Lemas Accountancy Corporation

This is why there is not a second stimulus!

Hope your year is going.as well as it can. Surviving 2020 is the big goal for most of us. Just a friendly reminder that your S-Corporation or Partnership Returns are:... 32 days until calendar year Corporations and partnerships are due. Due September 15th, 2020. Please make sure your getting ready for this upcoming deadline as soon as possible it will be a busy window for us. 1040 returns are due in 62 days.

ALERT: NOW is the time to Act As a small business owner is imperative that we all unite on simple task...sign the recall ASAP. Please don’t assume others will do it, because this for California. He is not going to get better, he will get worse as we move toward fall/flu season. We will always have forms available, but you can download at www.recallgavin2020..com.... Petition page: https://recallgavin2020.com/petition/ I would encourage you all to offer signing stations at your place of business. We need 1.5 million signatures to force th recall. Complaining does nothing, but signing the recall gives us all a chance.

There some new credits for employee that get sick with Covid19 and are unable to work. The credit is for up to 80 hours, Maximum per day is 511 and Maximum per year is $5,110. These are not straight forward to setup and must be done in a specific manner for the credit to calculate correctly. If you have a payroll service you will need to tell them if you have hours paid for Covid19 Absences. Here is a link to create the various payroll items.... https://quickbooks.intuit.com//how-to-track-paid/00/524743

If you did not get a PPP loan and revenue decreased 50% year over year in any quarter of 2020, you might be eligible for Employee Retention Credit....this link has a nice calculator in a box in this post....Simplifies the process. https://quickbooks.intuit.com//employee-retention-credit-/

Good News for PPP loans.

It’s official 6 months to repay PPP loans!

Good news maybe.....Congress has passed proposed legislation that would increase the time to use your PPP funds from 8 weeks from date of receipt to 24 weeks. The bill has issues (pelosi) that will be addressed in the senate, but I suspect this will pass in the near future.

Good Article on Dental Office Changes. https://www.kpbs.org//california-dentists-new-rules-coron/

Good News for Dentists. https://www.ada.org//ada-president-reopening-dental-practi

Employers can pay tax free payments to employee for costs of telecommuting and more. President Trump’s emergency declaration declared the entire country a disaster area due to COVID-19, triggering the availability... of Section 139 payments. Tax-Free Payments: Sec. 139 Payments IRC Section 139; Joint Committee Explanation JCX-93-01, p. 16; Rev. Rul. 2003-12. As an example, the IRS rules that grants received by employees under an employer program to pay or reimburse reasonable and necessary medical, temporary housing, or transportation expenses incurred as a result of a flood qualified as Section 139 payments. With respect to the COVID-19 pandemic, employers could reimburse, for example: Out-of-pocket medical expenses, Teleworking costs to the employee, Funeral costs for an employee or their family member, and Childcare costs so employees can continue to work. The following payments do not qualify as tax-free Section 139 payments: Income replacement payments, Payments to business entities, and Payments for expenses compensated by insurance or otherwise. Tax-Free Payments: Sec. 139 Payments IRC Section 139; Joint Committee Explanation JCX-93-01, p. 16. Because Congress does not think taxpayer can account for their actual expenses during a disaster, taxpayers get the exclusion provided the payments treated as tax-free are reasonably expected to be commensurate with the expenses actually incurred. Employers do not need a formal written plan to provide Section 139 tax-free payments, but we recommend one, along with tracking the amounts given to which employees. A state order requires Bob’s employees to all telework from home rather than come into the office. Bob establishes a program to provide grants to help his employees with telework costs. Tax-Free Payments: Sec. 139 Example IRC Section 139; Joint Committee Explanation JCX-93-01, p. 16. Two of Bob’s employees, Sam and Helen, ask for a grant, and they each estimate they will spend $1,500 on telework expenses. Bob provides $1,500 to both Sam and Helen, and they each spend approximately $1,500 on telework expenses, though neither strictly tracks the funds. Here are the tax results: (This does not Suck) Bob gets a $3,000 tax deduction, Sam gets $1,500 completely tax-free, and Helen gets $1,500 completely tax-free.

This seems like a bunch of words, but If effects you this is a big deal. Congress had intended for QIP (but likely was spending too much effort on impeachment) to 15 Years and NOT 39.5 years. Many Amended returns to come. Qualified improvement property (QIP) is any improvement made by the taxpayer to the interior portion of a building that is... nonresidential real property if the taxpayer placed the improvement in service after the date the building was placed in service. QIP does not include any improvement for which the expenditure is attributable to The enlargement of the building, Any elevator or escalator, or The internal structural framework of the building. Congress intended QIP to be 15-year property, eligible for bonus depreciation, and eligible for Section 179 expensing; however, the TCJA error caused QIP to be 39-year property and ineligible for bonus depreciation. The CARES Act made QIP 15-year property and eligible for bonus depreciation retroactively as if Congress had included it in the TCJA when it originally became law. This allows a retroactive lump-sum deduction due to bonus depreciation, which could also create a NOL that can generate additional refunds. There was no change to the Section 179 treatment of QIP, which was allowed by TCJA from the start. Example: Karen placed $50,000 of QIP in service in her Schedule C business on March 1, 2018. She did not elect Section 179 expensing and did not elect out of bonus depreciation. Her annual depreciation deductions are: 2018 -- $1,218, 2019 through 2056 -- $1,538, and 2057 -- $320. Karen has three options based on what will give her the best tax outcome: Amend her 2018 tax return and claim an additional bonus depreciation deduction of $48,782 on Schedule C, File her 2019 tax return with a negative Section 481(a) adjustment of $48,782 on Schedule C, or Filed her 2020 tax return with a negative Section 481(a) adjustment of $47,244 on Schedule C