Our Blog
Picking a Lane
Ernie Neve, CPA
May 25, 2022
As you can probably imagine, I get asked ALL the time about investments, especially from folks like you. They might have a 401(k), or even a pension, but they’re smart enough to know those won’t be enough.
“Should I invest in crypto?”
“What about real estate?”
“Precious metals?”
“Bonds in...
IRS Says Your Independent contractors are employees: Use the CSP
Ernie Neve, CPA
May 18, 2022
The IRS Classification Settlement Program (CSP) offers a chance to settle your employment tax debt due to worker misclassification if you do not qualify for Section 530 relief.
CSP agreements typically result in a substantial reduction of assessed employment taxes, especially if you misclassified workers over several years.
The CSP allows you and...
Donor-Advised Funds: A Tax Planning Tool for Church and Charity Donations
Ernie Neve, CPA
May 11, 2022
Do you give money to your church?
Do you get a tax benefit from those donations?
How about your donations to other charities?
Recent changes in the tax code have done much to destroy your benefits from church and other tax-deductible 501(c)(3) donations. But there’s a way to donate the way you want, get revenge on the...
Are You Done Yet?
Ernie Neve, CPA
May 4, 2022
Now that most of us have made it through tax season, let me ask you a question:
Are you tired of the stress? I mean, some of it you’ll never get rid of – it’s just the nature of the beast for us as business owners.
In this instance, I’m talking about the stress that taxes and tax season brings on many business owners.
First of all,...
Grouping: Tax Strategy for Owners of Multiple Businesses
Ernie Neve, CPA
April 27, 2022
When you own more than one business, you need to consider the grouping rules that apply for passive-loss purposes.
Should one of your businesses lose money, you may not deduct the losses from that business during the current tax year unless you
1. materially participate in the business or, if grouped, materially...
Avoid This Payroll Tax Nightmare
Ernie Neve, CPA
April 20, 2022
Don’t let this happen to you.
Here’s what happened to Mr. Kazmi. First, a little background.
Urgent Care Center Inc., an Illinois corporation, employed Mr. Kazmi as a part-time hourly bookkeeper.
· He had no ownership interest in Urgent...
Tax Issues When Your Vacation Home Is a Rental Property
Ernie Neve, CPA
April 13, 2022
If you have a home that you both rent out and use personally, you have a tax-code-defined vacation home.
Under the tax code rules, that vacation home is either
- a personal residence, or
- a rental property.
The tax code classifies your vacation home as a rental property if
- you rent it out for more...
It's Tax Filing Season-Mail Correctly to Avoid IRS Trouble
Ernie Neve, CPA
April 6, 2022
You have heard the horror stories about mail sent to the IRS that remains unanswered for months. Reportedly, the IRS has mountains of unanswered mail pieces in storage trailers, waiting for IRS employees to process them.
Because the understaffed IRS is having so much trouble processing all the documents it receives, you need to protect yourself when you send an...
Tax Treatment of Employer-Provided Meals: What's New?
Ernie Neve, CPA
March 30, 2022
Many employers are struggling to hire and retain employees during the COVID-19 pandemic and the resulting “great resignation.”
If you’re one of those employers (or about to become one), examine your use of tax-free fringe benefits. It’s one of the proven ways to help keep good employees. Such benefits are deductible by you, the employer, but...
Entertainment Facility: Perk for You, Your Net Worth, and Your Employees
Ernie Neve, CPA
March 23, 2022
Imagine this: your Schedule C business buys a home at the beach, uses it solely as an entertainment facility for business, pays off the mortgage, and deducts all the expenses.
Now say, 10 years later, without any tax consequence to you, you start using the beach home as your own.
Is this possible? Yes. Are there some rules on this? Yes. Are the...
Avoid the Self-Rental Trap
Ernie Neve, CPA
March 16, 2022
Let’s say you own the building.
Now, let’s say that you rent this building to your business.
With no tax planning, you have a self-rental, and that
- makes rental income from this building nonpassive, meaning that it cannot offset any passive losses (very bad); and
- makes rental losses from this...
IRAs for Kids
Ernie Neve, CPA
March 9, 2022
Working at a tender age is an American tradition. What isn’t so traditional is the notion of kids contributing to their own IRA, especially a Roth IRA. But it should be a tradition, because it’s a really good idea.
Here’s what you need to know about IRAs for kids. Let’s start with the Roth IRA option.
Roth IRA Contribution...
Tax Implications of Investing in Precious Metal Assets
Ernie Neve, CPA
March 2, 2022
These days, some IRA owners and investors may be worried about being overexposed to equities. That could be you.
But the safest fixed income investments (CDs, Treasuries, and money-market funds) are still paying microscopic interest rates.
For example, when this was written, the 10-year Treasury was yielding about 1.92 percent....
Don't Rob Yourself of the Home Internet Deduction
Ernie Neve, CPA
February 23, 2022
If you do some work at home, you’re probably using your home internet connection. Are your monthly internet expenses deductible? Maybe.
The deduction rules depend on your choice of business entity (proprietorship, corporation, or partnership).
Deduction on Schedule C
If you operate your business as a sole...
Big Tax Break: Qualified Improvement Property
Ernie Neve, CPA
February 16, 2022
Do you own or lease non-residential (think commercial) real property for your business or rent non-residential real property to others?
If so, interior improvements you make to the property may be fully deductible in a single year instead of over multiple years.
But to be deducted instantly, the improvements must fit into the category that the tax...
Two Answers about Selling Your Home to Your S Corporation
Ernie Neve, CPA
February 9, 2022
The strategy behind creating an S corporation and then selling your home to that S corporation comes into play when
you want to convert your home to a rental property and take advantage of the exclusions, or
you need more time to sell the home to realize the benefits of the $250,000 exclusion ($500,000 if filing a joint return).
With this...
Owe Taxes for Misclassified Workers? Section 530 to the Rescue!
Ernie Neve, CPA
February 2, 2022
As a business owner, you are obligated to collect and remit payroll taxes for your employees. But you are not required to collect and remit payroll taxes for independent contractors.
That’s why it’s important to correctly classify workers as either employees or independent contractors.
But here’s the problem: the rules for...
Depreciating Residential Rental and Commercial Real Property: Avoid Surprises
Ernie Neve, CPA
January 26, 2022
When you own rental property, depreciation is your best friend.
One reason depreciation is so valuable is that, unlike deductible rental property expenses such as interest and maintenance, you get to claim depreciation year after year without having to pay anything beyond your original investment in the property.
Moreover, rental real property...
Know This If You Have Rental and Personal Use of a Vacation Home
Ernie Neve, CPA
January 19, 2022
When you use a home for both rental and personal use, regardless of that home’s location at the beach or in the city, you run into the tax code’s vacation home rules that make that home either a residence or a rental property.
It’s a residence when you
rent it for more than 14 days during the year and
use it for personal...
Paying for College-a Handy-Dandy Strategy
Ernie Neve, CPA
January 12, 2022
The tax code says, “The term ‘net earnings from self-employment’ means the gross income derived by an individual from any trade or business carried on by such individual . . .”
The Supreme Court ruled that to be in a trade or business, you need to be involved with continuity and regularity and that a sporadic activity does not...
Self-Directed IRAs: Are They for You?
Ernie Neve, CPA
January 5, 2022
Tax-advantaged retirement accounts such as IRAs are a great way to save for retirement.
But when you establish a traditional IRA with a bank, a brokerage, or a trust company, you are ordinarily limited to a narrow range of investment options, such as CDs, publicly traded stocks, bonds, mutual funds, and ETFs. The IRA custodian will not permit you to invest in...
Little-Known Rule Can Reduce Your Principal Residence Tax Break
Ernie Neve, CPA
December 29, 2021
Once upon a time, you could convert a rental property or vacation home into your principal residence, occupy it for at least two years, sell it, and take full advantage of the home sale gain exclusion privilege of $250,000 for unmarried individuals or $500,000 for married joint-filing couples.
Unfortunately, legislation enacted back in 2008 included an unfavorable...
Make Extra "Catch-Up" Contributions to Retirement Accounts: We Quantify the Benefit
Ernie Neve, CPA
December 22, 2021
After reaching age 50, you can make additional “catch-up” contributions to certain types of tax-advantaged retirement accounts. For the 2021 tax year, this opportunity is available if you’ll be age 50 or older on Friday, December 31, 2021.
Specifically, with an employer-sponsored 401(k), 403(b), 457, or SIMPLE plan, you can make extra salary-reduction...
Selling Appreciated Land? Use the S Corporation to Lock in Favorable Capital Gains Treatment
Ernie Neve, CPA
December 15, 2021
Real estate values have surged in many parts of the country and are still surging in some areas. That’s good news if you’ve been holding raw land for investment.
You might be ready to cash in by subdividing and developing your acreage and selling off parcels for big profits. Great, but what about taxes?
Good question, because...
Tax Credits for Schedule C Business Owners with Employees
Ernie Neve, CPA
December 8, 2021
If you hire an employee for your Schedule C business, you can qualify for several valuable tax credits.
Each credit is different, and certain limitations apply to all or most employer tax credits.
Remember, tax credits are the best. They beat deductions. Note the difference below (using the 32 percent bracket):
A $1,000...
When Is a Partner in a Partnership a 1099 Worker?
Ernie Neve, CPA
December 1, 2021
When the individual production activity of a partner is outside his or her capacity as a member of the partnership, the partnership has two choices:
Allocate the production income to the partner, and have the partner treat the expenses as unreimbursed partner expenses (UPE).
Treat the partner as a 1099 independent contractor for the individual production.
2021 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family
Ernie Neve, CPA
November 24, 2021
If you are thinking of getting married or divorced, you need to consider December 31, 2021, in your tax planning.
Here’s another planning question: Do you give money to family or friends (other than your children, who are subject to the kiddie tax)? If so, you need to consider the zero-taxes planning strategy.
And now, consider your children...
2021 Last-Minute Year-End Medical Plan Strategies
Ernie Neve, CPA
November 17, 2021
All small-business owners with one to 49 employees should have a medical plan for their business.
Sure, it’s true that with 49 or fewer employees, the tax law does not require you to have a plan, but you should.
Most of the tax rules that apply to medical plans are straightforward when you have 49 or fewer...
2021 Last-Minute Year-End General Business Income Tax Deductions
Ernie Neve, CPA
November 10, 2021
The purpose of this letter is to get the IRS to owe you money.
Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes.
Here are six powerful business tax deduction strategies that you can easily understand and implement...
2021 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
Ernie Neve, CPA
November 3, 2021
When you take advantage of the tax code’s offset game, your stock market portfolio can represent a little gold mine of opportunities to reduce your 2021 income taxes.
The tax code contains the basic rules for this game, and once you know the rules, you can apply the correct strategies.
Here’s the basic...
Be Sure to Know the Tax-Home Rule
Ernie Neve, CPA
October 27, 2021
When you travel out of town overnight, you need to know the tax-home rule. The IRS defines your tax home, and it’s not necessarily in the same town where you have your personal residence.
If you have more than one business location, one of the locations will be your tax home. It’s generally your main place of business.
In determining...
How Are Roth IRA Withdrawals Taxed
Ernie Neve, CPA
October 13, 2021
Some withdrawals are taxable.
Even worse, some can be socked with a 10 percent early withdrawal penalty tax, and this can happen even when there’s no income tax hit.
Any withdrawals from any of your Roth accounts are federal-income-tax-free qualified withdrawals if you, as a Roth IRA owner,
are age 59 1/2 or older,...
Ready, Set, Depreciate
Ernie Neve, CPA
October 6, 2021
Are you thinking about buying personal property (such as a car, a computer, or other equipment) or real property (such as a building)?
If you use the property for personal purposes, it’s not deductible.
But if you use it in a business, you can deduct the full cost using regular depreciation, bonus depreciation, or IRC Section 179...
Why IRS Audit Technique Guides Are Helpful Business Resources
Ernie Neve, CPA
September 29, 2021
As a business owner, you are in partnership with the IRS, like it or not.
You share your net profits with the IRS according to your partnership agreement (known to you as the Internal Revenue Code).
To make sure you are sharing fairly, the IRS can audit your tax return. You have to hate the idea of an IRS audit.
But your big...
Are You Done Yet?
Ernie Neve, CPA
September 22, 2021
Now that most of us have made it through tax season, let me ask you a question:
Are you tired of the stress? I mean, some of it you’ll never get rid of – it’s just the nature of the beast for us as business owners.
In this instance, I’m talking about the stress that taxes and tax season brings on many business owners.
First of all,...
Is a Property Fix-up and Sale an Investor or a Dealer Property?
Ernie Neve, CPA
September 15, 2021
If you buy a property, fix it up, and then sell it, is that property a dealer or an investor property?
Here are five thoughts on this:
1.) Periodically buying property, fixing it up, and selling it makes it look like dealer property. But when you seldom do this, the property can look like investor property.
2.) If you hold the property for more than a year from...
1099s Tell Story on Dentist
Ernie Neve, CPA
September 9, 2021
Here’s a sad story of a dentist who did not file his tax returns.
Of course, as you know, the failure to file tax returns often gets the IRS’s attention. In this case, it did, and this dentist suffered accordingly.
The IRS used the 1099s issued to this dentist by insurance companies and some of the insurance company checks he cashed to identify...
Raise Hell: Save Your Employee Retention Credit
Ernie Neve, CPA
September 7, 2021
In what clearly must be a mistake, the IRS issued Notice 2021-49 to deny the employee retention credit (ERC) on the wages paid to most C and S corporation owners.
According to the IRS:
Your corporation can qualify for the ERC on the wages paid to a more than 50 percent owner of an S or C corporation if that owner does not have any living brothers...
Don't Miss Out on the Employee Retention Credit
Ernie Neve, CPA
September 2, 2021
It’s hard to imagine that a small business does not qualify for some or all of the employee retention credit (ERC).
And remember, this is a tax credit—one of the very best things that tax law has to offer. True, it’s not as valuable as some other tax credits, because you have to reduce your payroll income tax deductions for the credits, but the ERC certainly...
Loophole: Harvest Tax Losses on Bitcoin and other Cryptocurrency
Ernie Neve, CPA
August 31, 2021
Here’s something to know about cryptocurrencies.
Because cryptocurrencies are classified as “property” rather than as securities, the wash-sale rule does not apply if you sell a cryptocurrency holding for a loss and acquire the same cryptocurrency before or after the loss sale.
You just have a garden-variety short-term or long-term capital...
Don’t Be Afraid To Win
Ernie Neve, CPA
August 26, 2021
2021 has been an extremely strange year, and with every passing day, there’s no end of just how odd things seem to be these days.
…But that’s not an excuse.
In fact, it’s a great opportunity for you.
No matter what you do – your job, your career, your family situation – you have the chance to make 2021 a great year. ...
Finishing Strong?
Ernie Neve, CPA
August 24, 2021
Now that fall is rapidly approaching – even though it might not feel like it – I’ve got to ask you a question: What are you doing to ensure that this year is STILL a great year for you?
It’d be far too easy to point to the headlines in the news and simply use them as an excuse, but would it be the truth?
Only you and your dedication to your business and...
Why Don’t I Teach More?
Ernie Neve, CPA
August 19, 2021
I get a lot of messages from clients about the material I often share with you guys, and a recurring theme seems to be “Why don’t you teach more ‘tax tips’ each month?”
There’s actually more than one answer to that question, but the main one is the easiest – we’re professionals, and our clients come to us because of that. In...
Keep The Pedal DOWN!
Ernie Neve, CPA
August 17, 2021
I know a LOT of companies that have been forced to rethink entire business models or their ideal clients are simply not able to make purchases.
What about those companies?
Well, if the problem you’re having isn’t generating sales but generating leads, there still plenty of solutions, but the underlying point stays the same – those leads have to be converted...
Will You See A COLA This year?
Ernie Neve, CPA
August 12, 2021
For a lot of employees in more traditional industries and for those who receive Social Security benefits, a lot of people expect to see a cost-of-living adjustment (COLA) either annually or every other year. Is this year any different?
In a lot of ways, 2020 screwed up COLA for a bunch of people.
Not only is the data that businesses and the...
Back to Work? Check your Check!
Ernie Neve, CPA
August 10, 2021
With so many people in new jobs, working from home, or entering the so-called “gig” economy due to the pandemic and the subsequent economic recovery, it’s time to remind you to make sure your deductions are correct.
There’s no worse feeling than receiving your W2 in the mail only to find out that your company hasn’t been taking the proper...
What To Do With Your House
Ernie Neve, CPA
August 5, 2021
It’s hard to believe the difference a year can make. This time last year, the world was practically locked down, and now? Economies are opening, people are getting back to work and production of nearly everything is running as quickly as companies are staffed to produce things.
The exact same thing is happening in the housing market.
Incredibly...
Should You Be Worried About Your 401(k)?
Ernie Neve, CPA
August 3, 2021
If you follow the financial markets – even for a company 401(k) – you’ve probably noted that there are some challenges going on right now.
Not only are the markets up and down on a near-daily basis, investors are freaking out about crypto-currency, financial naysayers are encouraging you to invest in precious metals and bonds, and – more than usual...
A Real Zombie Problem?
Ernie Neve, CPA
July 29, 2021
Despite what the movies would have you think, there’s a very real zombie problem in the United States that only a few people understand BUT one that can have a hugely negative impact on homeowners.
