Brennan and Co. CPA

03/21/2022

S Corp Salary Guidelines - What is Reasonable Compensation?

Although the definition of what constitutes a “reasonable” wage may seem subjective, the IRS scrutinizes the S Corp’s source of income—its gross receipts—and then determines if (and what tasks) the owner/shareholder performed for the S Corp to assist ...

03/15/2022

“State Continuation Coverage” is a state-based requirement similar to COBRA that applies to group health insurance policies of employers with fewer than 20 employees. In some states, state continuation coverage rules also apply to larger group insurance policies and add to COBRA protections. For example, in some states, if you're leaving a job-based plan, you must be allowed to continue your coverage until you reach the age of Medicare eligibility.

03/10/2022

Tax Deductible IRA Contributions Can be Made Until April 18, 2022

Generally, eligible taxpayers can contribute up to $6,000 to an IRA for 2021. For those 50 years of age or older at the end of 2021, the limit is increased to $7,000. Qualified contributions to one or more traditional IRAs may be deductible up to the ...

03/08/2022

IRS to Grant Filing Extension to Farmers and Fishermen Due to Tech Problems

The IRS intends to issue a notice providing penalty relief for qualifying farmers and fishermen filing Forms 7203 if they electronically file their 2021 tax return and pay in full any tax due by April 18, 2022...

03/03/2022

IRS Issues FAQs about 2021-2022 Earned Income Tax Credit (EITC)

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families in the form of a credit to either reduce the taxes owed or an added payment to increase a tax refund. The amount of the credit may change if the taxpayer has ...

02/27/2022

SEC seeks more disclosures of short-sale data

The Securities and Exchange Commission voted to require certain institutional investment managers to report short sale-related information each month. The SEC then would make aggregate data about large short positions, including daily short-sale activity data, available to the public for each indivi...

02/22/2022

Tax Planning FAQ’s: Equity denotes the value left over after liabilities have been removed. Recall the equation Assets = Liabilities + Equity. If you take your Assets and subtract your Liabilities, you are left with Equity, which is the portion of the company that is owned by the investors and owners.

02/14/2022

https://www.cpapracticeadvisor.com/tax-compliance/news/21256303/irs-suspends-sending-most-notices-due-to-backlog-and-errors

These automatic notices have been temporarily stopped until the backlog is worked through. The IRS will continue to assess the inventory of prior year returns to determine the appropriate time to resume the notices.

02/08/2022

Most income you receive is taxable income that is reported to the federal and state tax authorities. However, renting out your home or vacation property on a short-term basis can be done tax-free if you follow the rules. The rule: If you receive rental income for less than 15 days per year, that income is generally not taxable income

02/01/2022

Question: When I sell my home, do I have to replace it with a more expensive home to postpone taxes on the sale?
Answer: No. In fact, you don’t have to reinvest in another house at all. If you meet certain qualifications, you can use your sale proceeds for whatever purpose you choose - without having to pay tax on your profit in the sale.

01/28/2022

Statute of Limitations 101: This sets out the period within which actions may be brought upon claims or within which rights may be enforced. As it pertains to tax returns, the statute of limitations is generally three years from the date a return is due or filed.

01/18/2022

IRS Issues FAQs for Tax Filers Regarding Stimulus Payments and Tax Credits

Most eligible people already received their Economic Impact Payments and won’t include any information about their payment when they file. However, people who are missing stimulus payments should review the information on the Recovery Rebate Credit ...