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How to Report Restricted Cash 1600 941 smolinlupinco

How to Report Restricted Cash

When it comes to restricted cash, your company’s financial statements need to be transparent. Make sure your reporting practices are compliant with the current accounting guidance. What is restricted cash? Restricted cash is a type of “cash and cash equivalents” that can’t be used for general business operations or investments. Restricted cash comes in many…

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Home Office Deductions for Business-Owners Working From Home 1600 941 smolinlupinco

Home Office Deductions for Business-Owners Working From Home

Many people are working from home during the COVID-19 pandemic. If you’re self-employed, you might be able to claim deductions for home office expenses against your business income—as long as you run your business from your home or perform certain functions there. There are two ways to claim this tax break: the actual expenses method…

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Made Donations in 2020? It’s Not Too Late to Get Substantiation 1600 941 smolinlupinco

Made Donations in 2020? It’s Not Too Late to Get Substantiation

If you’re like many Americans, you may be receiving letters from your favorite charities acknowledging your 2020 donations. But can you still claim a deduction for the donation on your 2020 income tax return if you haven’t received such a letter? The answer is: It depends. Requirements for substantiation In order to support a charitable…

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Buying or Selling a Business: What Are the Tax Implications? 1600 941 smolinlupinco

Buying or Selling a Business: What Are the Tax Implications?

In many industries, merger and acquisition activity slowed in 2020 due to COVID-19. However, analysts expect things to improve as the country emerges from the pandemic in 2021. If you’re thinking about buying or selling a business, you’ll want to make sure you understand the tax implications. Arranging a deal There are two basic ways…

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Good News: Favorable New Rules on PPP Loans for Schedule C Filers Are Out! 500 260 smolinlupinco

Good News: Favorable New Rules on PPP Loans for Schedule C Filers Are Out!

By Thomas Cole, CPA, MST & Member of the Firm The US Treasury issued new rules on March 3, 2021, which increase PPP loan funds available to sole proprietors. Both first and second draw PPP loans can be based on the sole proprietor’s gross income for 2019 or 2020 (as listed on Schedule C). The…

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Debt Restructuring and Covid-19 1600 941 smolinlupinco

Debt Restructuring and Covid-19

During the COVID-19 pandemic, many businesses have experienced severe financial stress, and some may have delayed or missed loan payments as a result. Debtors who have become delinquent due to the pandemic may wish to ask lenders about restructuring their loans, rather than filing for bankruptcy. Debt restructuring as an alternative to Chapter 11 In…

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When Should You Transfer Wealth to Your Inheritors? 1600 941 smolinlupinco

When Should You Transfer Wealth to Your Inheritors?

Should you gift now? Or not? The answer isn’t simple. The doubling of the federal gift and estate tax exemption to an inflation-adjusted $11.7 million in 2021 is sometimes considered to mean that you use it or lose it. This means that you should gift now to take advantage of this exemption, which ends in…

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All Your 2021 Tax Questions Answered 1600 941 smolinlupinco

All Your 2021 Tax Questions Answered

For many people, paying 2020 taxes is more pressing right now than figuring out their 2021 tax situation. That makes sense! Your 2020 return is due in April—and the 2021 review is still a long way off. If you want to be ahead of the game, however, it’s still smart to get familiar with the…

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Business taxes have increased for 2021 1600 941 smolinlupinco

Business taxes have increased for 2021

Many tax-related limits affecting businesses are changed annually to account for inflation, and many have increased for 2021. Some, however, have stayed low, and there’s more good news: the deduction for business meals doubled for this year. Here’s what you need to know. Social Security changes There was a change in the amount of earnings…

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What you can learn from footnote disclosures 724 483 smolinlupinco

What you can learn from footnote disclosures

The small print on your company’s financial statements give investors and lenders insight into knowledge that’s vital to business and investment decisions. These footnotes include account balances, accounting practices and potential risk factors. Make sure your footnote disclosures cover these areas.  1. Transactions with related parties If companies may employ friends or relatives (or give…

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Tangible personal property and estate planning 640 420 smolinlupinco

Tangible personal property and estate planning

It might not sound that exciting, but in estate-planning terms, “tangible personal property” contains jewelry, antiques, photographs and collectibles. Sentimental value can make these difficult to plan for. If you’re not careful, arguing among your family members over these items can lead to hurt feelings, and even litigation. Clear communication You shouldn’t have to guess…

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Taking required minimum distributions in 2021 1600 1200 smolinlupinco

Taking required minimum distributions in 2021

Most people who have traditional IRA or tax-deferred retirement accounts know that they have to take required minimum distributions (RMDs) after reaching a certain age to avoid penalty.  With the passage of the CARES Act last March, people were allowed to skip taking these withdrawals in 2020. Now that it is 2021, however, RMDs must…

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