Zombie Mortgages.
I know how it sounds, but the reality is this: in the Great Recession, many mortgage companies who held second positions on mortgages went...
Rethinking the Job You Do or Rules For Enjoying The Job
Ernie Neve, CPA
July 27, 2021
Stop me if you’ve heard this one, “I like my job, but…” It’s a hard truth that a lot of us like parts of the jobs we’re paid for, but accept that our jobs have plenty of things we don’t like about them, too.
Over the years, as I’ve interacted with people from all walks of life, I’ve come to the realization that it...
Greed or Fear?
Ernie Neve, CPA
July 22, 2021
People of a certain age will remember Michael Douglas as Gordon Gekko in Wall Street and one of his most famous lines…
“The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money,...
Rethinking The Customer
Ernie Neve, CPA
July 20, 2021
A lot of folks probably looked at the title of this post and cringed - “Rethinking the Customer? They’re not the problem!”
I get it, it seems like the wrong thing to do … but it’s not.
The entire process your business follows, after all, is about the customer, right? They already exist and they understand, at least intuitively,...
Rethinking The Management Position
Ernie Neve, CPA
July 15, 2021
Many, many times, in speaking with business owners, I hear the stories of how they inadvertently created a system – big or small – and even though the system isn’t a good one, they have trouble “fixing” it.
It’s even worse when the business has some size to it – managers don’t acknowledge change or are reluctant to change, and even...
How the Law Decides If Your Travel Day Is Personal or Business
Ernie Neve, CPA
July 13, 2021
When you travel to a business location where you spend the night, you are in travel status. But will the tax rules make this a business or personal night?
The rules also affect your costs during the day. When you have an overnight business travel day, you generally deduct your costs of sustaining life for the day, such as breakfast, lunch, dinner, snacks, drinks,...
4 Steps to Start Your Local Business
Courtney Rosenfeld -GIG SPARK
July 9, 2021
4 Steps to Start Your Local Business
The Neve Group knows that local businesses are the heart and soul of our community. If you want to join the ranks of other local small business owners, there are a few things you need to know first. These resources will help first-time business owners take the required steps to get their...
New Law: Time to benefit from the Work Opportunity Tax Credit
Ernie Neve, CPA
July 8, 2021
The Work Opportunity Tax Credit rewards your good deeds.
And now, because of new legislation, the rules are in place for longer than usual.
If you need to hire workers in your business, this dollar-for-dollar reducer of your taxes is one to know about.
Suppose your business hires a member of a targeted group. In that case,...
IRS Focuses on Cryptocurrency: Are You Ready?
Ernie Neve, CPA
July 6, 2021
Cryptocurrencies have gone mainstream.
For example, you can use bitcoin to buy far more than you would think. To see, try googling “What can I buy with bitcoin?” You will get more than 350,000 hits.
But using cryptocurrencies has federal income tax implications that may surprise you.
With the price of bitcoin...
Congress Closes the PayPal 1099-K Reporting Loophole
Ernie Neve, CPA
July 1, 2021
The PayPal loophole is going away in a little over six months from now.
You may remember the strategy where you can avoid giving 1099s to contractors and vendors when you use PayPal or a similar service as your payment platform.
With this strategy, you push the reporting requirements to PayPal. Current federal law requires that PayPal file Form 1099-K with the...
IRS Audit Issue: SUV Built on a Car Chassis
Ernie Neve, CPA
June 29, 2021
Here’s a vehicle story that you will find of interest.
Taxpayer DJ is in an IRS audit of his 2018 tax return. It is now at the IRS appeals level.
The vehicle in question is an SUV with a curb weight of 5,700 pounds and a gross vehicle weight of 6,100 pounds.
If the tax code makes the SUV a passenger vehicle, the curb weight of 5,700...
IRS Arrives with Tax Assessor's Allocation to Land and Building
Ernie Neve, CPA
June 24, 2021
When you buy business or investment real property, such as an apartment building, you usually pay one lump sum for land, buildings, and other improvements. There’s no cost breakdown.
You can’t depreciate land because it doesn’t wear out. So, as far as depreciation goes, land is useless.
What you need is a way to take that lump sum and...
Do You Owe the Nanny Tax?
Ernie Neve, CPA
June 22, 2021
The tax law can jump up and bite you in unexpected places. One example of that is the nanny tax.
Do you have a household employee such as a nanny, a caregiver for an elderly relative who moved in with you during the pandemic, or a live-in housekeeper?
You may have hired somebody to help out during difficult circumstances caused by the COVID-19 mess.
Self-Employed During the Pandemic? Washington Did Not Forget You.
Ernie Neve, CPA
June 17, 2021
As you likely know, in times of economic dislocation such as the COVID-19 pandemic, the self-employed get no special government help. For example, you generally do not receive benefits that employees get, such as unemployment and paid sick leave.
But this time it’s different. Because of the COVID-19 pandemic, you can qualify for the following seven benefits:
IRS Defines Real Property for Section 1031 Like-Kind Exchanges
Ernie Neve, CPA
June 15, 2021
Do you own business or investment property that has gone up in value? Would you like to acquire new property?
If you sell the old property, you’ll have to pay tax on your profits. Don’t do that. Instead, do a tax-deferred Section 1031 transaction.
With a properly constructed Section 1031 transaction,...
How Renovating a Historic Building Can Put Money in Your Pocket
Ernie Neve, CPA
June 10, 2021
The federal Rehabilitation Tax Credit, or rehab credit, offers significant financial incentives for owners and leaseholders of historic buildings to renovate those structures.
What’s the big deal? Why are tax credits so exciting?
Tax credits, unlike deductions, reduce your tax bill dollar-for-dollar. If you spend $100,000 and get a 20 percent tax credit, you reduce your...
Deduct 100 Percent of Your Business Meals under New Rules
Ernie Neve, CPA
June 8, 2021
Since 1986, lawmakers have limited business meal deductions: first to 80 percent, and then to 50 percent (unless an exception applies).
But on December 27, 2020, in an effort to help the restaurant industry due to the COVID-19 pandemic, lawmakers enacted a new, temporary 100 percent business meal deduction for calendar years 2021 and 2022.
To...
Deduct 100% of Your Employee Recreation & Parties
Ernie Neve, CPA
June 3, 2021
When you know the rules, you can party with your employees and deduct 100 percent of the cost.
The IRS says that the following types of entertainment qualify for the 100 percent employee entertainment tax deduction:
· Holiday parties, annual picnics,...
Know These Four Business Mileage Rules
Ernie Neve, CPA
June 1, 2021
When you know the rules related to business mileage, you
protect yourself in the event of an IRS audit, and
pay less tax.
Take Henry, for example. Before he knew the mileage rules, he deducted 30 percent of his SUV’s cost. Once he learned the rules, he deducted 92 percent.
Or look at poor Mark—he lost almost...
Disaster Strikes: Next Trouble, an IRS Audit
Ernie Neve, CPA
May 27, 2021
Disasters such as storms, fires, floods, freezes, and hurricanes can damage or destroy vital business records.
You need accounting and tax records not only to file your taxes (including claims for casualty losses), but to file insurance claims, bill clients, pay bills, obtain loans, deal with federal and state audits, determine business cash flow and solvency, and...
PPP Extended—Act Fast or Miss Out
Ernie Neve, CPA
May 25, 2021
This is likely it—your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies.
A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out. Note the phrase “when the money runs out,” and be forewarned that this can happen within weeks. So don’t...
Can You Claim the ERC for the Owner of a C or S Corporation?
Ernie Neve, CPA
May 20, 2021
Members of the tax community struggle with the “solo corporate owner” qualification for the employee retention credit (ERC).
The IRS in one of its answers to frequently asked questions explains the rule as follows:
59. Are wages paid by an employer to employees who are related individuals considered qualified wages?
No. Wages paid to related...
Double Benefits: Claiming Both the ERC and Tax-Free PPP
Ernie Neve, CPA
May 18, 2021
First, say thanks to the Consolidated Appropriations Act, 2021 (CAA), enacted December 27, 2020. It opened the door (retroactively and going forward) for Paycheck Protection Program (PPP) participants to also claim the employee retention credit (ERC).
Reminder. Tax credits are the best. They usually reduce taxes dollar-for-dollar.
(The ERC is not...
Starting a New Business? Get Up to $100,000 in Tax-Free Money
Ernie Neve, CPA
May 13, 2021
You likely already know that the employee retention credit (ERC) is a good deal—if you qualify.
Now, thanks to the recently enacted American Rescue Plan Act of 2021 (ARPA), you can qualify for up to $100,000 of ERC in the third and fourth quarters of 2021 if you
begin the business after February 15, 2020 (you could start...
Employee Retention Credit: Step-by-Step Example
Ernie Neve, CPA
May 11, 2021
With the Consolidated Appropriations Act, 2021, millions of small-business owners like you now qualify for the employee retention credit (ERC), thanks to three big changes:
You can now obtain the ERC and the Paycheck Protection Program loan, but not on the same wages.
This new rule applies retroactively to 2020.
The new law adds an enhanced ERC for 2021.
ARPA Ends Dreaded Cliff for Health Insurance Premium Tax Credit
Ernie Neve, CPA
May 6, 2021
With the passage of the American Rescue Plan Act of 2021 (ARPA), Congress has temporarily abolished the health insurance premium tax credit “subsidy cliff.”
For 2020 and 2021, self-employed and small-business owners and other individuals who must purchase individual health insurance may qualify for premium tax credit health insurance subsidies even if their...
Wow! Married, Filing Separately, May Be the Tax Year 2020 Strategy
Ernie Neve, CPA
May 4, 2021
If you are married, most likely you’ve always filed a joint tax return with your spouse.
Most of the time, a joint return shows less overall tax than two separate tax returns do, because the married-filing-separately status has many tax disadvantages.
Fast-forward to the 2020 tax filing season, however—and nothing is as it...
ARPA Adds Cash to the Child Tax Credit (2021 Only)
Ernie Neve, CPA
April 29, 2021
For the 2021 tax year only, the American Rescue Plan Act of 2021 (ARPA) makes big, taxpayer-friendly changes to the federal income tax child tax credit (CTC).
Here’s what you need to know, starting with some necessary background information.
CTC Basics
For 2018-2020 and 2022-2025, the maximum annual CTC is $2,000 per...
ARPA Adds Dollars to the Child and Dependent Care Tax Credit
Ernie Neve, CPA
April 27, 2021
The American Rescue Plan Act of 2021 (ARPA) makes major, but temporary, changes to the federal income tax child and dependent care credit (CDCC).
Except for when it comes to high-income taxpayers, the changes are all favorable.
To understand the changes, let’s first review the basics. Here goes.
CDCC...
Tax Bonanza: Expanded Individual Tax Credits in New Law
Neve
April 22, 2021
For tax year 2021, Congress is giving away billions of dollars in additional tax credits on your Form 1040 individual tax return.
These temporarily expanded tax credits include the child tax credit, the dependent care credit, and the health insurance premium tax credit.
With good planning on your end—which you have more control over than...
ARPA Liberalizes the Earned Income Tax Credit Rules
Neve
April 20, 2021
The earned income tax credit (EITC) has been around for years. But for some folks, it’s never been worth as much as it will be for 2021.
That’s thanks to liberalizations included in the American Rescue Plan Act of 2021 (ARPA). Some of the favorable changes are only for the 2021 tax year. Others are permanent.
EITC...
IRS has refunds totaling $1.3 billion for people who have not filed a 2017 federal income tax return
Ernie Neve, CPA
April 15, 2021
Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040 federal income tax return, according to the Internal Revenue Service.
“The IRS wants to help taxpayers who are due refunds but haven’t filed their 2017 tax returns yet,” said IRS Commissioner Chuck...
IRS provides guidance for employers claiming the Employee Retention Credit for first two quarters of 2021
Ernie Neve, CPA
April 13, 2021
The Internal Revenue Service today issued guidance for employers claiming the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act).
Notice 2021-23 explains the changes to the Employee Retention Credit for the first two calendar quarters...
Join the Taxpayer Advocacy Panel and help improve the IRS; apply by May 14
Ernie Neve, CPA
April 8, 2021
The Internal Revenue Service today announced it is seeking civic-minded volunteers to serve on the Taxpayer Advocacy Panel (TAP).
The TAP is a federal advisory committee that listens to taxpayers, identifies major taxpayer concerns and makes recommendations for improving IRS service and customer satisfaction.
Taxpayers interested in serving on the...
Treasury disburse more Economic Impact Payments under the American Rescue Plan; total tops 130 million with more to come
Ernie Neve, CPA
April 6, 2021
Today, the Internal Revenue Service, the U.S. Department of the Treasury and the Bureau of the Fiscal Service announced they are disbursing several million more payments in the third batch of Economic Impact Payments from the American Rescue Plan. This brings the total disbursed so far to more than 130 million payments worth approximately $335...
IRS projects stimulus payments to non-filer Social Security and other federal beneficiaries will be disbursed later this week
Ernie Neve, CPA
April 1, 2021
As work continues on issuing millions of Economic Impact Payments to Americans, the Internal Revenue Service and Treasury Department announced today that they anticipate payments will begin to be issued this weekend to Social Security recipients and other federal beneficiaries who do not normally file a tax return, with the projection that the majority of these payments would...
Emergency aid granted to students due to COVID are not taxable
Ernie Neve, CPA
March 30, 2021
The Internal Revenue Service issued frequently asked questions today on how students and higher education institutions should report pandemic-related emergency financial aid grants.
Students
Emergency financial aid grants made by a federal agency, state, Indian tribe, higher education institution or scholarship-granting organization (including a tribal...
IRS extends additional tax deadlines for individuals to May 17
Ernie Neve, CPA
March 25, 2021
The Internal Revenue Service today announced that individuals have until May 17, 2021 to meet certain deadlines that would normally fall on April 15, such as making IRA contributions and filing certain claims for refund.
This follows a previous announcement from the IRS on March 17, that the federal income tax filing due date for individuals for the...
IRS to recalculate taxes on unemployment benefits; refunds to start in May
Ernie Neve, CPA
March 23, 2021
To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.
The legislation, signed on March 11, allows taxpayers who earned less than $150,000 in modified...
Deducting Disaster Losses for Individuals
Ernie Neve, CPA
March 18, 2021
We seem to be living in an age of natural disasters. Floods, fires, hurricanes, tornados, and other disasters often dominate the news.
If a disaster strikes you, the tax law may help.
You may qualify to deduct a tax code-defined disaster loss from your taxable income. The rules for personal losses are complex and far more restrictive than for...
Update: COVID-19 Tax Relief Measures after the New Law
Ernie Neve, CPA
March 16, 2021
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) made many temporary changes in the tax law. The new Consolidated Appropriations Act (CAA) adjusted some of these and left others to die on December 31, 2020.
With all the changes that took place in 2020, I thought you would like to be informed of the following insights.
Borrow...
Business Tax Breaks Thanks to the Recently Enacted CAA
Ernie Neve, CPA
March 11, 2021
When you operate a business, you have a variety of tax breaks available.
The recently enacted Consolidated Appropriations Act extends and expands some of the breaks. We bring the following selection of them to your attention as a tax-strategy buffet.
You can deduct 100 percent of your dine-in and take-out business meals that are provided by...
Deducting Business Casualty Losses: You Don’t Need a Disaster
Ernie Neve, CPA
March 9, 2021
Disasters such as storms, fires, floods, and hurricanes damage or destroy property.
If property such as an office building, rental property, business vehicle, or business furniture is damaged or destroyed in a disaster, your business may qualify for a casualty loss deduction.
It’s easier to deduct business casualty losses than personal...
QBI Update: Impact of Negative QBI and Previously Suspended Losses
Ernie Neve, CPA
March 4, 2021
For 2018-2025, you (and estates and trusts) can use your qualified business income (QBI) to create the 20 percent deduction under Section 199A.
While federal income tax losses from business activities are usually beneficial, losses from pass-through business entities can have the adverse side effect of reducing allowable QBI deductions for pass-through business entity...
Boost QBI: Pay Partners and LLC Members Preferred Returns
Ernie Neve, CPA
March 2, 2021
With all that’s been going on, it’s easy to forget that it’s Section 199A season again. Yes, we’re talking about that lovely 20 percent deduction.
Are you compensating yourself and your fellow partners or LLC members with so-called guaranteed payments? If so, you may benefit from the following information about those payments and the preferred...
Congress Passes Corporate Transparency Act: What It Means for You
Ernie Neve, CPA
February 25, 2021
If you’ve formed a limited liability company (LLC) or corporation to operate your business or are thinking about doing so, you need to know about the Corporate Transparency Act.
Enacted in January 2021, Congress’s new law will end business owners’ ability to form business entities without revealing their identities to the...
Who Qualifies for First Draw PPP Money Today?
Ernie Neve, CPA
February 23, 2021
Two things to know about the Paycheck Protection Program (PPP) first draw enacted on December 27, 2020:
The first draw is for those who missed getting in on the original PPP, which expired on August 8, 2020.
Don’t think of a PPP draw as a loan. It’s not a loan. It’s a cash infusion. You have to repay a loan. You don’t have to repay the PPP...
COVID-19 Relief Law Turbocharged Employee Retention Credit
Ernie Neve, CPA
February 18, 2021
Before the December 27, 2020, enactment of the new COVID-19 relief law, you may have chosen the Paycheck Protection Program (PPP) loan and given no thought to the employee retention credit.
