Colleen S Krcelich, CPA

Own a business? Got a PPP loan? Your taxes just became very complicated!

If you collected both regular UC and PUA, you may get 2 1099G from PA at the end of the year. Remember to sign into both of your accounts. Per the web site: If you received unemployment compensation during the year, you should receive Form 1099-G from your state’s unemployment office. It is possible you may receive more than one 1099-G form. PUA will be reported on a separate form from any UC (including PEUC, EB, TRA) that you may have received. RTAA benefits are also reported on a separate form. You will need to add the payments from all forms when reporting this information to the IRS.

From my bank: On December 1, the Small Business Administration released public data about Paycheck Protection Program borrowersspecifically, the borrowers’ names, addresses, exact loan amounts and their PPP lender information. This was done by court order following lawsuits brought by media organizations seeking the data. ... Unfortunately, we have learned that some third-party businesses are using information from the court-ordered data release to market themselves to PPP customers. They may reference our bank’s name in their attempts to influence you and may even imply that we have some kind of relationship. Please be aware that we will communicate directly with you about your PPP loan and the forgiveness process. If you have any doubt, please call us directly. See more

Has your income taken a significant hit this year but your investments are killing it? You may want to take advantage of the 0% long term capital gains tax rate by selling appreciated investments and buying them back the next day to get a step up in basis. Talk to your CPA and investment advisor for more information.

As if 2020 wasn't hard enough! Do you utilize subcontractors in your business? In the past you sent them a 1099 MISC - however there is a new form for 2020 - 1099-NEC (well not technically new, but the IRS stopped using it in 1982, when I was 11).

A little naive is good, but remember to hire a good team of advisors to guide you - CPA, lawyer, banker

Have you done your financial checkup for 2020?

Some good opportunities here

Horrible. However, the recommendations to fight the fraud aren't much better. Let's punish those who do it right to stop the frauds. The KIZ tax credit helps many small startups. Making them get independent audits could be a big financial burden. Face to face meetings of all applicants would be a huge financial burden on the state (and our taxpayer $$)... Verifying IP address of applicants doesn't work - what if your CPA does the application on your behalf (which is allowed) and is located in NJ - doesn't mean your biz is a fraud and would not have caught these people. Surprise visits would be a good idea, as would random audits by the state. And annual proof of sale? The state handles the sale. Proof of how you used it? You can use the money from the sale any way you want - who is the state to tell me how to spend my money?

."There are four ways in which you can spend money. You can spend your own money on yourself. When you do that, why then you really watch out what you’re doing, and you try to get the most for your money. Then you can spend your own money on somebody else. For example, I buy a birthday present for someone. Well, then I’m not so careful about the content of the present, but I’m very careful about the cost. Then, I can spend somebody else’s money on myself. And if I spend someb...ody else’s money on myself, then I’m sure going to have a good lunch! Finally, I can spend somebody else’s money on somebody else. And if I spend somebody else’s money on somebody else, I’m not concerned about how much it is, and I’m not concerned about what I get. And that’s government. And that’s close to 40 percent of our national income." Milton Friedman Fox News interview (May 2004). See more

NY increased taxes on home purchases over $1 million, and Trump limited the deduction of real estate taxes (SALT) Prices are falling. Wonder how many people are now upside down on their mortgages.

California law will reclassify many subcontractors, who normally get a 1099-MISC, to employees with minimum wage and other benefits as of January 1st. Will hit Uber and Lyft, but will also hit many high tech firms. Elizabeth Warren would put this in place nationwide if elected.

New sales tax rules