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Mar 2020MONEY FOR NOTHING AND CHECKS FOR FREE!!!
As part of the stimulus package relief, businesses with fewer than 500 employees are eligible for up $10 million dollars in loans, which can be used for payroll and other expenses, like insurance premiums, mortgages, rent or utilities. The federal government has allocated $370 billion for this program. SO LONG AS THE COMPANIES EITHER: (1) DO NOT LAY OFF WORKERS; or (2) REHIRE THE ONES…
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Mar 2020Tax Day Extended to July 15th!
Last week I shared with you Treasury’s and the IRS’ decision to extend the PAYMENT date for 2019 federal income taxes to July 15 as a result of COVID-19. This means payments for 2019 federal income taxes will be timely if paid by July 15, not the normal deadline of April 15. This also means penalties and interest will not begin to accrue until July…
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Mar 2020UPDATE – SBA Economic Injury Disaster Loans – COVID-19 Crisis
UPDATE!!! – North Carolina has just been approved for SBA Economic Injury Disaster Loans. Economic Injury Disaster Loans (EIDL) are loans guaranteed by the SBA available to businesses, profit and non-profit. Eligibility depends upon whether the business is located in a federal disaster declaration area. Businesses can apply for an EIDL of up to two million dollars for secured loans and $25,000.00 for unsecured loans….
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Jun 2019Avoiding State Income Tax with Discretionary Trusts
Discretionary trusts just received another endorsement. Last Friday The Nine, otherwise known as the United States Supreme Court, gave discretionary trusts a big boost with the Court’s ruling in North Carolina Dept. of Revenue vs. Kimberly Rice Kaestner 1992 Family Trust (“Kaestner”). In Kaestner, the Court, in a unanimous decision, held a state, in this case, North Carolina, could not tax a trust’s beneficiary on…
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Mar 2019Have You Thought About a Non-Compete Agreement With Yourself?
Yes, you read that right. A non-compete agreement with yourself. It might sound counter intuitive, but in fact, having such an agreement can afford you a significant tax reduction if you own a business taxed as an S corporation and decide to sell it. Here’s how it works: In a typical business sale structured as an asset purchase, which is how the majority of sales…
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Feb 2019Physical Presence No Longer the Key to Taxing by States
Business owners beware – You do not have to be in a state physically to be taxed by that state, so says the United States Supreme Court. Overturning a prior decision that required businesses to have a physical presence in a state before the state could tax that business, in South Dakota v. Wayfair (“Wayfair”) the Court ruled states could tax internet commerce where the…
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Sep 2018The Queen of Soul’s Estate Could Be Royal Mess
In her passing, Aretha Franklin joined a list of notable famous people who died without a will. Other famous members of this select group include Jimi Hendrix, Bob Marley, Sonny Bono, Stieg Larson (author of The Girl With the Dragon Tattoo), Pablo Picasso, DJ AM, Michael Jackson, James Brown, and Thomas Kinkade. In each of these cases the administration of the estate dragged on for…
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Sep 2018Tips for Avoiding Problems When Mailing Tax Documents & Payments
With the extended filing deadlines quickly approaching for those who timely filed requests for extensions (September 17, 2018 for entities and October 15, 2018 for individuals), the North Carolina Department of Revenue (NCDOR) just released Directive TA-18-1 regarding the timely mailing of returns, documents, and payments. Though the directive contains no new information, it serves as an important reminder of the availability as well as…
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Aug 2018Now Is The Time To Reorganize Your Business
The Tax Cut and Jobs Act of 2017 provides a 20 percent deduction to non-corporate taxpayers of up to 20 percent of the their qualified business income (QBI) from each of the their qualified trades or businesses. Aside from thresholds and phase outs, there are two conditions a taxpayer must meet. First, the taxpayer must be a “non-corporate taxpayer,” which in simple terms means C-corporations…
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Jun 2016Hiring Summer Help Without Getting Burned
Many employers look to youth to fill their employment needs during the summer. It can be a cost savings and provide valuable and much needed help to employers, while providing valuable experience and income for the young employee. However, youth employment can create traps with costly penalties for the unwitting employer. This blog post will, hopefully, help you identify and avoid these traps. 1. Is…