Remember, under the original law, you had to choose between the retention credit and the PPP loan. Millions chose the PPP loan route.
But now the game has...
If the SBA Makes Loan Payments on Your Behalf, Are You Taxed?
Ernie Neve, CPA
February 16, 2021
Are you one of the millions of businesses that have an outstanding non-disaster Small Business Administration (SBA) loan? These include
· 7(a) loans (general small business loans of up to $5 million),
· 504 loans (loans of up to $5.5 million to provide financing for major fixed assets such...
COVID-19 Relief Law Boosts Temporary Tax Deductions and Credits
Ernie Neve, CPA
February 11, 2021
Embedded in the COVID-19 relief law is $900 billion for financial assistance.
As you would expect in these unusual times, some of the relief is in the form of direct government financial assistance and some is from tax benefits that can impact both tax year 2020 and tax year 2021.
Most of the provisions create extra deductions or credits where...
Lawmakers Extend the Tax Extenders with the COVID-19 Relief Law
Ernie Neve, CPA
February 9, 2021
The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted on December 27, 2020, deals with the annual tax extenders. Congress made some of them permanent, while others got short- or long-term extensions.
These are the big five Form 1040 tax breaks that were scheduled to expire on December 31, 2020:
Exclusion from income for cancellation...
Secrets to IRS Penalty Forgiveness Using Reasonable Cause
Ernie Neve, CPA
February 4, 2021
The IRS can waive penalties it assessed against you or your business if there was “reasonable cause” for your actions.
The IRS permits reasonable cause penalty relief for penalties arising in three broad categories:
Filing of returns
Payment of tax
Accuracy of information
Contrary to what you might think,...
Handling Key Non-Tax Financial Issues When a Loved One Passes Away, Part 3
Ernie Neve, CPA
February 2, 2021
Previously, we sent you emails discussing the tax issues that arise when a financially comfortable loved one has passed away.
In this email, we dive into some of the non-tax issues you will have to deal with as the executor of the estate.
Getting Extra Death Certificates
For various reasons, a death certificate may be needed...
SEP IRA vs Solo 401(k)
Ernie Neve, CPA
January 28, 2021
How do you multiply your net worth?
Let the government help.
Here’s how: with both the SEP IRA and the solo 401(k) retirement plans, your investment in your tax-favored retirement
· creates tax deductions for the money you invest in the...
PPP Alert: New Shot for Your Tax-Free Cash
Ernie Neve, CPA
January 26, 2021
Did you miss out on the first two opportunities to receive your tax-free Paycheck Protection Program (PPP) cash?
Many did miss out. Why?
One reason: the word “loan.”
Who wants a loan? No one. Well, almost no one.
But who wants a cash gift, tax-free?
If you do, read on...
New PPP Forgiveness Rules for Past, Current, and New PPP Money
Ernie Neve, CPA
January 21, 2021
The new Paycheck Protection Program (PPP) law enacted with the stimulus package adds dollars to your pockets if you have or had PPP money.
Before we go further, please note the PPP money comes to you in what appears to be a loan. We say “appears” because you typically pay back a loan.
Done right, however, the PPP loan is 100 percent...
Home-Office Deduction—Show Me the Proof!
Ernie Neve, CPA
January 19, 2021
Question. If you have an office outside your personal home—say, downtown—can you have a tax-deductible office inside your home for the same trade or business?
Answer. Yes.
Q. Who says that?
A. The IRS.
Q. Show me where they say that!
In IRS Publication 587, the IRS...
New Laws—COVID-19-Related Government Grants: Taxable or Not?
Ernie Neve, CPA
January 14, 2021
Billions of dollars in grants are being doled out to individuals and businesses in the wake of the COVID-19 pandemic. The recently enacted second stimulus bill has increased these grants, including $25 billion in rental assistance for individuals, a new round of Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) advances, and new grants for shuttered entertainment venues...
ABLE Accounts: A Great Deal for the Disabled and Their Families
Ernie Neve, CPA
January 12, 2021
Sixty-one million adults and over 12.6 million children in the United States have some type of disability.
If you have a disabled or blind child or other family member, or are disabled or blind yourself, you should know about ABLE accounts. These tax-advantaged accounts can be a real game changer for the disabled.
Ordinarily, a disabled person who...
Tax Considerations When a Loved One Passes Away (Part 2)
Ernie Neve, CPA
January 7, 2021
If you become an executor of your loved one’s estate, you may have some important tax decisions to make. Here are some quick thoughts.
The decedent’s medical expenses provide you with planning opportunities to
· deduct as itemized deductions (subject to the 7.5 percent floor) not only the medical...
New Stimulus Law Grants Eight Tax Breaks for 1040 Filers
Ernie Neve, CPA
January 5, 2021
As you doubtlessly know, Congress recently passed a massive new stimulus bill that was enacted into law on December 27, 2020. Most of the public’s attention has been focused on the bill’s authorization of additional stimulus checks and new PPP loans and other aid targeted to struggling businesses.
But Form 1040 American taxpayers who are not in business are...
Zeroing in on Your 401(k)
Ernie Neve, CPA
December 24, 2020
This month, I’ve been spending a lot of time discussing retirement accounts. It’s no secret, and it’s for a good reason – most Americans don’t know where they’ve put their 401(k) funds.
Seriously. When I was still in the workaday world, I would ask my coworkers about their investment strategies and they either knew exactly what they were...
Financial Leadership in 2021
Ernie Neve, CPA
December 22, 2020
We’re closing out a crazy year and as we send it off, I wanted to beat everyone to the punch about making the most of the new year.
I wanted to discuss something I’m passionate about – finances – and cross reference those into an even bigger piece – leadership.
We’ve all had to learn to stay competitive this year, but many of the...
Life Insurance as a Retirement Plan?
Ernie Neve, CPA
December 17, 2020
Yes, your read the title correctly. Now, first things first, I’m NOT a life insurance specialist, but my industry works closely with a wide range of specialists in the retirement, estate planning, legal, and investment fields.
One of the things I always try to do is to understand how taxpayers can improve their retirement strategies – especially when it’s...
Creating or Consuming?
Ernie Neve, CPA
December 15, 2020
This month, I’ve been concentrating on more intangibles within the ideas of busines success, but before you get toooo critical of me, let me explain my logic:
2020 has changed a lot of things for a lot of people.
If you’re still trying to do “business as usual” with an unchanged model – maybe the same one you opened up with in 2020, then your days...
Getting Clear On Taxes in a Strange New World
Ernie Neve, CPA
December 10, 2020
One of the least common things for many people who get a regular paycheck is a tax bill. Oh, sure, you might have to pay a few hundred dollars once every few years on April 15th, but for the most part, the United States Tax Code is designed to allow you, as a wage earner, to pay throughout the year and not have any unpleasant surprises on Tax Day.
Now, that changed a few...
Going out (of 2021) with a bang!
Ernie Neve, CPA
December 8, 2020
First of all, I completely understand how the holidays and the end of a year like this one can lead to boatloads of stress and overwhelm, but just stick with me for a few minutes…
2021 is coming, and the rules, even though they seem to be in flux in a lot of places, still apply.
Right now, you’ve got to make time to ensure that things like any charitable...
Getting Clear on the End of the Year
Ernie Neve, CPA
December 3, 2020
It’s hard to believe that the longest year ever is finally coming to a close, but thank heavens, it is. No matter how you’ve been impacted, this month, I want you to really drill down and think about the challenges you’ve already overcome and how you might set yourself up for success I the future.
For a lot of employees, they’re primary retirement...
Don’t Let it Overwhelm You
Ernie Neve, CPA
December 1, 2020
We’re in the holiday season, and I hope it’s finding you well!
As you know, though, my team and I meet and discuss all manner of things, both personal and professional, with clients simply in the course of doing business, and more and more often, as 2020 grinds on, the biggest challenges we’re seeing is the hardest to deal with: fatigue.
A “two...
Do This Before the End of the Year!
Ernie Neve, CPA
November 26, 2020
It’s easy to get lost in the holiday spirit – and with the year we’ve all had, many of us are just glad that 2020 is nearly over.
Nevertheless, now is the time to make sure you’ve done all you can to maximize (or minimize) a few things for your savings and your tax bill.
First things first…
Charitable giving. This is the time...
Continuing to Improve, Day After Day
Ernie Neve, CPA
November 24, 2020
So each week this month, I’ve been sharing with you one component of the overall process you can easily use to not only offload work from you personally, but, more importantly, how you can use the systems you’re creating to foster improvements within your business from “average” people.
Now, first things first – there is nothing wrong with...
Hiring a Financial Advisor? Look Here First…
Ernie Neve, CPA
November 19, 2020
It’s no secret that in these emails, month after month, I give out what could be termed “financial advice.” Now, that’s not strictly the case, because I’m not officially a financial advisor, but the team and I get a load of calls from clients asking me who I recommend.
I guard those names closely.
In fact, I’d never simply put out a...
Leading the Orchestra
Ernie Neve, CPA
November 17, 2020
Well, the media never lets up, but, like I mentioned earlier this month, we’re not going to lose focus on the news right now. There will be plenty of time for that soon, so don’t worry about the end of the fiscal year just yet.
I’d like to keep working this week on the topic this month – handling and creating systems for change in your...
Realistic Ideas About Retirement…
Ernie Neve, CPA
November 12, 2020
Recently, it seems we’ve had a great many calls about retirement and those folks all seem to ask the same things when it comes to their planning. Last week, you might remember I shared some ideas about retirement saving and the idea of budgeting in your annual savings just like you might budget in your car payment each month.
This week, though, I want to share some...
Discovering the Metrics
Ernie Neve, CPA
November 10, 2020
Last week, I shared some ideas with you guys about how easy it can be to begin creating management solutions in your business to help you recapture your free time.
Did you get the chance to do any of those last week?
I hope so, because the end result is simple – more time for you to do the work you want to be doing and less – sometimes far less –...
Your Savings Plans For 2021
Ernie Neve, CPA
November 4, 2020
This is the time of year that a lot of folks begin to dig in to their plans for finalizing some of their 2020 contributions and sorting out what – and how much – they can plan on contributing in the New Year.
There’s some news – that might be seen as good OR bad - about that…
For starters, contribution limits are remaining the same for next...
Turn Off the Noise
Ernie Neve, CPA
November 2, 2020
First things first – this month, I’m not spending a single sentence in any of my communications to discuss who won the election, why they won, or if it was a “good” election or a “bad” election.
The news is going to be filled with that for the next month, so spending time rehashing it is wasting time I could be sharing REAL things with...
During this COVID-19 pandemic, landlords have two big possible problems
Ernie Neve, CPA
October 22, 2020
During this COVID-19 pandemic, landlords have two big possible problems:
Tenants who can’t pay the rent.
Tax losses they can’t deduct.
We’ll start with the tenants and then move on to the rental property tax-loss issues.
For the first time in U.S. history, residential landlords are subject to a sweeping...
The Latest Payroll Tax Deferral
Ernie Neve, CPA
October 20, 2020
If you have employees, you must withhold their 6.2 percent share of the Social Security tax from their wages up to an annual wage ceiling ($137,700 for 2020). You must pay the money to the IRS along with your matching 6.2 percent employer share of the tax.
But under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as you likely know, employers are allowed...
You likely formed an S corporation to save on self-employment taxes.
Ernie Neve, CPA
October 15, 2020
You likely formed an S corporation to save on self-employment taxes.
If so, is your S corporation salary
nonexistent?
too low?
too high?
just right?
Getting the S corporation salary right is important. First, if it’s too low and you get caught by the IRS, you will pay not only income taxes and...
Do you have a mileage log that will survive an IRS audit?
Ernie Neve, CPA
October 13, 2020
Do you have a mileage log that will survive an IRS audit? If so, good for you! If not, get ready to give up all (not some, but all) of your vehicle tax deductions for not just one year but three years, as you will see in this true story.
The story is about Therone Johnson, president of Diversified Innovative Products Co, Inc. (Dip Co), a corporation in Colorado that...
You may have taken some extra rooms for your business use. Is that okay?
Ernie Neve, CPA
October 8, 2020
With the COVID-19 pandemic still going on, you may be spending more time working from your home office.
You may have taken some extra rooms for your business use. Is that okay?
Section 280A(c) states that you may claim a home office based on the portion of the dwelling that you use exclusively and regularly for business. Thus, the law dictates no...
Do you drive a vehicle titled in your personal name for corporate business?
Ernie Neve, CPA
October 6, 2020
Do you operate your business as an S or a C corporation?
Do you drive a vehicle titled in your personal name for corporate business?
Beware. The Tax Cuts and Jobs Act (TCJA) changed the rules for tax years 2018-2025.
Before the TCJA, you had to pay attention to the use of your personal vehicle for corporate business in order...
Last December, the imaginatively named Setting Every Community Up for Retirement Enhancement (SECURE) Act became law.
Ernie Neve, CPA
October 1, 2020
The SECURE Act was intended mainly to expand opportunities for individuals to increase their retirement savings and to simplify the administration of retirement plans. Fine. Good.
But the act also included a big unfavorable change that kneecapped the so-called stretch IRA estate planning strategy that was employed by well-off IRA owners.
The...
Small Business Administration (SBA) Economic Injury Disaster Loans (EIDLs) can be a great source of low-interest funding for businesses struggling with the economic impact of the COVID-19 pandemic.
Ernie Neve, CPA
September 29, 2020
Unlike Payroll Protection Program (PPP) loans, EIDLs are not forgivable—borrowers have to pay them back. But they have a low 3.75 percent interest rate and a long 30-year repayment period. Borrowers can repay them at any time without penalty.
To obtain an EIDL, borrowers must sign a loan authorization and agreement, a note, and a security agreement filled with...
Okay, so you took the big Section 179 expensing deduction on your vehicle.
Ernie Neve, CPA
September 24, 2020
How do you keep it?
You might wonder: What do we mean by “keep it”?
In tax law, there’s no free lunch. The Section 179 deduction comes with “recapture strings” attached.
When you claim your Section 179 deduction, you make a deal with the government to keep your business use above 50 percent...
What is the unpardonable sin in an IRS audit?
Ernie Neve, CPA
September 22, 2020
Suppose you just received that lovely letter from the IRS telling you that you are the subject of an IRS audit.
What one record receives special attention? What one record can create a nightmare for you? What one record makes the IRS suspect that you are the keeper of lousy records?
Think of the record people most hate keeping. That’s the...
Best Choice: De Minimis or 179 Expensing---or Bonus Depreciation?
Ernie Neve, CPA
September 20, 2020
You may not have considered the choices you have for deducting the assets that you buy for your business.
To create some perspective, let’s say you have seven employees who now work at least two days a week from home because of COVID-19. To facilitate this working at both the office and the home, you purchased seven laptop computers at a cost of $2,179...
PPP Update: Two New Rules for Owners of S and C Corporations
Ernie Neve, CPA
September 19, 2020
The Payroll Protection Program (PPP) rules—they keep a-changin’.
During the past month, the Small Business Administration (SBA) issued a new set of frequently asked questions (FAQs) and a new interim final rule, which in combination create the following good news for the Payroll Protection Program (PPP):
More forgiveness. The $20,833 cap on...
Surviving 2020
Ernie Neve, CPA
September 17, 2020
2020 has been a very stressful year, and even if we “forgot” the COVID pandemic, the sheer volume and scale of the disasters we’re seeing are daunting.
Fires in California, hurricanes in the Deep South, and civil and social unrest in middle America are all causing stress and worry. Now, even as an accountant and tax specialist, we are truly...
Keeping Your Retirement On Track
Ernie Neve, CPA
September 15, 2020
Let’s face it, one of the single biggest stressors we face is watching the balances on our retirement accounts. A few dollars up, a few dollars down each week (or each day), and each of these collectively tiny swings feels like it’s taking years off our lives.
So what can you do if your retirement has taken a hit this year? First of all, take a deep...
Thinking of Moving to a Lower-Tax State? Tax Angles to Consider
Ernie Neve, CPA
September 13, 2020
If you’re considering moving to a different state, taxes in the new state may be the deciding factor—especially if you expect them to be lower.
Consider All Applicable State and Local Taxes
If your objective is to move to a lower-tax state, it may seem like a no-brainer to move to one that has no personal income tax. But...
What Is the Unpardonable Sin in an IRS Audit?
Ernie Neve, CPA
September 12, 2020
What is the unpardonable sin in an IRS audit?
Suppose you just received that lovely letter from the IRS telling you that you are the subject of an IRS audit.
What one record receives special attention? What one record can create a nightmare for you? What one record makes the IRS suspect that you are the keeper of lousy records?
Think of...
Reinventing Your Resume
Ernie Neve, CPA
September 10, 2020
Let’s be honest – most of us change jobs at a far greater pace than our parents. As our global economy centers more and more on “gigs” and contractors, and companies like Uber and Upwork focus on outsourced labor (even CFOs are now becoming part-time jobs, so don’t think the “corner office” is exempt from this), older employees often find they...
Things To Consider With Financial Advisors
Ernie Neve, CPA
September 8, 2020
Just about every day, the phone rings with a client or a friend of one asking about financial advisors. “Do I know this firm?” “Are they any good?” Can I trust them?”
All great questions, and all revolve around one root concern: What should we look for when we try to begin a relationship with an individual or company designed to...
