As COVID-19 and tax-related relief questions continue, Toni Covey and Jeff Webb of Anderson Advisors answer your tax questions. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.
Highlights/Topics:
Due to the AB5 Law, my clients can no longer hire me as an independent contractor. Instead, they are hiring out-of-state contractors. Do I need to switch to an S Corp or move my company out of California? It depends and offers various options, such as a worker must be customarily engaged in an ...
As COVID-19 and tax-related relief questions continue, Toni Covey and Jeff Webb of Anderson Advisors answer your tax questions. Do you have a tax question? Submit it to taxtuesday@andersonadvisors.
Highlights/Topics:
- Due to the AB5 Law, my clients can no longer hire me as an independent contractor. Instead, they are hiring out-of-state contractors. Do I need to switch to an S Corp or move my company out of California? It depends and offers various options, such as a worker must be customarily engaged in an independently established trade occupation
- For a preschool that received Coronavirus relief, will the PPP loan forgiveness amount, the grants, and the EIDL advance be taxable as income? PPP loan and grants are not considered taxable income, however, an EIDL of $10,000 will not be forgiven or tax-deductible from PPP
- I have solely owned a second home long-term in New York. Do I need to file taxes separately from my wage-earning wife to minimize my capital gains tax considering my present income is limited to Social Security? No, but it primarily depends on how much the wife is earning
- My wife and I own several rental properties and manage/maintain them mostly ourselves with no other employees. Does setting up a corporation to manage the rental properties (each on their own LLC) make sense from a tax standpoint? Consider a corporation to manage the rental properties or manage the LLCs that hold the rental properties
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Resources:
Uniform Transfers to Minors Act (UTMA)
https://www.investopedia.com/terms/u/utma.asp
Economic Injury Disaster Loan (EIDL)
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
Paycheck Protection Program (PPP)
https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf
Paycheck Protection Program (PPP) Flexibility Act
https://www.investopedia.com/paycheck-protection-program-flexibility-act-of-2020-an-overview-4846944
Small Business Administration (SBA)
https://www.sba.gov/
Internal Revenue Service (IRS)
https://www.irs.gov/
Wills and Trusts
https://andersonadvisors.com/living_trusts/
Individual Retirement Arrangements (IRAs)
https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras
Traditional and Roth IRAs
https://www.irs.gov/retirement-plans/traditional-and-roth-iras
Self-Employment Tax
https://www.irs.gov/taxtopics/tc554
Unrelated Business Income Tax (UBIT)
https://www.irs.gov/charities-non-profits/unrelated-business-income-tax
Unrelated Debt-Financed Income (UDFI)
https://www.irs.gov/pub/irs-tege/eotopicn86.pdf
California Assembly Bill 5 (AB5)
https://www.investopedia.com/california-assembly-bill-5-ab5-4773201
Franchise Tax Board (FTB)
https://www.ftb.ca.gov/
Capital Gains Exclusion/Section 121
https://www.irs.gov/taxtopics/tc701
Charitable Organizations
https://www.irs.gov/charities-non-profits/charitable-organizations
Real Estate Professional Requirements
https://www.irs.gov/pub/irs-utl/33-Real%20Estate%20Professionals.pdf
Form 1065: Schedule K-1
https://www.irs.gov/pub/irs-pdf/f1065sk1.pdf
Form 8805
https://www.irs.gov/forms-pubs/about-form-8805
1040NR
https://www.irs.gov/forms-pubs/about-form-1040-nr
Passive Activity Losses (PALs)
https://www.investopedia.com/terms/p/passive-activity-loss-rules.asp
Schedule A
https://www.irs.gov/forms-pubs/about-schedule-a-form-1040
Schedule C
https://www.irs.gov/forms-pubs/about-schedule-c-form-1040
Section 105
https://www.irs.gov/pub/irs-drop/rr-03-102.pdf
Tax Cuts and Jobs Act (TCJA)
https://www.irs.gov/tax-reform
26 U.S. Code Section 280A
https://www.law.cornell.edu/uscode/text/26/280A
Bonus Depreciation
https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act
Depreciation Recapture
https://www.investopedia.com/terms/d/depreciationrecapture.asp
Healthcare Reform (Affordable Care Act)
https://www.healthcare.gov/
Credits and Deductions
https://www.irs.gov/credits-deductions-for-individuals
Anderson Advisors
https://andersonadvisors.com/
Anderson Advisors Events
https://andersonadvisors.com/all-events/
Events@andersonadvisors.com
Anderson Advisors Tax and Asset Protection Event
https://andersonadvisors.com/asset-protection/
Tax-Wise Workshop
https://andersonadvisors.com/tax-wise-workshop/
Anderson Advisors on YouTube
https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ
Anderson Advisors on Facebook
https://www.facebook.com/AndersonBusinessAdvisors/
Anderson Advisors Podcast
https://andersonadvisors.com/podcast/
