What happens when a W-2 employee needs to deduct work related expenses due to Covid-19?


Our previous blog discusses the home office deduction and how it is not available to W2 employees working at home due to COVID. In addition, at-home employees cannot deduct equipment, such as computers, printers and supplies, postage, business meals, and miles driven for business, not even telephone and internet expenses, even though they are using them for work. How does an employee get made whole for using their own items for business usage?  The only way is through their employer.  The employer will get the deduction for such expenses.  However, there is a caveat as to how this reimbursement is handled [...]

What happens when a W-2 employee needs to deduct work related expenses due to Covid-19?2020-10-11T23:21:57+00:00

Home Office Deduction post TCJA of 2017

2020-09-15T01:13:38+00:00 Right now, at least 1 in 3 Americans find themselves working from home due to the Covid-19 pandemic. The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the Home Office deduction through 2025 for W-2 wage earners. This means if you receive a paycheck from an employer, you cannot deduct an expense for working in a designated part of your home. If you have an office outside the home but are now required to work from home due to the pandemic, the pandemic is NOT considered a hardship reason for a Home Office deduction according to IRS regulations. If [...]

Home Office Deduction post TCJA of 20172020-09-15T01:13:38+00:00

Automatic Extension to FILE taxes


Hello everyone. Last year I did a podcast about using an automatic extension if you are not ready to file your returns by the April 15th deadline. Because of the Covid pandemic, this year's due date is July 15th. Other than substituting July 15th for April 15th for 2020, the balance of the information remains relevant. Lynn Spencer Watch it here HAVE A GREAT WEEK

Automatic Extension to FILE taxes2020-07-13T01:58:11+00:00

How GA Film Tax Credits Work


Hello there, Andrea Altman with Killingsworth Spencer here. Today I want to let you all know about how the Georgia Film Tax Credits work, and how they can save many GA residents on their state income taxes. Many people are unaware of just how big a deal the GA film industry is and how it benefits every citizen. GA currently ranks 3rd behind California and New York in the total number of film and television projects produced. Over 92,000 Georgians are employed by the film industry with over $4.6B in direct wages, and an estimated economic impact of $9.5B (these are [...]

How GA Film Tax Credits Work2020-07-10T23:31:53+00:00

GA Film Tax Credits available for 2019 tax year


Hello everyone, We wanted to pass along some important information to you if still owe GA income taxes for 2019. Two updates as we approach July 15th:   We currently have over 60 mil Georgia film credits that can be used for 2019 returns and extensions. We can close on credit transactions as long as a wire is received on or before Tuesday, July 14th.   2. Disney has asked us to place these remaining credits, so they are very competitively priced:   20th Century Fox Productions 2017 tax year credits 190,000 available (prefer to place with 1 or 2 buyers, [...]

GA Film Tax Credits available for 2019 tax year2020-07-10T22:51:06+00:00

Section 165(i) and deducting 2020 Covid losses on your 2019 tax return


On March 13, 2020, the President declared the Coronavirus pandemic of sufficient severity and magnitude to warrant an emergency declaration for all states, tribes, territories, and the District of Columbia.  This declaration allows taxpayers to invoke Section 165(i) of the Tax Code turning 2020 losses into 2019 deductions. Small business owners may elect to deduct 2020 expenses directly attributable to COVID-19 on their 2019 returns, or amend 2019 if already filed.  Qualifying losses must not be compensated by insurance or otherwise.  Examples include costs for: additional office cleaning expenses personal protection equipment (PPE) costs to move employees to shelter at home [...]

Section 165(i) and deducting 2020 Covid losses on your 2019 tax return2020-06-30T21:00:41+00:00

PPP Flexibility Act of 2020


On June 5th, President Trump signed into law the PPP Flexibility Act (PPPFA) of 2020. Here are the highlights of the Act: Extension to 24 weeks to spend loan proceeds instead of the original 8 weeks Reduction of the required payroll spending from 75% to 60%. You may now use up to 40% for rent and utilities Lengthen the time to repay the “non-forgivable” portion of the PPP proceeds to 60 months at a 1% APR vs. the original 24 months Extend deferral of Social Security taxes until the end of 2020 even if PPP loan is forgiven Extend the period [...]

PPP Flexibility Act of 20202020-06-10T18:23:10+00:00

Did you throw money in the trash?


Sometimes trying to be too discreet can cause major headaches Did you receive your economic stimulus check from the CARES Act yet? If you qualified to receive a stimulus payment you may be one of the four million plus Americans who will receive an Economic Income Payment (EIP) debit card by mail. The Treasury department began sending the cards May 26th in a plain white envelope with the inscription “Money Network Cardholder Services in Omaha” in the return address portion. If you received an envelope like this, thought it was junk mail, and tossed it away, you are not alone. The [...]

Did you throw money in the trash?2020-06-04T21:12:35+00:00



PPP Loan Forgiveness Butcher, Baker, Candlestick Maker Businesses that received PPP loans will have to comply with SBA guidelines and then IRS regulations to receive forgiveness and henceforward prepare books for 2020 taxes. Once the PPP funds are received, an 8-week time clock begins. Actions to properly account for that money need to be put into place A separate account is advised, but can be worked around if specific bookkeeping practices are instituted To receive full forgiveness, at least 75% of the loan must be used on payroll Employer FICA matches will not be considered, nor will payroll processing fees Owners [...]

PPP LOAN FORGIVENESS2020-05-28T12:13:28+00:00

The IRS denies a Tax Deduction


“Like sands through the hourglass, so is the news surrounding the PPP loans.” As you may recall business owners have applied to borrow up to 2.5 times their average monthly payroll through the Payroll Protection Program. The CARES Act specifically states that the money must be used within 8 weeks of receipt for payroll and certain other expenses such as rent and utilities. If the loan proceeds are used correctly the loan can be forgiven. Generally when debt is canceled it results in gross income and becomes taxable. The CARES Act clearly states that forgiven debt under the PPP shall be [...]

The IRS denies a Tax Deduction2020-05-03T16:28:12+00:00
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