Seven Things to Know Before You Take Out an EIDL
Ernie Neve, CPA
September 6, 2020
Small Business Administration (SBA) Economic Injury Disaster Loans (EIDLs) can be a great source of low-interest funding for businesses struggling with the economic impact of the COVID-19 pandemic.
Unlike Payroll Protection Program (PPP) loans, EIDLs are not forgivable—borrowers have to pay them back. But they have a low 3.75 percent interest rate and a long 30-year...
Don’t Let Section 179 Recapture Hurt You
Ernie Neve, CPA
September 5, 2020
Okay, so you took the big Section 179 expensing deduction on your vehicle.
How do you keep it?
You might wonder: What do we mean by “keep it”?
In tax law, there’s no free lunch. The Section 179 deduction comes with “recapture strings” attached.
When you claim your Section 179 deduction, you make a deal...
IRS launches BBA centralized partnership audit website
Ernie Neve, CPA
September 3, 2020
WASHINGTON- The IRS announces the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime website.
The Centralized Partnership Audit Regime replaces the Tax Equity and Fiscal Responsibility Act (TEFRA) and the electing large partnership rules. The centralized partnership audit regime, or BBA, is generally effective for tax years beginning January 2018....
Can You Really Retire Early?
Ernie Neve, CPA
September 1, 2020
Of all the questions I get from business owners, the one that always seems to creep up – eventually – is about retirement.
Entrepreneurs today all seem to realize that small businesses are the ones driving innovation, and those with truly world-changing systems and processes are going to be purchased by larger companies.
At the same time, long-time employees are...
Four Insights into the PPP Loan and Its Forgiveness
Ernie Neve, CPA
August 30, 2020
We receive many questions about the Payroll Protection Program (PPP). Here are two of them with our answers.
1. Good Faith at the Time
Question. What are your thoughts on the repercussions for business owners who acted in good faith based on the information available at the time and are now left to do things that may be more questionable to earn PPP loan...
Does Renting My Home for Two Months Kill the $500,000 Exclusion?
Ernie Neve, CPA
August 29, 2020
Here’s how renting out your home while you take a two-month vacation interacts with your ability to use the $500,000 home-sale exclusion ($250,000 if single).
Remember, you have to use the home as a home for two of the five years before the sale to qualify for the home-sale exclusion.
Exclusion Rule
The tax code allows you to exclude...
A Different Campus Than We Had
Ernie Neve, CPA
August 27, 2020
As school-age children return to one of several new ways to learn, college students are in uncharted territory, too. While many schools and universities have been using distance learning for years, this year marks the first time many can offer few other alternatives.
One of the most interesting things about this challenge is how it might impact the long-debated...
Surviving “Homework”…
Ernie Neve, CPA
August 25, 2020
Well, like it or not, “back to school” has a whole new meaning this year. While a lot of us still go to the office, a whole host of traditional office jobs are now being done remotely.
And so is school, with many systems around the world running virtual classrooms for kids or radically reduced classrooms making the most of social distancing...
Five Answers to Spending the PPP Money on You and Your Employees
Ernie Neve, CPA
August 23, 2020
If you report your business income and expenses on Schedule C of your Form 1040, your PPP loan forgiveness is straightforward, as you see in the four answers below.
1. Paying Myself
Question. I know that I can achieve full forgiveness based solely on my 2019 Schedule C income in 10.8 weeks under the 24-week program. Do I have to pay myself every week for 10.8...
All About Limited Liability Companies (LLCs)
Ernie Neve, CPA
August 22, 2020
Limited liability companies (LLCs) are a popular choice of entity for small businesses and investment activities.
LLC owners are called members.
Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single member LLC for federal income tax purposes.
We will call LLCs with...
How Long Do You Need to Keep Those Records?
Ernie Neve, CPA
August 20, 2020
Now that most everyone has filed their tax returns, one of the biggest questions we get in the office is “How long do I need to keep these?”
The reality is that since more and more records are stored “in the cloud” our reliance on paper is not as extreme as it once was. The IRS, though, changes slowly, and so does our banking system, so while you might be...
Is Brick and Mortar Dying?
Ernie Neve, CPA
August 18, 2020
One thing is for sure about 2020 – it’s going to change a lot of things permanently. For many years, society has set strange precedents based on inclusion and exception, and now, those chickens are coming home to roost. You’ve seen these sort of posts on Social Media, perhaps even commented on them before…
The Colorado bakery owners who refused to...
Four PPP Forgiveness Answers for S Corporation Owner-Employees
Ernie Neve, CPA
August 16, 2020
Tax law definitions do not apply to much of the Payroll Protection Program (PPP), making it new ground for owners of S corporations. Here are answers to four questions of concern to many S corporation owners.
1. Spouse Owns S Corporation
Question. My wife owns 100 percent of the S corporation. She has a full-time job and does no work for the S corporation. I am the...
Two Correct Ways to Deduct Your Home Office With a Partnership
Ernie Neve, CPA
August 15, 2020
With the COVID-19 experience, you and your partners may be doing a lot of work from home or even working from home primarily. Is the home-office deduction in the mix?
If you operate your business as a partnership, you have two ways to correctly deduct your home-office expenses.
If you have a tax-deductible home office and operate as a partner in a partnership, you...
The Questions We Keep Hearing…
Ernie Neve, CPA
August 13, 2020
’ll admit, this one caught me off-guard the first time I heard it – and the second, third, and fourth! This seems strange, but, admittedly, there has been so much poor or questionable information shared by respectable sources, some employers might not require masks. It’s unlikely, given the environment today, any employer would require an employee to NOT wear a...
Social Media Marketing?
Ernie Neve, CPA
August 11, 2020
It’s been a very interesting year for so many reasons besides the pandemic and the ensuing civil unrest. From the point of view of a business owner, though, this might be some of the best times we’ll ever see.
Why would I say that? Simple: Old systems aren’t working, and even those of us who are set in our ways (And almost EVERY CPA I know is like...
Raise Hell: Help Lawmakers Make PPP Expenses Tax-Deductible
Ernie Neve, CPA
August 9, 2020
As you read this, it’s likely that your lawmakers are working on the next Payroll Protection Program (PPP) package.
And hopefully, in this next package, they will include a provision that allows you to deduct business expenses that you pay with your PPP money.
Let’s explain. In the CARES Act, Congress said:
For purposes of the...
PPP Cash Infusion: Haven't Applied? Apply Today---Don't Wait
Ernie Neve, CPA
August 8, 2020
As we write this, current law says the Payroll Protection Program (PPP) cash infusion is going to expire on August 8, 2020.
If you have not yet applied for your PPP cash infusion, you likely need to get your completed application to an approved SBA lender on or before August 6, 2020. Why? Because the SBA needs to approve your loan on or before August 8, 2020.
A Little Extra Cash?
Ernie Neve, CPA
August 6, 2020
No matter how you’re weathering the pandemic, the truth is, most of us are still looking to keep our cash reserves as high as possible. Whether it’s a rainy day fund we’ve let get low or we’re just needing to pay off some debt that has crept up, the team and I have some ideas to generate a little “extra” for you…
Sell some old...
What taxpayers should do if they get a letter or notice from the IRS
Ernie Neve, CPA
August 4, 2020
Every year the IRS mails letters or notices to taxpayers for many different reasons.
Here are some do’s and don’ts for taxpayers who receive one:
Don’t ignore it. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do.
Don’t...
Working at Home? Don’t Overlook These Deductions
Ernie Neve, CPA
August 2, 2020
Whether you claim a business office in the home or are simply working at home, say because of COVID-19, you likely have some former personal assets that you now use for business.
Ah, new tax deductions!
Yep. Say you don’t claim a home-office deduction but now you are working at home and sitting in the fancy chair you inherited from your...
IRS issues proposed regulations for TCJA’s simplified tax accounting rules for small businesses
Ernie Neve, CPA
August 1, 2020
WASHINGTON — The Internal Revenue Service today issued proposed regulations updating various tax accounting regulations to adopt the simplified tax accounting rules for small businesses under the Tax Cuts and Jobs Act (TCJA).
For tax years beginning in 2019 and 2020, these simplified tax accounting rules apply for taxpayers having inflation-adjusted average annual gross...
Do I Have to Defer My Self-Employment Tax Payment?
Ernie Neve, CPA
July 30, 2020
Question
I’m a majority owner in a partnership. I know the CARES Act allows me to defer part of my tax year 2020 self-employment tax.
Do I have to do this? I’d rather pay the tax now.
Answer
We believe this provision is completely optional, as we explain below.
Deferral...
Which One Are You?
Ernie Neve, CPA
July 28, 2020
This month, as you might have noticed, we’ve taken a break from the way we traditionally send out our emails. Instead of compiling lists and notes and trying to share news, I’ve decided to share some of the key frustrations I see across the desk in my office.
Many of the things I’ve shared this month – actually, ALL of them – come from my...
Potential Estate and Gift Tax Threat: Should You Worry?
Ernie Neve, CPA
July 26, 2020
Over the past few decades, federal taxes have generally trended lower.
That era may be coming to an end, especially for well-off individuals.
The major factor to consider is that our country might finally be forced to confront the issue of ongoing huge federal budget deficits—which have been made that much bigger by costly federal COVID-19 relief...
PPP Loan Forgiveness for Partnerships and S and C Corporations
Ernie Neve, CPA
July 25, 2020
If you operate your business as a partnership or an S or C corporation, you face entity-specific Payroll Protection Program (PPP) loan forgiveness rules that apply to you as an owner-worker in the business.
The rules that apply to you do not apply to the rank-and-file employee group. The government puts you, the owner-worker, in a separate “owner-employee” category...
Keeping It Close
Ernie Neve, CPA
July 23, 2020
This year HAS to be the strangest one on record for us.
Yes, it’s been the punch line in memes, multiple monologues from a late night, and more than a few conversations nearly every day, but one trend we’re seeing that very few people are talking about is this:
Americans have – broadly speaking – more cash on hand than they have had in a...
Leadership, Not Ownership
Ernie Neve, CPA
July 21, 2020
It’s time to keep working on this month’s theme, that is, reopening in the post-pandemic economy. But more importantly, reopening the business you truly enjoy rather than a business that is simply a job you happen to own.
No one can simply grow a company willy-nilly and expect to enjoy the trip. Even when Hewlett and Packard opened the doors nearly...
Three Ways to Maximize Your Investment Interest Deductions
Ernie Neve, CPA
July 19, 2020
Here’s bad news—tax law allows you to deduct only some of the interest you pay on your debts.
For example, you do not deduct interest paid on your personal credit cards. Similarly, you may not deduct interest paid on the loan used to buy your personal vehicle.
But here’s good news—you likely aren’t deducting all the interest you can...
Government Clarifies PPP Loan Forgiveness for the Self-Employed
Ernie Neve, CPA
July 18, 2020
How much is clarity worth?
A lot, a whole lot.
And how much is making things easier worth? Of course, it’s a lot, a whole lot, too.
We now have both the new (a) clarity and (b) easy road to Paycheck Protection Program (PPP) loan forgiveness for the self-employed with no employees. Get ready to smile.
New Easy Road to 100 Percent...
In Case of Emergency: Buy?
Ernie Neve, CPA
July 16, 2020
One of the things I’ve learned to do as an accounting professional is to look for and identify trends. My clients count on me to be “in the know” on far more than tax law, so I feel comfortable discussing a wide variety of things with them.
Retirement savings
Car leasing versus purchasing
Property investment
Corporate entity structures
The...
Build It Or Rebuild It?
Ernie Neve, CPA
July 14, 2020
I know, some of you might be thinking “how is an accountant giving me advice on entrepreneurship?”
But I’m really not.
I’m asking you to think about what you’d do differently in your business if you could completely reimagine it.
Not a better website, not a different social media strategy, but what would you really...
IRS Enables Millions to Qualify for the $100,000 IRA Grab and Repay
Ernie Neve, CPA
July 12, 2020
New IRS guidance expands the possibilities for what is an adverse COVID-19 impact on you for purposes of taking up to $100,000 out of your retirement accounts and repaying it without penalties.
First, let’s look at the rules as they existed before this new IRS guidance. The CARES Act created the first set of favorable rules, and those rules are still in play.
Act Now: IRS Creates New Path For Undoing RMDs
Ernie Neve, CPA
July 11, 2020
With the CARES Act, Congress decided to waive all 2020 required minimum distributions (RMDs).
What if you already took out your annual RMD before Congress changed the law?
The IRS just granted you brand-new mercy to fix the issue, but you need to take action before August 31, 2020.
2020 RMD Waiver
The CARES Act waived all...
Making Amends
Ernie Neve, CPA
July 9, 2020
Let me tell you, as a tax professional, one of the biggest pains is amending tax returns.
Even years after most “normal” returns went electronic, any changes to a previously filed return needed to be done on paper, snail mail it in, and wait patiently for processing.
Not anymore!
As of this summer, taxpayers...
Rethinking, Reorganizing, and Reopening
Ernie Neve, CPA
July 7, 2020
There’s a lot going on in the world today, no matter where your news comes from. Across the country, as more businesses reopen and try to return to some semblance of normal the fact is:
Coronavirus is still a threat.
And while the odds of another shutdown like we experienced in the Spring are (hopefully) slim, your customers have been...
COVID-19 Strategy: Hire Family Members To Create Tax Benefits
Ernie Neve, CPA
July 5, 2020
The COVID-19 pandemic may create tax benefit opportunities for you and your family members.
For example, you could hire your under-age-18 children, pay them, say, $10,000 each, and they could pay zero federal income taxes. And you or your corporation, the employer, would deduct the $10,000 you paid to each of the children.
The child wins. You win....
July 15: Are You Ready To Make Your Tax Payments?
Ernie Neve, CPA
July 4, 2020
Due to COVID-19, the IRS postponed almost all tax payments due in the past few months until July 15, 2020.
Now—it’s time to pay Uncle Sam.
If you have the cash, you may be wondering what’s the best way to make your payments.
If you don’t have the cash, you may not know what to do.
What’s Due on July...
Getting It Back On Track
Ernie Neve, CPA
July 2, 2020
One of the biggest worries we’ve fielded from clients in the last three or four months has been the impact COVID has had on retirement savings.
A lot of people have lost money due to the volatility in the markets, but even more have been faced with dipping into retirement accounts to stay afloat as the pandemic has impacted their earning power.
We’ve...
Q&A: Are Classes in How to Fix and Flip Houses Deductible?
Ernie Neve, CPA
June 30, 2020
Question
I have a client who works in corporate America. He is also in the business of real estate and plans to use this platform to support his transition out of corporate life.
In 2019, he created a single-member LLC (business license, tax ID number, articles of organization, etc.). He took some expensive real estate courses in 2019 and...
Create Deductions: Use Your Vacation Home For Business Lodging
Ernie Neve, CPA
June 28, 2020
Here’s good news: the properly used business vacation home or condo does not suffer from
the vacation-home rules,
the passive-loss rules, or
the entertainment-facility rules.
In these days of COVID-19, you may have solid reasons to use your vacation home or condo for two purposes only:
personal pleasure, and
business...
Taking Advantage of Partnership Special Allocations
Ernie Neve, CPA
June 27, 2020
One of the advantages of operating a business as a partnership is the right to make special allocations of tax items among the partners. You have the same opportunity if you run your business as an LLC that’s treated as a partnership for federal tax purposes.
What Is a Special Tax Allocation?
A special tax allocation is an allocation of an item of...
Q&A: Is the EIDL Advance Taxable?
Ernie Neve, CPA
June 25, 2020
Question
I have an S corporation with eight employees. I applied for and got an Economic Injury Disaster Loan (EIDL) advance of $8,000 from the Small Business Administration (SBA). I didn’t get a Paycheck Protection Program (PPP) loan.
Is this taxable? Does this impact my tax deductions?
Answer
We...
So How Long Is This Going to Last?
Ernie Neve, CPA
June 23, 2020
Every day, clients are calling the office and asking many of the same basic questions.
Some are about taxes, of course, especially with so much SBA money being thrown around and radical changes affecting how companies use those funds in the face of future taxes. A lot more, though, are about what we think is going to happen.
Well, if we’ve...
COVID-19 Relief If You Work Abroad or Travel to the U.S. to Work
Ernie Neve, CPA
June 21, 2020
If the federal tax you pay is dependent on where you are physically located, then COVID-19 likely has thrown a wrench in your physical tax location (and tax situation).
If you were living abroad and had to return to the U.S. because of COVID-19, you may wonder if you’ll have a big tax bill for failing to meet the foreign earned income exclusion requirements.
Nine Insights into PPP loan forgiveness for the self-employed
Ernie Neve, CPA
June 20, 2020
When you are self-employed with no employees, the payroll protection program (PPP) program is a COVID-19 gift designed to help you get through this pandemic.
If you now have your PPP funds, we identified nine insights for you.
1. Do I Have to Spend the Paycheck Protection Program (PPP) Loan Proceeds?
Yes, it appears so. The instructions...
Is It Time for a Side Gig? (hint: YES!)
Ernie Neve, CPA
June 18, 2020
One thing that stands out to me in all the news of the pandemic is how “regular” folks identified challenges or needs and then, creatively turned their solutions into profits.
Stories like this are everywhere if you look for them – the little girl who learned to sew to make masks, the furloughed teacher who monetized a YouTube channel, and literally...
