The Weddle Group

As of December 1, 2020 The Weddle Group has new, larger digs! We are still located in the Arden area of Sacramento in the Citizen's Business Center. We have moved to Suite 209 of the Citizen's Business Center. This new move allows for our growth and gives us space to have in person appointments with appropriate social distancing. Please contact us at (916) 459-2553 or www.twg.tax to schedule time with us. Virtual appoints continue to be available.

Don’t forget that federal and state taxes are due this year on July 15. Please contact us if you still need to file. In-person and virtual appointments available. Rates start at $139 with electronic filing.

Due to the COVID-19 pandemic, Congress temporarily restored your ability to get fast cash from your net operating losseseven losses incurred in prior years (2018 and 2019). NOL Defined You have an NOL when certain deductions exceed your gross income.... An NOL generally occurs when you have a net business loss for the tax year. Example. John has a Schedule C loss of $40,000 and $10,000 in wage income from a part-time job. John’s NOL is $30,000. COVID-19 Temporary NOL Rules The CARES Act suspends the TCJA limitations on your NOLs for tax years beginning in 2018, 2019, and 2020, which means you can carry back your NOL five years and carry it forward indefinitely, and apply 100 percent of the loss. You can also elect to waive the carryback and only carry forward the NOL. Claiming Your Refund The best way to claim a refund from an NOL carryback is to use the tentative refund procedures by filing either Form 1045, Application for Tentative Refund, or Form 1139, Corporation Application for Tentative Refund. If you qualify to use these forms to claim your refund, you get two benefits: 1. The IRS makes only a limited examination of the claim for omissions and computational errors. 2. You receive your cash refund within 90 days of filing your application. Normally, to qualify to use this procedure, you’d need to file your application no later than 12 months after the end of the tax year in which your NOL arose. Therefore, for NOLs on a 2018 Form 1040, you’d normally be out of luck, as the deadline was December 31, 2019. But the IRS has given you mercy: you have a six-month extension to file your Form 1045 or Form 1139 if you have an NOL that arose in a tax year starting in 2018 and that ended on or before June 30, 2019. For example, if your NOL was on your 2018 Form 1040, you now have until June 30, 2020, to file Form 1045. You’d better hurry! If you had a loss year in 2018, call me now so that we can get your NOL tax form into the IRS before June 30, the deadline for a quick refund. My direct line is 916-459-2285

Expenses paid with Payroll Protection Program Funds are NOT Tax Deductible. Important information for business owners. Please call us if you have questions about the tax ramifications of the Payroll Protection Program.

Unless Congress acts, the Payroll Protection Program loans are not as powerful of a tool because the wages spent cannot be used as a tax deduction if the payroll amounts are forgiven. https://www.wsj.com//irs-denies-deductions-tied-to-small-b

Just a reminder, the IRS will NOT call you to verify your bank account number for the forthcoming stimulus payments. All communication that comes from the IRS is in writing. Please keep yourself safe from these scam artists.

https://www.sba.gov/offices/disaster/dfocw/resources/1658272 Disaster Loans for Small Businesses affected by the Covid-19 Crisis

Are you new to investing? Worried about this crazy, volatile market? See our easy to use investing guide to help you learn about investments and markets. https://www.twg.tax/investment-strategies.php

Please visit our new website and subscribe to our newsletter! https:\\www.twg.tax

Evening and weekend appointments available. Book online for your appointment today.Evening and weekend appointments available. Book online for your appointment today.

Congress let many tax provisions expire on December 31, 2017, making them dead for your already- filed 2018 tax returns. In what has become much too common practice, Congress resurrected the dead provisions retroactively to January 1, 2018. That’s good news. The bad news is that we have to amend your tax returns to make this work for you. And you can relax when filing your 2019 and 2020 tax returns, because lawmakers extended the extender tax laws for both years. Thus, no w...orries until 2021and even longer for a few extenders that received special treatment. Back from the Dead The big five tax breaks that most likely impact your Form 1040 are as follows: 1. Exclusion from income for cancellation of acquisition debt on your principal residence (up to $2 million) 2. Deduction for mortgage insurance premiums as residence interest 3. 7.5 percent floor to deduct medical expenses (instead of 10 percent) 4. Above-the-line tuition and fees deduction 5. Nonbusiness energy property credit for energy-efficient improvements to your residence Congress extended these five tax breaks retroactively to January 1, 2018. They now expire on December 31, 2020, so you’re good for both 2019 and 2020. Other Provisions Revived Congress also extended the following tax breaks retroactively to January 1, 2018, and they now expire on December 31, 2020 (unless otherwise noted): Black lung disability trust fund tax Indian employment credit Railroad track maintenance credit (December 31, 2022) Mine rescue team training credit Certain racehorses as three-year depreciable property Seven-year recovery period for motorsports entertainment complexes Accelerated depreciation for business property on Indian reservations Expensing rules for certain film, television, and theater productions Empowerment zone tax incentives American Samoa economic development credit Biodiesel and renewable diesel credit (December 31, 2022) Second-generation biofuel producer credit Qualified fuel-cell motor vehicles Alternative fuel-refueling property credit Two-wheeled plug-in electric vehicle credit (December 31, 2021) Credit for electricity produced from specific renewable resources Production credit for Indian coal facilities Energy-efficient homes credit Special depreciation allowance for second-generation biofuel plant property Energy-efficient commercial buildings deduction Temporary Provisions Extended Congress originally scheduled these provisions to end in 2019 and now extended them through 2020: New markets tax credit Paid family and medical leave credit Work opportunity credit Beer, wine, and distilled spirits reductions in certain excise taxes Look-through rule for certain controlled foreign corporations Health insurance coverage credit If you have questions about the extenders, please call us at 916-459-2553

2 million ITIN's are set to expire in 2019. An ITIN is a Tax ID number used by taxpayers that do not qualify for a Social Security Number. ITINs with middle digits 83, 84, 85, 86, or 87 will expire at the end of the year. Avoid refund delays by submitting your renewal application soon. Please call us if you need assistance renewing your ITIN.

If you haven’t filed your taxes yet, don’t stress. We are here to help!

179 expensing or Bonus Depreciation? Before tax reform, the de minimis safe harbor election was the best way to immediately expense the entire cost of your small-business assets for federal income tax purposes. Now that the Tax Cuts and Jobs Act tax reform gives you 100 percent bonus depreciation through 2022, you have three possible reasons to use 100 percent bonus depreciation as your federal income tax default expensing method:... 1. If you are filing Schedule C for your business activity, there is no self-employment tax on the sales proceeds. 2. It’s an easy method. You face none of the de minimis rules. 3. There are increased Section 199A deductions in certain cases. Before deciding on the best method for federal tax purposes, make sure to check on how your selection will affect your property taxes and what that does to your net savings. If you want our help deciding which method is best for you, please call us at 916-459-2553