still accepting PPP loans from non-customers.

06/25/2020

Your employer is *required* to pay up to 10 days of emergency sick pay and up to 50 days of paid family and medical leave if you miss work due to the coronavirus. If they refuse because they don't normally offer this benefit, inform them that they will be reimbursed by the IRS and refer them to the Families First Act of 2020.

I'm re-upping this Covid-19 post because of FB posts I've read recently that suggest some employers are not complying with this law.

06/25/2020

Covid Tax Alert #12
RMDs Already Taken in 2020 Can be Rolled Over

The CARES Act permits taxpayers to ignore the requirement to take a Required Minimum Distribution (RMD) for the year 2020. Unfortunately, the CARES Act didn’t become law until March 27, 2020, by which time many taxpayers had already taken some or all of their 2020 RMD.

To remedy this, the IRS issued Notice 2020-51 on 6/23/20 giving taxpayers until August 31, 2020 to rollover (repay) the amount(s) withdrawn. Details below:

1) A taxpayer who took an RMD in 2020 can roll over the RMD to avoid paying taxes on the distribution as long as the rollover takes place no later than the LATER of: a) the normal 60-day rollover period, or b) August 31, 2020.

2) If a taxpayer took multiple payments in 2020 as part of the RMD, the taxpayer can roll over the total RMD amount as long as the rollover takes place no later than the LATER of: a) the normal 60-day rollover period, or b) August 31, 2020.

3) Such a rollover will not be treated as a rollover for purposes of the “one rollover per 12-month period” limitation found in §408(d)(3)(B).

Contact your tax professional for more information about the rules and income tax implications of RMDs.

06/17/2020

Covid-19 Tax Alert #11
It's not too late to apply for the PPP Loan or the EIDL (advance or loan)

You have until the June 30 to apply for PPP funding. There’s still $146B left in the second round of the program funding.

The SBA opened the Economic Injury Disaster Loans (EIDL) application on Monday to all businesses again. You can apply for the $1000 per employee advance (up to $10,000) as well as the loan. The EIDL advance does not have to be paid back, but it does reduce PPP forgiveness by the amount of the advance.

06/17/2020

Covid Tax Alert #10
Sole Proprietors with no Employees will get full forgiveness of their PPP loans (Yay!)

Basically, the maximum PPP loan for sole proprietors with no employees was 2.5 times the average monthly net income as shown on their 2019 Sch C tax form. That is now the exact amount that will be forgiven under the newest PPP legislation (PPP Flexibility Act of 2020).

A new bit of guidance has emerged from the Small Business Administration, with another interim final rule (IFR) appearing on the Federal Register website in pre-publication form. [1] This IFR contains a number of changes to the third and sixth interim final rule on PPP loans, mainly conforming la

04/11/2020

Covid-19 Tax Alert #9
Economic Impact Payments (EIP) Update

https://www.irs.gov/coronavirus/economic-impact-payments

Nonfilers: The IRS has a link on its website to allow those of you not required to file a tax return to provide simple information so you can get your payments. Do not use this link if your income was above the filing thresholds ($12,200 single, $24,400 joint).

You don't need to use the "nonfiler" link if you receive Social Security benefits or Railroad Retirement benefits. You will get a payment automatically.

Direct Deposit update: The IRS has posted a tool called 'Get My Payment' where you can provide or update your bank account information for direct deposit of the payment (tool not yet active). Word is that IRS is collecting banking info from returns with direct deposit of refunds, but not direct debit of payments. That could change, but you should use this tool to cover your bases if haven't gotten a direct debit refund from the IRS this tax season.

We’re committed to helping yout get your economic impact, or stimulus, payment as soon as possible. See if you are eligible for an Economic Impact Payment.

04/07/2020

COVID-19 Tax Alert #8
2019 IRA and HSA Contribution Deadline moved to July 15, 2020

This means you have until July 15 to make your Traditional IRA, ROTH IRA, or HSA contribution for tax year 2019 and report it on your 2019 tax return.