Some Potential Problems With The PPP Loans
Ernie Neve, CPA
June 16, 2020
For the last two months, I’ve been watching and studying the CARES Act and the Payroll Protection Program loan systems very carefully. Overall?
I think the federal government did a really good job.
They moved quickly, they acted far more decisively than most of us could believe possible, and the overall effect was to get money into the hands of small...
COVID-19: Two New Retirement Account Strategies You Need To Know
Ernie Neve, CPA
June 14, 2020
Due to the COVID-19 pandemic, Congress made changes to the tax law related to retirement account distributions. The changes open up new, time-limited ways for you to save tax dollars.
Congress waived all 2020 RMDs. But if you took your RMD before Congress made this change, you have two ways you can undo it:
Use the expanded 60-day indirect rollover, if you...
Six Insights into the PPP for Partnerships
Ernie Neve, CPA
June 13, 2020
The PPP free-cash program to assist businesses during the COVID-19 pandemic is gaining traction and clarity. If you operate your business as a partnership, you have several recent developments that make the free-cash program more to your benefit.
1. Partner’s Self-Employment Income Creates Cash and Forgiveness
Just as sole proprietors failed originally to ask...
Rethinking Goals
Ernie Neve, CPA
June 11, 2020
Throughout the pandemic, we’ve seen a lot of things that have proven to be overrated or at least overused. One word I’m personally sick of is “pivot.”
Yes, it’s accurate, but so many people, especially business owners and managers, are using it these days…
“Pivot” is tired.
But the ideas behind it...
CARES Act Tax breaks?
Ernie Neve, CPA
June 9, 2020
There’s no denying how much the landscape has changed in the last three months. With the passing of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, though, some really nice tax breaks have been created and very few of them have gotten much press.
I wanted to share some of those with you to make sure you and your business are able to make the most of them in this...
Getting the most from your stimulus check
Ernie Neve, CPA
June 4, 2020
As we kick off the summer of 2020, many of us are dealing with the fact that life as we know it has changed dramatically.
Jobs lost or furloughed, schools and businesses closed indefinitely, and worry and questions continuing to arise about what the rest of the year holds for us all.
By now, many workers in America affected by COVID-19 have received their stimulus...
Who can you believe?
Ernie Neve, CPA
June 2, 2020
I get it – a LOT of people continue to be nervous about the economy, investments, real estate – you name it.
…And we won’t even go into how they feel about how various governmental agencies around the world are re-opening the economy. The House says this, the Senate says that. The WHO says this, the CDC says that. Georgia is wide open...
How To Keep Afloat
Ernie Neve, CPA
May 29, 2020
Look, let’s just be honest right now – people are struggling financially. Yes, stimulus checks are continuing to go out and they are having an impact for millions of Americans.
Despite that, times are still hard for a lot of folks, so today, I wanted to share some critical ways you can keep more money in your pocket and not negatively impact your overall financial...
Side Hustles in a Strange Economy
Ernie Neve, CPA
April 30, 2020
I hate to say it, but the downturn we’re in, coupled with the massive wave of lay offs and furloughs in the wake of COVID-19, means a lot of people are struggling. Stimulus checks are on their way, but many people are finding creative ways to uphold social distancing regulations and curfews or stay at home orders and still make money.
Here’s some really clever...
Sorting Out Self Employment
Ernie Neve, CPA
April 28, 2020
You know, as the COVID 19 crisis was really beginning to hit us in March, corporate taxes were due. Immediately after that, of course, the IRS pushed Tax Day back to July 15th.
Now, plenty of business owners filed for an extension, but I wanted to take a few minutes today to go over some of the self employment deductions we’re always getting questions about, to help...
What’s All This Talk About a Recession?
Ernie Neve, CPA
April 23, 2020
There’s a lot of talk these days about the economy slipping into a recession and while we are undoubtedly in a downturn, the simple fact is, the pandemic that we are battling has no precedent in modern times.
Business is often slow to react, while investors are often extremely reactionary. The results, in this case, are a lot of worry, a lot of “paper”...
An Ounce of Planning
Ernie Neve, CPA
April 21, 2020
Last week, I was sharing some insights about estate planning and some key takeaways anyone can use to ensure that their estate in not caught shorthanded or overtaxed when the time comes to settle it.
I’ve continued to follow that thread this week, because for many families, there is not only the so-called “interfamily loan” possibilities, but also, some really...
Looking (A LOT Further) Forward
Ernie Neve, CPA
April 16, 2020
No matter what the media says, no matter what the pundits on social media share, the simple fact is this: There is good news available to everyone when they choose to look for it.
Don’t believe me?
How many of you wished for more time with your family? How many grandparents and parents are finally getting the attention they deserved from their...
Getting It Right
Ernie Neve, CPA
April 14, 2020
There’s no doubt we’re living in historic times, but the men and women I speak with on a daily basis are truly optimistic.
Why? For them, this has been a windfall in one of two ways – they were positioned in such a way to make the most of their portfolios OR they are using the “extra” time they currently have to make changes they might have...
In case you missed it…
Ernie Neve, CPA
April 9, 2020
Let me be blunt – there’s TOO much “bad” news I the world and I flatly refuse to feed into it. Yes, COVID-19 is unprecedented in any modern economy. Yes, lives are being lost or changed forever. Yes, millions of employees are being laid off or furloughed.
But in the end, this will pass. The Federal government has moved far faster...
A LOT of Changes
Ernie Neve, CPA
April 7, 2020
No matter where you are or what industry you’re involved in, we are going through an incredible time. In the last two months, things have changed, plain and simple.
Here’s the thing, though – with all the seemingly insanity and what I truly believe to be a false sense of scarcity, there has never been a more opportune time for entrepreneurs and business...
IRS mission-critical operations continue; no face-to-face assistance
Ernie Neve, CPA
April 1, 2020
To protect employees and taxpayers, the IRS has scaled back our operations to focus on mission-critical activities for the nation. We continue to follow guidance from the U.S. Centers for Disease Control and Prevention (CDC) and the Office of Personnel Management (OPM) as well as state and local officials to ensure the safety of IRS employees and the public we serve.
Many IRS offices...
Economic Impact Payments: What you need to know
Ernie Neve, CPA
April 1, 2020
The distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. Social Security beneficiaries who are not typically required to file tax returns will not need to file to receive a payment. Instead, payments will be automatically deposited into their bank accounts. However, some taxpayers who...
Families First Coronavirus Response Act and other COVID-19 legislation
Ernie Neve, CPA
April 1, 2020
The IRS is taking immediate steps to implement COVID-19 legislation during this period. We will also be working closely with our partners in the tax community on this to assist with implementation. Additional information will be posted on the special coronavirus page.
Small and midsize businesses. Small and midsize employers can begin taking advantage of two new refundable...
Don't forget state tax returns; different deadlines may apply
Ernie Neve, CPA
April 1, 2020
The July 15, 2020 extension only applies to federal income tax returns and tax payments otherwise due April 15, 2020, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia. State filing and payment deadlines vary and are not always the same as the federal filing deadline....
Refund filers: File as soon you can
Ernie Neve, CPA
April 1, 2020
Refunds continue: If possible, don't wait until July 15 to file if you're owed a refund; file as soon as possible. Refunds will continue to be paid. For the quickest results, taxpayers should use e-file or Free File with direct deposit to help speed up refunds.
E-file recommended: To avoid delays, the IRS urges taxpayers to file electronically rather than on paper; using...
Tax Day is now July 15: Key Information for Taxpayers
Ernie Neve, CPA
April 1, 2020
The federal income tax filing due date has been automatically extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, corporations and other non-corporate tax filers as well...
Haven’t We Already Said This?
Ernie Neve, CPA
March 26, 2020
Every year I mention this and every year, it’s worth sharing again.
Taxes don’t have to be painful, but the longer you wait or the less organized you are, the less enjoyable (and more expensive) they can be.
Many times, over the years, we’ve joked about the “shoebox filled with receipts” and, as hard as it is to believe, we still see...
Are You Staying Up?
Ernie Neve, CPA
March 24, 2020
Time is really getting tight with Tax Day only a few weeks away, but I wanted to reach out this morning to ask you (what I think is) an important question.
How do you continue to learn?
After all, at this day in age, there are thousands of ways to not only get information but to process it and then use it in your business, so what are, for you, the most effective...
Beat The Unfair $10000 SALT Tax With a C Corporation
Ernie Neve, CPA
March 22, 2020
C corporations cause double taxation for business owners, so you probably think you want to avoid them at all costs.
And for many of you, this is true, as the S corporation often provides the lower overall tax outcome.
But for some of you, the C corporation could provide the best tax outcome, especially since you can bypass the...
Section 83(b): Restricted Stock Awards And Your Taxes
Ernie Neve, CPA
March 21, 2020
When you receive restricted stock awards, you need to decide whether you want to make a Section 83(b) tax election.
Without the Section 83(b) Election
With no Section 83(b) election, you must recognize taxable compensation income from your restricted stock award in the year the restriction causing the substantial risk of forfeiture lapses. For example, you would recognize...
Do You Need A Financial Advisor?
Ernie Neve, CPA
March 19, 2020
Nearly every day, a client asks me for financial advice and, inevitably, one of the next questions is if I believe they need to retain a financial advisor.
I know it’s a loaded question, but the truth is, the right financial advisor can be worth their weight in gold and the wrong one can ruin your retirement faster than you ever thought possible.
Let’s...
Is It Time To Worry?
Ernie Neve, CPA
March 17, 2020
Over the last month, the world has had all sorts of conspiracy theories about the possibility of a pandemic based on the coronavirus and the threat it poses to worldwide markets.
The truth is, it caused a major sell-off in late February and it continues to baffle researchers around the world. Politicians are pointing fingers and some of us are watching our investment...
Beware of The Dark Side When Considering The C Corporation
Ernie Neve, CPA
March 15, 2020
As you likely know, the Tax Cuts and Jobs Act made a big change in how C corporations are taxed—one flat, 21 percent rate.
The new, lower rate makes the C corporation far more appealing than in prior years. But you also need to look at the dark side of this possible opportunity.
Double Taxation of Corporate...
Husband-Wife Partnerships: The Tax Angles
Ernie Neve, CPA
March 14, 2020
When both members of a married couple participate in an unincorporated business venture, must it be treated as a husband-wife partnership for federal tax purposes? Answer: maybe, or maybe not.
Figuring out the answer is important because it can have a huge impact on the couple’s self-employment tax situation.
Husband-wife partnerships must...
Why Not DIY?
Ernie Neve, CPA
March 12, 2020
Every year, we get a lot of the same questions. It could be “how do I get another copy of my W2?” or “Do I need to keep this 1095?”
…But we get them.
In the last few years, though, we’ve started getting more questions based on the tax preparation software on the market and the safety of it – both from the identity theft...
Audit! Uh-Oh!
Ernie Neve, CPA
March 10, 2020
Like the title says, there might not be anything worse than hearing or reading those words from the IRS – the ones telling you to prepare for an audit.
Even after all of these years, I still get nervous hearing them, but, having “been to the movie” a few times, I’ve learned that most audits are prompted by a few specific actions on the part of the taxpayer and...
Auditor Claims It's Illegal For Parent to Employ His 11 Year-Old
Ernie Neve, CPA
March 8, 2020
When you employ your children to work in your business, make sure that you comply with both the IRS and the Department of Labor.
Labor Law
Here’s what the Department of Labor has to say in its plain English explanation about a parent hiring his or her child:
The Fair Labor Standards Act provides for certain exemptions. Youth younger than 16 years of...
If You Don't Want 100 Percent Depreciation, Elect Out Or Else
Ernie Neve, CPA
March 7, 2020
As you likely know, the Tax Cuts and Jobs Act increased bonus depreciation to 100 percent.
Unlike most tax provisions that involve a tax election, this one requires you to elect out if you don’t want it.
For example, you (or your corporation) buy two $50,000 trucks, each with a gross vehicle weight rating of 6,500 pounds and a bed length of 6.5 feet. You use...
Is Your Expertise Worth Selling?
Ernie Neve, CPA
March 5, 2020
As we get closer and closer to Tax Day next month, the team and I have heard some version of the same thing more than a few times: “I just don’t get paid what I’m worth.”
Now, I’m not going to touch that one, because there are WAY too many variables in it. But even if you work for someone else and have no desire to open your own business, are...
Here Some Tax Breaks I Can’t Even Believe!
Ernie Neve, CPA
March 3, 2020
Tax season is in full swing here and, just like we do every year, the team and I have been explaining why a lot of “tax breaks” simply aren’t legal.
No matter what, you cannot claim your cat as a dependent – but keep reading, because, under the right circumstances, you can write off the cat food…
On the other hand, we HAVE found some...
Does The Per Diem Expense Option Stick It To Business Owners
Ernie Neve, CPA
February 29, 2020
Because you run your own business, it’s pretty safe to say that record keeping is one of the many administrative monkeys on your back.
Which is why the idea of a set-dollar travel per diem may seem mighty appealing. Think of it—instead of tracking every dollar you spend on travel meals and lodging, you just deduct a fixed amount and call it a day. Easy...
…And the Tax Scams are in FULL Swing…
Ernie Neve, CPA
February 27, 2020
For the last few weeks, I’ve been sharing a lot of financial “stuff” based on how so many people find themselves in hot water when it comes to money and spending. This week, though, as tax season is definitely heating up, I wanted to get back to some basics when it comes to everybody’s favorite problem – tax fraud.
Just like clockwork, my team and I...
Prospect Nurturing Isn’t As Simple As It Was…
Ernie Neve, CPA
February 25, 2020
This late in the month, you’ve probably become firmly convinced that I’ve gone crazy.
Why is a CPA giving business lessons?
Where’d they get all these ideas, anyway?
Well, a lot of it is simply experience. I work with all types and sizes of companies and entrepreneurs, so I’ve seen a lot of neat ideas that have paid off...
Know This About Employer Issued Incentive Stock Options
Ernie Neve, CPA
February 23, 2020
With incentive stock options (ISOs), you could be on your way to a very nice payout.
But you must consider both the regular federal income tax results and the alternative minimum tax (AMT) results.
In addition, you must pay attention to special rules that apply to so-called disqualifying dispositions of shares acquired by exercising ISOs. This...
Answers To Questions About the Secure Act
Ernie Neve, CPA
February 22, 2020
The Setting Every Community Up for Retirement Enhancement (SECURE) Act changed the landscape for retirement and savings planning.
Here are eight important reminders about this new law:
- You can’t use contributions made in 2020 but applied to 2019 for any SECURE Act provisions that apply to contributions made after December 31,...
Just How Good do The Jones’ Have It?
Ernie Neve, CPA
February 20, 2020
Everybody jokes about “keeping up with the Jones’” when it comes to the call of buying things for the sake of buying them – and going into deep debt for the sake of appearance – but why?
We’ve all got somebody we look up to and try to emulate, but does it really pay off?
No. Not ever.
What it does do is to create a...
Rethinking the Lead Acquisition Process
Ernie Neve, CPA
February 18, 2020
And the adventure continues! I’ve been sharing some ideas about how entrepreneurs can streamline their businesses and I hope you’ve gotten a lot of insight so far.
Let’s talk about lead acquisition a little bit.
Most entrepreneurs and business owners look at lead acquisition only in terms of marketing. The truth is, it’s a lot of...
Avoid the Gift Tax -- Use the Tuition and Medical Strategy
Ernie Neve, CPA
February 16, 2020
If you or a well-off relative are facing the gift and estate tax, here’s a planning opportunity often overlooked: pay tuition and medical expenses for loved ones.
Such payments, structured correctly, do not represent gifts.
The monies spent by you on the qualified medical and tuition payments reduce your net worth and taxable estate, but...
Know This About Employer Issued Non-Qualified Stock Options
Ernie Neve, CPA
February 15, 2020
You or your spouse may have the opportunity to obtain non-qualified stock options.
Or you may have your corporation issue non-qualified stock options to its employees and independent contractors.
In both cases, you will want to know how these options work.
When you exercise a non-qualified stock option, the...
The Hidden Challenges of Using Your Home
Ernie Neve, CPA
February 13, 2020
A few weeks ago, I had a conversation with a client who was exploring the various options for using the equity in his home as a way to pay down some other debts.
He and his wife had done their research for sure, and they had settled on the Home Equity Line Of Credit (HELOC).
Now, personally, I’ve always been a fan of HELOCs instead of a second mortgage or a home...
Rethinking your Client Fulfillment process?
Ernie Neve, CPA
February 11, 2020
Since I sent out last Tuesday’s blog, I can’t tell you how many messages I’ve gotten from readers and clients about why a CPA would want to discuss seemingly “internal” systems related to my clients’ businesses.
Simple – we both want the same thing – your business to be more successful!
Now, last week, I asked you to track...
Don't Waste Donations on Your Church or Charity; Use Your Business
Ernie Neve, CPA
February 9, 2020
Giving to your church, school, or other 501(c)(3) charity is a noble act no matter how you choose to give.
But for the purposes of tax savings, some forms of giving are much more beneficial to you than others. As a business owner, you can use some business strategies to get the money to these institutions as business expenses.
While this does not...
Per Diems Post-Tax Reform: What the TCJA Has and Hasn't Changed
Ernie Neve, CPA
February 8, 2020
Because you run your own business, it’s pretty safe to say that recordkeeping is one of the many administrative monkeys on your back.
