Michael J. Berger and Co. CPA's LLP

Required minimum distributions. If you are age 72 or older, you must once again plan to take the minimum required distribution from your retirement account in 2021. The one-year waiver of this required distribution is now over.

The IRS says you should retain documentation for as long as they are needed to support your tax return. Normally tax records should be kept for three years from the later of the tax filing due date, the date you filed your taxes, or the date you paid your tax in full. But be careful, others may want it for a longer period of time.

Here's What The May 17 Deadline Means For Your Taxes https://bit.ly/32o3YsI We offer accounting services. Visit us at https://www.bergercpa.com for more information.... #MichaelJBergerandCo #accountingservices #shirley See more

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company. Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit single-member LLCs, those having only one owner.

A transferred basis is the basis of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner's basis in the property is transferred to the taxpayer. Transferred basis occurs in the following transactions: GIFTS, transfers in trusts, certain transfers to controlled CORPORATIONS, contributions to PARTNERSHIPS and LIQUIDATING distributions from a corporation.

The C corporation is the standard (or default) corporation under IRS rules. The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages. Both business structures get their names from the parts of the Internal Revenue Code that they are taxed under.

If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES.

S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.

One of the main benefits of turning your hobby into a business is deducting all your qualified business expenses, even if it results in a loss. However, if you don’t properly transition your hobby into a business in the eyes of the IRS, you could be waving a red flag that reads, Audit Me! The agency uses several criteria to distinguish whether an activity is a hobby or a business.

New things taxpayers should consider as they get ready to file taxes in 2021 https://bit.ly/3mNuweJ We offer accounting services. Visit us at https://www.bergercpa.com/ for more information. #MichaelJBergerandCoCPALLP #accountingfirm #usa

Owner Spotlight: Michael J. Berger https://bit.ly/39DwKc2 We offer accounting services. Visit us at https://www.bergercpa.com/ for more information. #MichaelJBergerandCo #accountingfirm #ronkonkoma

PPP Loan Expenses Are Now Tax Deductible. If you or your business received funds from the Paycheck Protection Program (PPP), the recently passed Emergency Coronavirus Relief Act of 2020 will help to dramatically cut your tax bill.

Fast Fact: Taxpayers that are married may file a JOINT RETURN, therefore combining their INCOME and expenses.

Fast Fact: Passive Income includes income derived from such sources as dividends, interest, royalties, rents, amounts received from personal service contracts, and income received as a beneficiary of an estate or trust.

Your home. Your office. Are they one and the same? If so, you may be able to take a home-office deduction that can save income and self-employment taxes. The deduction gives you the opportunity to claim expenses related to the business use of your home, such as utilities, repairs, and insurance. Meet the requirements, and you're eligible whether you rent or own your home. Taxpayers who qualify may use a simplified deduction calculated at $5 a square foot for up to 300 square feet of an area in a home that is used regularly and exclusively for business. The deduction is capped at $1,500 a year.

2021 HSA contributions numbers for an individual with family coverage under a qualifying high-deductible health plan (deductible not less than $2,800) can contribute up to $7,200 up $100 from 2020 for the year. The maximum out-of-pocket has been capped at $14,000