BuxMont Accounting LLC

I spent the last 6 hours studying the first 200 pages (out of 800) of the CARES Act, and this is a brief summary. This analysis is not all-inclusive and should not be relied upon as fact. Consult your tax advisor for more detail and confirmation. -Mark Breon, EA 267-498-5160 Individuals: Unemployment: No waiting week, benefits increased by $600/week for up to 39 weeks. Self-employed/Contract/gig workers qualify... Recovery rebates: $1200/individual + $500/child. These are prepayments of refundable tax credits for tax year 2020. If you have not yet filed 2019, do not file until you get the rebate if your 2019 income is higher than 2018 and greater than $150k MFJ/$112.5k HOH/$75k all others. Phaseout is 5% of amounts over those thresholds. You can qualify for the credit on the 2020 return if you don’t get it now. If you haven’t filed in 2018 or 2019 you’ll still get the advance credit if you received social security in 2019. Rebates will be direct-deposited if you used direct deposit on a tax return in 2019 (or 2018 if you didn’t file 2019). Retirement funds: $100k distribution allowed without 10% penalty for coronavirus-related distributions. NO TAX on the distribution if recontributed within 3 years!!! If recontributed, this is basically a 3-year zero interest loan from a 401k or IRA of up to $100k! You pay tax but no penalties if it’s not recontributed within 3 years. If the distribution is taxable, you include it in income over 3 years. 401k Loan limit increased to $100k up to 100% of the vested balance; due dates between date of enactment and 12/31/2020 are delayed for 1 year. RMD rules suspended for 2020 for most retirement plans $300 above-the-line charitable cash contribution deduction for 2020 (only helps if you’re not itemizing) Small Businesses: Get a 7a paycheck protection loan if you can! forgiveness of loan up to 2.5 months worth of average annual salary. Can be spent on salary, rent, utilities, business mortgage interest over an 8 week period between 2/15 & 6/30 Technical correction restores 15 year depreciation to leasehold improvements and allows for bonus depreciation retroactive to 2018 Employer payments of employees’ student loans may be tax-free up to $5250 for 2020 (not for >5% S Corp shareholders) Up to $5k Employee-retention refundable payroll tax credit if your business was closed and quarterly revenue dropped by 50% or more from prior year Payroll tax due dates delayed in some cases

Our office is currently closed due to Covid-19, but we are now operating remotely and are able to take calls and complete tax returns. You can reach us at 267-498-5160 if you need assistance. As many of our clients are facing financial emergencies, we are prioritizing those who are out of work or in need of emergency financing for their businesses. Please understand that during this time all projects will be significantly delayed. The IRS has delayed the tax filing deadline until 7/15, and we expect to meet that deadline for all of our clients. We appreciate your patience. Stay healthy!

We are beginning to hear from our business clients that they are feeling the impact of Coronavirus-related shutdowns. In this time of uncertainty, businesses facing should consider the following: 1. Pay attention to cash reserves & liquidity. Don't wait until the last minute to make business decisions. Travel & food-service industries will feel pinched before other types of businesses, but all businesses will likely be affected in some way over the longer term. 2. Consider ...taking out a line of credit or an SBA bridge loan for longer-term financing, even if you don't need the funds immediately. Start the process sooner rather than later so that you have the funds when you need them. It's easier to qualify for loans when you don't need them. 3. Review your fixed costs and consider areas that you can cut back. Making moves now to reduce overhead will allow you more flexibility down the road. 4. Consider moving more of your work into the cloud. We utilize QuickBooks online for many of our clients as a way to continue operations even if we're not able to be at the client's site. 5. Prepare a backup plan in case your area is quarantined. Which personnel are essential and which staff members can work from home? Do your staff have computers and remote access to your files? The Federal government is working on various legislation regarding tax credits and extensions. We will keep you informed in regards to tax credits and changes as they are announced. If you have any specific questions, please do not hesitate to call us at 267-498-5160.

Reason #1 your tax returns took longer to prepare this year: The new tax forms were designed by 3rd graders Actual instructions form 461: line 12: subtract line 11 from line 10 Line 13: "If line 12 is a negative number, enter it here as a positive number. If line 12 is a positive number, enter it here as a negative number"... If I ruled the world: Line 12: subtract line 10 from line 11 Line 13: this step is completely unnecessary now!!! YAY!!!

We've been selected as an Angie's List Super Service Award winner for the second year in a row. Thanks for the reviews!

I just posted a brief overview of the tax law changes. Please feel free to share this link with others looking for info!

If you're like us, you have lots of Amazon boxes piling up around the house. Check this out as a great way to recycle that box. Just fill it up with the stuff you never got around to taking to the thrift store. USPS will pick it up (FOR FREE) and take it to a local charity. Declutter, reuse the boxes, and give back to the community. If you register, you'll even get a tax receipt and your donation will be tax deducible!

Congratulations are in order for one of our first clients. We got to work with them through their first funding round in 2015. Nice work Vacasa!

I received this email from a client today. It's a great feeling when clients recognize the effort that our team puts in! "Mark, Many thanks to you, Barbara, and Ryan for your hard work on our behalf this year. As a small business owner myself I am always torn between the desire to expand, and the ... concern that I continue to provide the personal service my clients have come to expect. You have managed to do both, which is no small task. Best Wishes to you for 2016." S.R, Bethlehem, PA- 2nd year client

Tax season is underway, and lots of clients have already scheduled their appointments. Call us today at 267-498-5160 to make sure you get your preferred time.