Which is why the idea of a set-dollar travel per diem may seem mighty appealing. Think of it—instead of tracking every dollar you spend on travel meals and lodging, you just deduct a fixed amount and call it a day. Easy...
Lost in Debt? Here’s one way to regain control…
Ernie Neve, CPA
February 6, 2020
Now that the tax season is nearly in full swing, especially for individuals who work for other companies and have relatively “simple” W-2 based returns, we’re hearing a lot of things from clients.
Things like how their tax refunds are going to be used to pay down credit card bills or other debts.
I’ve heard that for years and, honestly, I think...
All You’ve Really Got To Do…
Ernie Neve
February 4, 2020
I hope you’re having a fantastic first quarter so far (and have managed to keep your Resolutions this far into the New Year) but I have to ask you:
What are you doing to make your business easier for you?
Now, “easy” is a relative term for a lot of folks, but what I’m really talking about is your client fulfillment system, your lead acquisition...
Make 2020 the Year You Took Action!
Ernie Neve, CPA
January 30, 2020
I hope the New Year is treating you fantastically! Obviously, we’re getting close to Tax Season, W-2s will be sent out in the next week and the early filers are already ringing the phones.
Before the team and I get lost in preparation, though, I wanted to take a few minutes today to share some thoughts about retirement.
Now, I’ve discussed this...
Why We Need To Talk NOW
Ernie Neve, CPA
January 28, 2020
Unless you’ve recently immigrated, chances are, you know in the United States, taxes are due to be filed no later than April 15th. Now, of course, there’s a whole lot of places that excuses and extensions can be used and filed, but, for the vast majority of business owners, you’ll be filed by then.
So why, with more than 90 days to go before those taxes...
Solo 401(k) Could Be Your Best Retirement Plan
Ernie Neve, CPA
January 25, 2020
Have you procrastinated about setting up a tax-advantaged retirement plan for your small business? If the answer is yes, you are not alone.
Still, this is not a good situation. You are paying income taxes that could easily be avoided. So consider setting up a plan to position yourself for future tax savings.
For owners of profitable one-person business operations, a relatively...
Some Things to Pay Attention To…
Ernie Neve, CPA
January 23, 2020
Now that we’re really “into” 2020 and those of us who are digging into our New Year’s Resolutions are seeing progress while other folks may have … “misplaced” them, I wanted to pass along an interesting observation a new client made recently.
Just to set the record straight, this gentleman is not filthy rich, but as a new client, he and I had...
Have You Found More Time?
Ernie Neve, CPA
January 21, 2020
One of the biggest challenges tax professionals and accountants face is assisting our clients in gathering all the information and documents they’ll need to be able to calculate their tax bills.
This time of year, of course, is when 90% of those tax documents are sent out and EVERY year, the phone here in the office rings nearly off the hook with clients wondering who to...
Check Your 2020 Withholding!
Ernie Neve, CPA
January 20, 2020
The Treasury and the IRS redesigned the W-4 withholding form in the wake of the Tax Cuts and Jobs Act, which eliminated the traditional exemptions for dependents and the taxpayers themselves along with a host of deductions. Many taxpayers discovered this year as a result of the changes that they unexpectedly ended up owing taxes because they didn’t have enough money withheld from their...
Why A Simple-IRA Could Be Your Best Retirement Plan Alternative
Ernie Neve, CPA
January 19, 2020
Talk to a business owner who has been in business for a while and he or she will tell you to make sure that you put a retirement plan in place.
When you are starting out and have a modest income, the Savings Incentive Match Plan for Employees (SIMPLE) IRA can be the perfect plan.
You must have your SIMPLE IRA set up by October 1, 2020, to permit a...
Unlock Tax Deductions With A Rental Property Home Office
Ernie Neve, CPA
January 18, 2020
With the start of a new tax year, you’re probably looking for new tax savings opportunities.
As you probably know, establishing a home office for your Schedule C or corporate business creates valuable tax deductions.
But it’s not available only for your proprietorship, partnership, or corporate business. If you have rental properties,...
New Year, Old Problems?
Ernie Neve, CPA
January 16, 2020
Inevitably, one of the most common questions we get here when it comes to employee benefits for our clients is those pertaining to healthcare. It’s no secret that healthcare costs, no matter who is in office, continue to rise and in the last few years, we’ve seen several alternate methods devised to allow taxpayers to help pay for their healthcare.
In general,...
If Nobody Knows, Can You Even Do It?
Ernie Neve, CPA
January 14, 2020
Good Morning
Now that we’re in the second week of 2020, I really wanted to check in to discuss those resolutions you made.
We ALL know that most of us fall back on the old “New Year, New Me” stuff, but aside from losing weight, eating better, and making more money, what actionable resolutions did you make?
Did you use a specific dollar amount...
Should You Operate Your Business as a Partnership (or an LLC Taxed as a Partnership)?
Ernie Neve, CPA
January 12, 2020
Changes included in the Tax Cuts and Jobs Act (TCJA) force you and other small-business owners to reconsider whether a new venture should be conducted as a pass-through entity or as a C corporation.
Pass-through entities include partnerships and multi-member LLCs that are treated as partnerships for tax purposes.
So, what should you think about...
Top Eight Changes In The Secure Act You Need To Know
Ernie Neve, CPA
January 11, 2020
As has become usual practice, Congress passed some meaningful tax legislation as it recessed for the holidays.
In one of the new meaningful laws, enacted on December 20, you will find the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).
The SECURE Act made many changes to how you save money for your retirement, how...
Rethinking Your Taxes
Ernie Neve, CPA
January 9, 2020
Happy New Year,
Welcome to 2020! Like many of us, I’m sure you’ve made a whole host of resolutions for the New Year. I did, too.
Today, though, I wanted to reach out to ask you – were those resolutions specific enough?
Did you fall back on the old “lose weight, be a better friend/spouse/parent, make more...
Is Your Vision 2020?
Ernie Neve, CPA
January 7, 2020
Good Morning and Happy New Year!
Now that the collective holidays are past us and we’re plunging into 2020, I wanted to reach out to not only welcome you to the next decade, but I also wanted to try to get a sample of what entrepreneurs like you were thinking.
Are you optimistic about the coming year? Worried? What plans are you making so far as investment...
Congress Reinstates Expired Tax Provisions -- Some Back To 2018
Ernie Neve, CPA
January 5, 2020
Congress let many tax provisions expire on December 31, 2017, making them dead for your already- filed 2018 tax returns.
In what has become much too common practice, Congress resurrected the dead provisions retroactively to January 1, 2018. That’s good news. The bad news is that we have to amend your tax returns to make this work for...
Divorce: Beat Alimony, Redeem Spouse's Stock In Your Closely Held Corp.
Ernie Neve, CPA
January 4, 2020
Know this: the Tax Cuts and Jobs Act (TCJA) permanently eliminated federal income tax deductions for alimony payments required by divorce agreements executed after 2018.
On the other side of the coin, recipients of such non-deductible alimony payments do not have to include the alimony in gross income.
So, under current law, alimony payments are...
Never Quit Learning
Ernie Neve, CPA
December 26, 2019
Before you start getting bombarded by New Year’s Resolutions (that’ll be next week for
20/20 is here…
Ernie Neve, CPA
December 24, 2019
First things first, this isn’t one of those sappy “New Year’s Resolutions” emails. I’m saving THAT gold for new month.
What this is, though, is a quick email about your own goals. I’d like you to take some time this week to think about them:
· What went right in...
IRS Issues New Bitcoin Tax Guidance
Ernie Neve, CPA
December 21, 2019
The IRS recently issued new cryptocurrency guidance and is hot on your trail if you bought and sold cryptocurrency and didn’t report it on your tax return.
Here are the tax basics. You’ll treat cryptocurrency as property for tax purposes:
If you receive bitcoin in exchange for your services, then your income is the fair market value of...
Getting The Most From Your 401(K)
Ernie Neve, CPA
December 19, 2019
We’re getting dangerously close to the end of 2019, but there’s still time to add to your 401(k) if you haven’t maxed out your contributions this year.
Just to remind you, if you’re under 50, you can save up to $19,000 per year ($25,000 if you’re over 50). For a lot of the people I talk to, they aren’t anywhere close to that number...
Getting Clear on When (and How Much!) You Can Contribute
Ernie Neve, CPA
December 17, 2019
Good Morning,
We’re getting SUPER close to the end of the year and, just like every year, we’re getting tons of calls about what accounts can be contributed to after December 31st and which ones will remain open for contributions until April 15th.
Here’s the rule of thumb – If you have a 401(k), ALL contributions end at midnight, December...
Know These Divorce-Related Tax Issue for Small-Business Owners
Ernie Neve, CPA
December 15, 2019
As with all financial transactions, divorce comes with tax consequences. And those consequences have changed for tax years 2018 and later thanks to the Tax Cuts and Jobs Act (TCJA).
General Rule
The general tax rule in a divorce is that you can divide up most assets, including cash, between you and your soon-to-be ex-spouse without any federal...
Q&A: no 1099, No Deduction?
Ernie Neve, CPA
December 14, 2019
Imagine this: you didn’t issue Form 1099s to your contractors.
Now, the IRS is auditing your tax return, and the auditor claims you lose your deductions because you didn’t issue the Form 1099s. Is this correct?
No. IRS auditors often make this claim, but they are incorrect.
There is no provision in the tax law...
Healthcare?
Ernie Neve, CPA
December 12, 2019
Every year, at this time, we get bombarded at the office by folks trying to sort out there healthcare options for the next year.
Let me be simple and blunt: It’s going to take you some time to do it and trying to do it at the deadline is going to be painful.
Now, I know a lot of you have healthcare through an employer, but, depending on their policy,...
Charitable Contributions – Almost closed out!
Ernie Neve, CPA
December 10, 2019
Happy Holidays!
Like a lot of companies, my team and I plan out our charitable giving annually. We like to pick the organizations we’ll donate to and then, make those contributions throughout the year. Think about things like Breast Cancer in October or Autism Awareness in April. Additionally, some organizations allow company items, such as vehicles, to be...
Self-Employed Senior? Collect Your Rightful Tax Break
Ernie Neve, CPA
December 8, 2019
If you are self-employed, you have much to think about as you enter your senior years, and that includes retirement savings and Medicare. Here a few thoughts that will help.
Keep Making Retirement Account Contributions, and Make Extra “Catch-up” Contributions Too
Self-employed individuals who are age 50 and older as of the applicable...
TCJA Change Vacant Land Tax Strategies
Ernie Neve, CPA
December 7, 2019
The Tax Cuts and Jobs Act (TCJA) likely requires that you rethink the tax strategies you were using on your vacant land investments.
And the TCJA changes may be such that you have to rethink vacant land as an investment, at least for the years impacted by the TCJA.
Overview
The vacant lot and unproductive land are...
Don’t Get Lost in the Season…
Ernie Neve, CPA
December 5, 2019
It's the holiday season,
…And there’s no reason you need to let the stresses get to you.
Year after year, I have folks like you who let themselves get lost in buying and end up loaded up in debt come January and February.
I’m not trying to be a “humbug” about buying “stuff” and you and I both know there’s no...
Are You Ready?
Ernie Neve, CPA
December 3, 2019
Good Morning!
Like it or not, the end of 2019 is here.
From a tax point of view, if you still haven’t got all your paperwork and “stuff” in order, you’re woefully behind.
Now, it might be easy to hide behind all the things going on this month to allow you to neglect getting your ducks in a row, but let me share a secret with you:
No...
How Generosity Can Save You Money
Ernie Neve, CPA
November 27, 2019
It pays to be generous. No really! And we’re not just talking about moral gains—the benefit is financial as well. Your charitable contributions can actually result in some serious tax breaks. And more contributions count as charitable than you might think! According to the IRS, there are eight different types of organizations that qualify. Some are more...
Last Minute Tax Moves
Ernie Neve, CPA
November 20, 2019
Your Taxes shouldn’t require a Hail Mary play at the last minute, but that doesn’t mean there aren’t some year-end tax moves to help you out when you file next year. Here are several different things you should consider doing before December 31st to improve your tax situation.
- Spend the money in your flex-spending health care...
IRS Tax Tip
Ernie Neve, CPA
November 13, 2019
Taxpayers who are contacted by a private collection agency on behalf of the IRS might have questions about the program. These taxpayers can visit IRS.gov to find answers to questions they might have.
In fact, to better help these taxpayers, the IRS recently updated the private debt collection pages on IRS.gov. These updates added more information for taxpayers...
End of Year Tax Planning
Ernie Neve, CPA
November 6, 2019
By the time we get to April 2020, it’s going to be far too late to save anyone’s 2019 income taxes. At that point, we’ll just be recording history. And at my firm, that’s not what we like to do—we want to help you write the history that you want. That starts this month if it hasn’t already. How much time have you spent thinking about your 2019 income...
You Can't Cheat the IRS
Ernie Neve, CPA
October 30, 2019
Brian Becker and his wife, Lynn Becker, residents of New York had an outstanding balance owed to the IRS in excess of $224,000 for previous years of individual tax returns. The IRS revenue officer assigned to their case sent a Notice of Levy for their wages to both the Becker’s employers. After two months, the officer discovered that the IRS did not receive the expected wage...
Household Employee Question
Ernie Neve, CPA
October 23, 2019
Question: We have a nanny who watches our kids every day. She doesn’t live with us, so is she a household employee or an independent contractor?
Answer: This is a good question. Obviously, if you hire a babysitter once a month, they’re an independent contractor who is responsible for paying their own taxes. But that’s not the situation we are talking...
Solving Tax Problems
Ernie Neve, CPA
October 16, 2019
Question: Why should I use a tax resolution specialist? Can’t I deal with the IRS myself and save money?
Answer: You could opt to represent yourself before the IRS. There is the offer-in-compromise program. Some people do go that route. But representing yourself before the IRS is like going to court without a lawyer. I wouldn’t recommend that. Or, you can hire...
As We Head Into The Final Period...
Ernie Neve, CPA
October 9, 2019
October is one of the busiest times of the year for my family. Aside from it being my birthday month, my twin boys are turning 14, and my wife and I and I will celebrate our wedding anniversary. As you can imagine, this makes October a fun and exciting (and slightly crazy) month at my house. The right around the corner is Halloween, which the boys still really enjoy, and hockey is getting...
Back Tax Question
Ernie Neve, CPA
October 2, 2019
QUESTION: If I owe a lot of back taxes to the IRS, how do I know whether the offer in compromise or installment agreement is right for me? Who determines which option is best?
ANSWER: Thanks for your great questions and congratulations on beginning the process of tackling your tax debt head-on. Ultimately, you’ll have the final say on which option is best for...
Small Business Question
Ernie Neve, CPA
September 25, 2019
Question: I own a small business, and in order to keep afloat, I did not send the IRS my employee’s withholding taxes for a few years. How much trouble will I be in?
Answer: Owing 941 payroll taxes is very different from owing personal income taxes. Not only can the IRS padlock the doors to your business, but they can come after you personally, levy your bank accounts,...
Multiple Years Of Unpaid Taxes?
Ernie Neve, CPA
September 18, 2019
Question: I haven't filed a tax return for multiple years now. I realize this is a problem, but what can I do to fix it? Will I face massive fines? Could I end up in prison?
Answer: There are a few ways it could play out. If you were due a refund on your taxes, you're in a much better situation than if you had a tax burden for all those unfiled years. You'll need to...
Old-School Values With A Modern Approach
Ernie Neve, CPA
September 11, 2019
I come from a hard-working, entrepreneurial family. My father owned a fuel oil business when I was growing up. At that time, many homes in our area were heated with oil. My father was the home-heating-oil delivery man. He would bring oil to people’s houses, maintain their heaters and make sure every one of his customers always had heat. Mom took care of the business side of the company....
Getting Things Done
Ernie Neve, CPA
September 4, 2019
If you’re like me you’re always trying to find the perfect system for your office and home life. Disorganized efforts lead to poor results, and I'm constantly on the lookout for new ways to streamline and optimize my life.
One resource I keep coming back to, however, is David Allen’s “Getting Things Done” method. GTD was first...
Lessons On The Ice
Ernie Neve, CPA
August 28, 2019
My now 13-year-old boys started skating before they were even potty trained. I was blessed to start ice skating for hockey around 5 years old; my twin boys started even earlier. I knew that I had wanted them to have the opportunity to enjoy the game I love, so I took them to the rink for the first time just past their third birthday.
They’d only been skating for two months...
Who Will Write Your History?
Ernie Neve, CPA
August 21, 2019
Once upon a time, a married couple with two small kids moved out of their starter home. They both work and make decent money. They sold their house for $250,000. And moved into a $600,000 house—their dream home. Now they have a big mortgage with a big interest. And even bigger household expenses. They also have a higher property tax. They now have a dedicated home...
By the Time We Got to Woodstock...
August 14, 2019
Fifty years ago, a dairy farmer named Max Yasgur thought it would be a rockin' idea to rent his field to a bunch of kids who wanted to throw a concert. From August 15-17, 400,000 hippies, peaceniks, and plain old music fans converged on the scene. If you're a 60s fan, Woodstock represents the high point of that era, a giddy celebration of peace, love, and good vibrations. If you're a hung-up...
Now We Know Why They Call It A "Joy" Stick!
August 7, 2019
Parenting is full of special moments that create lifelong memories. Your heart bursts in joy as you watch them take their first steps, ride their first bike, and bring home their first report card. When they get a little older, there's the pride you feel when they bring home their first "real" paycheck, tear into the envelope, and listen to them wail in distress, "hey, what the &#@* is...
Blimey!
July 31, 2019
Great Britain's new Prime Minister, Alexander Boris de Pfefel Johnson, inspires the same sort of love/hate relationship as a certain novice head of state on our side of the pond. Johnson's fans celebrate him as a self-deprecating man of the people, happy to zip-line across a park waving Union Jacks to celebrate Olympic gold. His opponents mock him as a dangerous buffoon, a gaffe machine, and...
One Small Step . . .
July 24, 2019
Fifty years ago this weekend, in what many people consider the crowning accomplishment in all of human history, astronaut Neil Armstrong stepped foot on the moon. Eight years earlier, President Kennedy had challenged the nation, before the end of the decade, to land a man on the moon and return him safely to earth. An army of 400,000 scientists, engineers, administrators, and other dreamers...
The Perfect Crime
July 17, 2019
Everybody needs money. That's why they call it money. Maybe that's why the heist movie is still a Hollywood staple. It's been a while since we thrilled to classics like Heat, or Oceans 11, or The Sting. But who can resist the heist film's enticing promise: the coolest crew coming together to take the ultimate shortcut to the American Dream, the one huge payday that means never...
Billions
Ernie Neve, CPA
July 10, 2019
Showtime's hit series Billions invites us into the gilded life of Bobby "Axe" Axelrod, a working-class kid from Yonkers who makes his billions running a hedge fund. The camera teases us almost erotically with the spoils of his success: the $63 million Hamptons house he buys on a whim, the his-and-hers private jets he and his wife take when just one jet isn't enough, and the...
Presto Change-o
Ernie Neve, CPA
June 26, 2019
Back in December 2017, while you were finishing up your holiday shopping and spiking the eggnog, Congress spiked the tax code. The goal was simple. First, eliminate a bunch of deductions that made the whole thing more complicated. Then, take advantage of that broader base to cut overall rates. There's nothing radical about that sort of tinkering. The hard part is deciding which sacred cows...
Risky Business
Ernie Neve, CPA
June 12, 2019
Turn on any television, any time of day or night, and you're likely to see an insurance ad, or two, or a dozen. Flo is showing off her "name your price" tool, which sure looks like her company's way of saying "you may not be able to afford all the insurance you need, but we're happy to sell you whatever you can afford." There's the ubiquitous gecko, telling you his company sells...
Summer Reading for Tax Geeks
Ernie Neve, CPA
June 5, 2019
Memorial Day has come and gone, and while summer doesn't officially unlock the door and open for business until June 21, who's waiting? Craft beer fans are swapping out those dark malts that taste like tree bark, and stocking up on summer brews with hints of lemon, lime, and cherry. Sports fans are turning their eyes towards baseball's upcoming All-Star game. (Yeah, hockey and basketball are...
Tax-Free Smarts
Ernie Neve, CPA
May 29, 2019
Graduation season is here, and grads of all ages are excited to move on! Kindergartners are celebrating mastery of letters, shapes, and not eating crayons. Awkward eighth-graders just want to finish getting through puberty. High-schoolers are looking forward to careers, college, and moving out of their parents' nests. College grads are looking forward to crushing student debt and moving...
May the 21st Be With You
Ernie Neve, CPA
May 22, 2019
A long time ago in a galaxy far, far away (okay, on May 21, 1980), The Empire Strikes Backintroduced the world to Yoda, the oldest, most-powerful, and most syntactically-challenged Jedi knight in the universe. Yoda delighted audiences as he trained Luke Skywalker, launched him into battle against Darth Vader, and died peacefully at age 900, his body becoming one with the Force. Today,...
Oh, Baby!
Ernie Neve, CPA
May 15, 2019
On May 6, England's Prince Harry and his wife Meghan introduced the world to a baby with the delightfully British name of Archie Harrison Mountbatten-Windsor. The new royal is now seventh in line for the throne, which means he won't have to spend his life faking fascination with mundane royal duties like touring factories or christening ships. The poor kid doesn't even have a title, at...
Law and Order: Tax Crimes Unit
Ernie Neve, CPA
May 8, 2019
In the criminal justice system, tax-based offenses aren't considered especially heinous . . . but they still cost the government a ton of money. In field offices throughout the country, the dedicated Special Agents who investigate these expensive felonies are members of an elite squad known as IRS Criminal Investigation. (They're also the only IRS agents who get to pack heat, rock a Kevlar...
Superheroes of Tax
Ernie Neve, CPA
May 1, 2019
Last weekend, Hollywood made history. Disney's three-hour popcorn epic, Avengers: Endgamesent box-office records scrambling in panic, grossing $350 million here in the U.S. And $330 million in China. And $600 million more in another 43 countries. It's the first movie to top a billion dollars in its opening weekend. Endgame still has a long way to go before it catches Gone...
Pied-a-terrible
Ernie Neve, CPA
April 24, 2019
When it comes to raising revenue, governments usually find it most efficient to follow the immortal advice of bank robber Willie Sutton and go "where the money is." They turn to income, payroll, property, and sales taxes to fund most of their operations. They'll throw in the occasional gas tax or sin tax for fun. Most of the time, those "nuisance taxes" don't amount to much. But that's...
A Song of Fire and Taxes
Ernie Neve, CPA
April 17, 2019
Sunday night, millions of Game of Thrones fans who waited breathlessly for 20 months finally got rewarded with their next installment what's become the biggest TV show on the planet. Cersei discovered (redacted). Jon Snow learned that .... (sorry, no spoilers here). And that guy with the eye patch and flaming sword probably does great on Tinder. (Seriously, what fair...
Game of Taxes
Ernie Neve, CPA
April 10, 2019
On April 14, millions of fans will gather around the biggest screen they can find for the start of one final season in Westeros, the setting of George R.R. Martin's epic Game of Thrones. The show, which producers pitched as "The Sopranos in Middle Earth," has leaped from television into the broader culture. In 2013, 241 babies were named "Khaleesi" after the title Danaerys Targaryen...
Nobody's Perfect
Ernie Neve, CPA
April 3, 2019
Nobody really likes to pay taxes. It's no surprise, then, that so many people work so hard to avoid them. As humorist Fran Lebowitz once said, "a dog who thinks he is man's best friend is a dog who has obviously never met a tax lawyer." Truly proactive tax professionals like us understand that you don't just want to know how much you owe. You want us to use the ins and outs of the...
Change of Address
Ernie Neve, CPA
March 27, 2019
Moving to a new home can mark an exciting transition in life. Maybe you've just gotten married and you're settling into a real house after a series of walk up apartments. Maybe your children are finally out of the house and you're trading four bedrooms and a suburban backyard for lofty downtown sophistication. Maybe you're ready to retire and opt out of snowy winters for good.
Moving...
AP Fraud
Ernie Neve, CPA
March 20, 2019
Early on a Tuesday morning, FBI agents fan out across the country to arrest dozens of people in six states on racketeering charges and other offenses. The next Gambino family mob "rollup"? No, it's "Operation Varsity Blues" — the newest celebrity scandal, featuring CEOs and Hollywood stars bribing their children's way into competitive colleges! And, like with most good scandals, there's...
Batter Up!
Ernie Neve, CPA
March 13, 2019
Choosing where to live is one of the most important decisions we make on this journey we call life. Do we embrace the familiar comfort of the small town where we grew up, or do we strike off for fame and fortune in the big city? Do we celebrate new advances in home snowblower technology, or do we opt-out of winter entirely on a houseboat in the Keys? Choosing where to put down roots is an...
Always in Fashion
Ernie Neve, CPA
March 6, 2019
She's a long-haired European exotic beauty. She lives a life of glamour and luxury that most of us can only dream of. She has 300,000 followers on Instagram. She's earned $3 million in royalties and endorsements. She's launched fashion lines, and been the subject of two books. Oh, and she has absolutely no idea how much she pays in taxes, and she wouldn't care if she...
And The Oscar Goes To...the IRS
Ernie Neve, CPA
February 27, 2019
Oscar night is the biggest night in Hollywood. The stars shine just a little bit brighter. The red carpets stretch just a little bit farther. And the bloated egos get just a little bit bloatier, if that's possible. (Here's looking at you, Bradley Cooper.) Ironically, fewer and fewer of us tune in to the actual ceremony. Why give up hours of your life watching celebrities congratulate...
Don't Worry, No One will Notice
Ernie Neve, CPA
February 18, 2019
Would anyone in their right mind sit down from scratch and develop the tax withholding system we have today? The IRS publishes tables telling employers how much to take out of everyone's paycheck, depending on their income, their filing status, and the amount they guesstimate they'll be claiming in deductions and credits. Then, at the end of the year, employees file their actual returns and...
Q&A Avoiding the $100 a Day per Employee Penalty for S Corporations
Ernie Neve, CPA
February 11, 2019
You may have wondered why an S corporation can pay for or reimburse a solo owner-employee’s individually purchased health insurance without worrying about the $100-a-day penalty.
The answer is that the S corporation’s payments of the solo shareholder-employee’s individual health insurance premiums are exempt from the $100-a-day penalty.
The exemption does not...
IRS Clarifies Net Capital Gains in Final 199A Regulations
Ernie Neve, CPA
February 3, 2019
New tax code Section 199A can give you a tax deduction of up to 20 percent of your taxable income reduced by net capital gains.
In new final regulations, the IRS has given clarity to the capital gains component of the Section 199A tax deduction.
You may remember that the Section 199A tax deduction applies to your trade or business income from a pass-through entity such as a...
IRS Issues Final Section 199A Regulations and Defines QBI
Ernie Neve, CPA
February 1, 2019
Your ownership of a pass-through trade or business can generate a Section 199A tax deduction of up to 20 percent of your qualified business income (QBI).
The C corporation does not generate this deduction, but the proprietorship, partnership, S corporation, and certain trusts, estates, and rental properties do.
The tax code says QBI includes the net dollar amount of qualified...
Documents Needed To File Your Tax Return
Ernie Neve, CPA
January 29, 2019
Here it is: the list.
This is what you'll need to bring in for your tax appointment. Certain deductions went away this year, that we're used to handling on behalf of our clients. And some that you might be used to as well. This list has changed a little from past years, and we've notated additional changes coming down the pike.
Update on Claiming Business Deductions for Work-Related Education
Ernie Neve, CPA
January 28, 2019
As a small-business owner, you probably incur work-related education expenses from time to time. You may even decide to pursue an advanced degree, such as a Master of Business Administration (MBA).
You likely want your employees to be on a path of continuous improvement.
There’s much to know about how such business deductions work for both you and your employees. The Tax...
TCJA Tax Reform Sticks It to Business Start-Ups That Lose Money
Ernie Neve, CPA
January 25, 2019
The Tax Cuts and Jobs Act (TCJA) tax reform added an amazing limit on larger business losses that can attack you where it hurts—right in your cash flow.
And this new law works in some unusual ways that can tax you even when you have no real income for the year. When you know how this ugly new rule works, you have some planning opportunities to dodge the problem.
Over the...
Defeating the Kiddie Tax after the TCJA Tax Reform
Ernie Neve, CPA
January 24, 2019
If your family has trouble with the kiddie tax, you face some new wrinkles for tax years 2018 through 2025 thanks to the Tax Cuts and Jobs Act (TCJA) tax reform. This is one of the many areas where tax planning can pay off.
For 2018–2025, the TCJA tax reform changes the kiddie tax rules to tax a portion of an affected child’s or young adult’s unearned...
Puzzling Questions
Ernie Neve, CPA
January 23, 2019
Americans love puzzles, games, and brain teasers. Newspapers publish crossword puzzles, word-search puzzles, and word jumbles. Bookstores sell jigsaw puzzles. And airport gift shops stock Sudoku puzzles to pass the hours in the sky. We love puzzles so much that someone found their way to a basement office in Washington where the Department of Bogus Holidays litters our calendars with junk...
Seven Answers to Your Section 199A Questions
Ernie Neve, CPA
January 21, 2019
For most small businesses and the self-employed, the 20 percent tax deduction from new tax code Section 199A is the most valuable tax deduction to come out of the Tax Cuts and Jobs Act tax reform.
The Section 199A tax deduction is complicated, and many questions remain unanswered even after the IRS issued its proposed regulations on the provision. And to further complicate matters,...
Breaking! IRS waives penalty for many whose tax withholding and estimated tax payments fell short in 2018
Ernie Neve, CPA
January 19, 2019
WASHINGTON — The Internal Revenue Service announced today that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.
The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year...
Tax reform sticks it to business startups that lose money
Ernie Neve, CPA
January 19, 2019
There’s a provision in the Tax Cuts and Jobs Act that we believe is terribly unfair to business start-ups and struggling business owners.
You see, the rule prevents you from using all your business losses against non-business income if the losses are considered to be too large. (That determination is made by Congress.)
If you want to find out how this...
De Minimis or 179 Expensing or Bonus Depreciation?
Ernie Neve, CPA
January 18, 2019
Before tax reform, the de minimis safe harbor election was the best way to immediately expense the entire cost of your small-business assets for federal income tax purposes.
Now that the Tax Cuts and Jobs Act tax reform gives you 100 percent bonus depreciation through 2022, you have three possible reasons to use 100 percent bonus depreciation as your federal income tax...
Entertainment Facilities after the TCJA Tax Reform
Ernie Neve, CPA
January 17, 2019
Imagine this: your Schedule C business buys a home at the beach, uses it solely as an entertainment facility for business, pays off the mortgage, and deducts all the expenses.
Next, say, 10 years later, without any tax consequence to you, you start using the beach home as your own.
Is this possible? Yes. Are there some rules on this? Yes. Are the...
Tax Reform's New Qualified Opportunity Funds: Helpful or Hype?
Ernie Neve, CPA
January 9, 2019
Qualified opportunity funds are a new tax-planning strategy created by the Tax Cuts and Jobs Act tax reform.
The new funds have the ability to defer current-year capital gains, eliminate some of them later, and then on the new investment make capital gains tax-free. To put the benefits in place, you need to navigate some new rules and time...
Never Lose Sight of Survival
Ernie Neve, CPA
January 9, 2019
Movie fans, quick: what do you get when you combine Night of the Living Dead, Deliverance, and The Mist — with just a hint of Sophie's Choice? It probably looks a lot like like Netflix's newest hit, Bird Box. The movie imagines a shattered future where an unknown presence has driven everyone who sees it to suicide, and follows Sandra Bullock and two...
Tiny Violins for Very Large Men
Ernie Neve, CPA
January 7, 2019
2019 is here, and it's almost time to file your first tax return under the new law. But you probably sat around watching sports all weekend instead of talking taxes, didn't you. (Did Santa bring a new TV?) So, as we ring in the New Year, let's take a look at how the new tax bill affects some of those athletes you've been watching.
Washington sold the Tax Cuts and Jobs...
Avoid IRS Audits: Fix the 1099 Prepaid-Rent Mismatch
Ernie Neve, CPA
January 1, 2019
Two questions:
- Did you prepay your 2019 rent so that you have a big 2018 tax deduction?
- How do you identify in your accounting records the monies you put on your IRS Form 1099-MISC for the business rent payments to your landlord?
For the 1099-MISC, do you simply look at your checkbook or payment ledgers to identify the...
Ernie Neve – Plymouth Meeting Accountant on Facing the Wrath Of The IRS and Surviving
Ernie Neve, CPA
December 27, 2018
Link to the PODCAST >>> https://businessinnovatorsradio.com/ernie-neve-plymouth-meeting-accountant-facing-wrath-irs-surviving/
In this episode, host Neil Howe talks with Certified Public Accountant Ernie Neve of The Neve Group, LTD. Ernie helps...
Great Moments in Tax Litigation
Ernie Neve, CPA
December 26, 2018
Some of the greatest stories in America reach their dramatic finale in a courtroom. Who doesn't admire Gregory Peck as Atticus Finch standing up to racism in Jim Crow-era Alabama in To Kill A Mockingbird? Who can forget Tom Cruise baiting Jack Nicholson into bellowing out that yes, he did order the Code Red at the end of A Few Good Men? And who can't imagine the smile of...
Five last-minute year-end business deductions
Ernie Neve, CPA
December 25, 2018
Who says year-end tax planning has to be difficult?
If you know the tax law inside out (and we do!), there are easy steps you can and should take right now that will cut your tax bill big time.
What money-saving strategies can you put to work in the final days of December 2018?
You'll find out when you read my new article titled
Holiday Tax Advice From Epidemiologists
Ernie Neve, CPA
December 19, 2018
Holiday season is in full swing, and millions of Americans are celebrating with their favorite libations. Breweries are rolling out their winter brews. Wine stores are stocking up on champagne. And somewhere in a gentrifying warehouse district near you, a hipster bartender in a flannel shirt and man bun is crafting his favorite seasonal cocktail.
But alcohol can be a...
IRS BREAKING NEWS ON 2018 TAX FORMS
Ernie Neve, CPA
December 17, 2018
The IRS has posted the final 2018 Form 1040, U.S. Individual Income Tax Return, numbered Schedules 1 through 6 and the 1040 Instructions. The 2018 Form 1040 uses a “building block” approach so taxpayers with straightforward tax situations only need to file Form 1040, while those who need to provide supplemental information can use the new numbered schedules they need. For tax year...
IR-2018-251
Ernie Neve, CPA
December 14, 2018
WASHINGTON — The Internal Revenue Service today issued the 2019 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2019, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
•58 cents per mile driven for...
2018 Last-Minute Vehicle Purchases to Save on Taxes
Ernie Neve, CPA
December 7, 2018
Two questions:
Do you need a replacement business car, SUV, van, or pickup truck?
Do you need tax deductions this year?
Here are some ideas for you to consider:
1. Buy a New or Used SUV, Crossover Vehicle, or Van with a GVWR Greater than 6,000 Pounds
Let’s say that on or before December 31,...
2018 Last-Minute Year-End Tax Deductions for Existing Vehicles
Ernie Neve, CPA
December 7, 2018
It’s time to examine your existing cars, SUVs, trucks, and vans for some profitable year-end business tax deductions.
Your first step is to identify your gain or loss on sale. Once you have the gain or loss, know these basic rules:
Gains attributable to depreciation produce ordinary income.
Gains in excess of original basis produce...
2018 Last-Minute Year-End General Business Deductions
Ernie Neve, CPA
December 7, 2018
Your year-end tax planning doesn’t have to be hard. I have outlined below five strategies that will increase your tax deductions or reduce your taxable income so that Uncle Sam gets less of your 2018 cash.
Prepaying your 2019 expenses right now reduces your taxes this year, without question. While it’s true you kicked the can down the road some, perhaps you...
2018 Last-Minute Year-End Medical and Retirement Deductions
Ernie Neve, CPA
December 7, 2018
When you get busy with your business, it’s easy to forget about your retirement accounts and medical coverages and plans. But year-end is approaching, and now’s the time to take action.
I’ve included below six action steps for 2018 that can help you reduce your taxes and pocket extra money.
- Put your retirement plan in...
2018 Last-Minute Year-End Tax Strategies for Your Stock Portfolio
Ernie Neve, CPA
December 7, 2018
The beauty of tax planning your year-end stock portfolio is that it might cost you pennies in commissions but allow you to pocket real money.
Here’s the basic strategy:
Avoid the high taxes (up to 40.8 percent) on short-term capital gains and ordinary income.
Lower the taxes to zero—or if you can’t do that, then lower them...
2018 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family
Ernie Neve, CPA
December 7, 2018
Here are five year-end tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your business, and/or have situations where you give money to relatives and friends.
Put Your Children on Your Payroll
Did your children under age 18 help you in your business this year? Did you pay them for their...
2018 Last-Minute Year-End Tax Strategies for Marriage, Kids, and Family
Ernie Neve, CPA
December 7, 2018
Here are five year-end tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your business, and/or have situations where you give money to relatives and friends.
Put Your Children on Your Payroll
Did your children under age 18 help you in your business this year? Did you pay them for their...
Update on Claiming Business Deduction for Work-Related Education
Ernie Neve, CPA
December 7, 2018
As a small-business owner, you probably incur work-related education expenses from time to time. You may even decide to pursue an advanced degree, such as a Master of Business Administration (MBA).
You likely want your employees to be on a path of continuous improvement.
There’s much to know about how such business deductions work for both...
Paying Your Tax Bill With Magic Beans?
Ernie Neve, CPA
December 5, 2018
If you pay attention to financial news, you can't escape hearing about Bitcoin and other cryptocurrencies. Bitcoin is just like country music, Justin Bieber, and pineapple on pizza — people either love it, or hate it, but there's no middle ground. The billionaire Warren Buffet dismisses it as a "mirage," a "Buck Rogers" phenomenon, and "rat poison squared." But legions of fans see it...
Carrots Versus Sticks
Ernie Neve, CPA
November 28, 2018
Take a look at our Internal Revenue Code. No, really, take a good look. (You can buy it on Amazon for just $161.89: two thick paperbacks totaling 4,968 pages. You even get free Prime shipping!) At first glance, it's all about the revenue. For FY 2019, federal income taxes should hit nearly $1.7 trillion. Payroll taxes will top $1.2 trillion. Corporate taxes, $225 billion. And estate...
Over-the-Top Thanks for This Tax "Break"
Ernie Neve, CPA
November 21, 2018
Wall Streeters have a lot to give thanks for this holiday season. Earnings are up, so bonuses are up. And that, in turn, means taxes are up, too. The New York Post just reported that Wall Street Bankers Are Throwing Excessive Parties To Dodge Taxes. But will the wining and dining actually put money back in their pockets? Or is the tax angle just a convenient excuse to party up...
LeBron James Scoffs at These Taxes
Ernie Neve, CPA
November 14, 2018
If you were coaching your kid's basketball team, you wouldn't win many games if you told them to aim for the backboard. Your opponents might love you, but there would be at least one dad in the stands screaming at you the entire time. So why have some tax collectors given up aiming for the hoop and settled for rebounds?
At first glance, the tax code looks like...
Hey, Jealousy
Ernie Neve, CPA
November 7, 2018
Reality television has introduced us all to the joy of the "big reveal." HGTV specializes in this sort of story. The perky couple, handsome brothers, or plucky first-time homeowners spend most of an episode covered in plaster dust and paint. Then after the final commercial break, they pull back the curtain on the dream interior so viewers can feel inadequate about their own homes....
Accountants Behaving Badly, Part 40
Ernie Neve, CPA
October 31, 2018
Big-league baseball players like the ones who just wrapped up the World Series enjoy careers that last 5.9 years on average, and with 162 games per year, they enjoy lots of chances to be heroes. But eventually, even the best of them hang up their cleats and join the rest of us in the real world. The lucky ones find high-profile gigs running car dealerships or calling games from the broadcast...
A Scary Disconnect
Ernie Neve, CPA
October 24, 2018
Legend holds that in 1494, an Italian friar named Luca Pacioli was sitting under an apple tree when an apple bounced off his head. In a flash of insight, he invented the "double-entry bookkeeping" system where each entry has a corresponding and opposite entry to a different account. Those entries, called debits and credits, help accountants avoid headaches — if the debits and...
The Taxpayer Who Never Was
Ernie Neve, CPA
October 17, 2018
Life is full of ups and downs, and sometimes the downs can be so low that it doesn't feel like there's ever going to be an up again. How many people have dreamed of faking their own death and disappearing under a new identity, never to return to their problems again? It's called "pseudocide," and it's popular enough that novelists have a field day writing thrillers about it. John Grisham...
Don't Let These Guys Catch You Paying Taxes!
Ernie Neve, CPA
October 10, 2018
Streaming TV services like Netflix have changed how we watch television, dropping an entire season of a series at once for us to binge on. They've even breathed new life into "quality television," a phrase that used to provoke laughs from that insufferably smug type of person who used to brag that they didn't even own what we all used to call the "idiot...
Something to Fight About!
Ernie Neve, CPA
October 3, 2018
Fall is officially here, and that means whiskey season is back. Most drinkers probably don't think much about taxes when they visit their favorite bar or spirits shop. Liquor levies are generally based on volume, not price, so you pay the same amount of tax on a $4 fifth of Olde Ocelot as the swells pay for their $269 Pappy Van Winkle. But did you know that whiskey played a central role in...
All Fun and Games
Ernie Neve, CPA
September 26, 2018
Some of the world's most popular board games give players the chance to live out professional fantasies. Aspiring property sharks can cheat each other with the classic Monopoly. Would-be Sherlock Holmeses can track down killers with Clue. Armchair generals can settle down to an evening of Risk. But until today there's never been a game to let aspiring tax planners outwit the...
R-E-S-P-E-C-T the Plan
Ernie Neve, CPA
September 19, 2018
Aretha Franklin left this world with a musical legacy for the ages. The Queen of Soul started singing for her father's "gospel carnival tours" at 12, cut her first record at 18, and scored her first hit a year later. She went on to record 112 hit singles, including 20 #1s, and won 18 Grammies. She performed for presidents and even sang for a real queen (of England). When word broke...
Floating Palace, Indeed!
Ernie Neve, CPA
September 12, 2018
This week's story is a briny chowder of petty vandalism, tax avoidance, partisan posturing, and flat-out misinformation. There's probably something in here to offend everyone. So buckle your seat belts and get ready for a ride!
Education Secretary Betsy DeVos has been one of Donald Trump's most controversial cabinet officials since barely surviving Senate confirmation...
Can You Imagine the Smell?
Ernie Neve, CPA
September 7, 2018
The Infinite Monkey Theorem holds that if you sit an infinite number of monkeys down at an infinite number of typewriters, eventually one of them will bang out the complete works of William Shakespeare — or, at the very least, Hamlet. But do you know what those monkeys are banging out when they're not banging out Shakespeare? The Internal Revenue Code, of course! (Sadly,...
Mark's Terrible, Horrible, No Good, Very Bad Day
Ernie Neve, CPA
September 7, 2018
When Mark Zuckerberg was 19 years old, he launched Facebook from his Harvard University dorm room. (Some cynics might say "stole" is a better word than "launched," but who wants to start that debate?) Since then, he's made Facebook one of the internet's most valuable brands. And as he's done it, his net worth has climbed as high as $81.6 billion, making him the world's...
Awwww, He Has His Daddy's. . . Tax Break?
Ernie Neve, CPA
September 5, 2018
Mother Nature knew exactly what she was doing when she made babies cute. In fact, evolutionary biologists at Oxford University recently concluded they evolved that way to survive by encouraging the rest of us to look after them. "This is the first evidence of its kind to show that cuteness helps infants to survive by eliciting care-giving, which cannot be reduced to simple, instinctual...
IRS Loves "New" Math
Ernie Neve, CPA
August 22, 2018
As many of you know, I am the father of twin 12 year old boys. I am learning that parenting is full of all sorts of milestones. Some of them are precious, like your child's first steps, their first words, first time on skates, first hockey goal, oh yeah, and their first day of school. Some of them are less welcome, like a first broken bone, first stitches, or growing feet.
Love Stinks. Yeah, Yeah
Ernie Neve, CPA
August 15, 2018
The best marriages, so they say, age like fine wine. They gain richness, and color, and depth. They ripen and mellow as experience piles upon experience, bonding the couple and deepening the intimacy as husband and wife stroll hand-in-hand through the majestic tapestry of life. (Cue the rainbows, and unicorns, and George Harrison lyrics.)
Remy and Lara Trafelet didn't have that...
Now That's Shelter
Ernie Neve, CPA
August 1, 2018
Classic rock fans celebrated a milestone birthday on July 26: Rolling Stones front man and rock legend Mick Jagger turned 75! If that doesn't make you feel old, try these on for size: Aerosmith's Steven Tyler is old enough to collect maximum Social Security benefits. Cyndi Lauper still just wants to have fun, but now she's on Medicare. And 80s icon Madonna can finally take money from her IRA...
It Came From Under the Ground!
Ernie Neve, CPA
July 25, 2018
Earlier this month, archaeologists digging in Egypt unearthed a 2,000-year-old black granite sarcophagus 16 feet below the surface. Pretty cool, right? But then they announced they were going to open it. What a terribleidea! Have they never seen The Mummy? When the lid came off, they found three skeletons rotting in some dirty water that had probably leaked in from a...
Here's to Your Health!
Ernie Neve, CPA
July 18, 2018
When Congress raises the hood on the tax code, they're usually working to raise money to pay for government. But sometimes they're more interested in nudging us to behave in ways they can't legislate directly. Take the mortgage interest deduction, for example, which "cost" the Treasury $69.7 billion in 2013. That deduction encourages millions of Americans to spend billions of dollars buying...
Don't Cry 4-3, Argentina
Ernie Neve, CPA
July 11, 2018
Americans love a champion, and every year, sports fans get to see new champions crowned. We've got a World Series, a Super Bowl, and NBA finals that drag on for months. We've got the Kentucky Derby, the Indianapolis 500, and the Nathan's Famous National Hot Dog Eating Contest. And every even-numbered year, the Olympics bring us more exotic champions in curling, synchronized swimming, and...
Manly Men Doing Manly Things in a Manly Way
Ernie Neve, CPA
June 13, 2018
Back in the early 80s, a group of Democratic legislators decided to room together to cut the cost of staying in Washington for the three nights or so per week that Congress is in session. The motley crew included Representative George Miller of California (owner of the blue-gray house in Southeast DC), Senators Dick Durbin and Chuck Schumer, future Defense Secretary and CIA chief Leon...
Guaranteed Winners
Ernie Neve, CPA
May 30, 2018
On May 14, the Supreme Court struck down the Professional and Amateur Sports Betting Act that had made Las Vegas the only state where bettors could gamble on college and professional sports. (Sorry, wrestling fans, no betting for you. Spoiler alert — the matches are fixed.) Imagine how much louder your neighborhood sports pub will get when the obnoxious drunk at the end of the bar...
She Did It!
Ernie Neve, CPA
May 23, 2018
Early on Saturday morning, 29 million Americans woke up to take a break from school shootings, Russian collusion, and partisan gridlock to watch a California woman achieve a rare fantasy. The woman in question watched the sun rise as plain old Meghan Markle. But by the time it had set, she had become Her Royal Highness Meghan, Duchess of Sussex. (When she's in Scotland, she's the Countess of...
Have You Taxed a Ford Lately?
Ernie Neve, CPA
May 16, 2018
On May 2, fire broke out at the Meridian Magnesium Products of America plant in Eaton Rapids, Michigan. The factory supplies components to Audi, BMW, Daimler, Fiat, GM, Tesla, Jaguar and Mercedes. But their most important product may be the die-cut radiator "front bolster" supports in Ford's F-150 pickup. Workers pressure-feed molten magnesium into a mold, then rapidly cool it like Jell-O....
Free Agent Scores Spicy Signing Bonus
Ernie Neve, CPA
May 9, 2018
Baseball is back in swing, and several teams have already made it clear that they won't be contending for playoff berths. The Cincinnati Reds are leading that sorry pack, the first team to lose 20 games in the season. But the Orioles, White Sox, and Rangers are all nipping at their heels. If any of them are serious about winning this year, it might be time to take a look at signing some free...
Such a Bore
Ernie Neve, CPA
April 11, 2018
Everyone has a mental picture of what a tax professional or accountant looks like. Probably pretty boring, right? Dull. Predictable. Not quite smart enough to do useful work, like engineering. Definitely not slick enough for sales. Probably balding and paunchy, bleary-eyed from too many late nights at the office typing numbers into boxes on government forms. But that's not always...
Auditors on Deck
Ernie Neve, CPA
April 4, 2018
Baseball is back, even as some teams are looking at early-season snow days. My 12 year old twin hockey players are in their final year of little league and literally skated off the ice and on to the field for their first practice on Saturday. The new Phillies Field Boss Gabe Kapler is already taking major abuse because he is a stats geek- prepping spreadsheets to crunch numbers like WAR (Wins...
Where Does Cardi's Money Go?
Ernie Neve, CPA
March 28, 2018
If you know me, you know I like rap music. Yep, may be the only accountant that can beat box and rhyme with the best of them. Love a great tax story about a rapper. Here is one you will find interesting.
The rapper Cardi B grew up in the South Bronx's Highbridge neighborhood, where the median family income barely tops $27,000. Cardi, born Belcalis Armanzar, couldn't wait...
Ooops!
Ernie Neve, CPA
March 21, 2018
Back in 1985, a group of ambitious lawmakers set out to reform the federal income tax code. House Ways & Means Chair Dan Rostenkowski introduced the legislation. (This was before he became inmate #25338-016 at the Oxford Federal Correctional Institution.) Congress held dozens of hearings, cast 29 roll call votes, and debated 111 amendments on philosophical questions like Dan...
IRS Investigates Pot of Gold at End of Rainbow
Ernie Neve, CPA
March 14, 2018
St. Patrick's Day is here, and every "Irish for a day" tippler in your social circle will take advantage of this convenient excuse to haul grandma out of the house for a little day-drinking. (It seems unnecessary on a Saturday, but whatever.) It already started with this weekend's parade in Conshy. Faux-Irish saloons across America are tapping kegs of Guinness, pouring shots of...
Area Man Treats Colleague to Dinner, Drinks
Ernie Neve, CPA
March 7, 2018
The three-martini lunch has a long and mostly honorable history as a deductible business expense. As former President Gerald Ford once said, "Where else can you get an earful, a bellyful, and snootful at the same time?" Ford's successor, famed buzzkill Jimmy Carter, tried (and failed) to cut the deduction from 100% to 50%. The Tax Reform Act of 1986 succeeded in that goal, and today's...
Romantic Tax Collectors Love Valentine's Day, Too
Ernie Neve, CPA
February 14, 2018
It's February, and love is in the air. Restaurants are advertising intimate specials for two. Florists are rolling out the red carpet. And in the greeting card racks across the country, Hallmark's most accomplished poets are debuting their new verse.
We're talking about Valentine's Day, of course. 62% of Americans say they'll celebrate the occasion. (Of course, that means the rest...
Country Crooners Sing the Blues
Ernie Neve, CPA
February 7, 2018
Country music embraces a long tradition of songs about sadness and ruin, heartbreak and pain. It just makes sense, then, that country music sometimes runs afoul of the tax system. Most famously, Willie Nelson found himself on the wrong side of a $16.7 million tax bill. And outlaw country icon David Allen Coe, who penned Take This Job and Shove It, drew three years probation and $980,000 in...
Two-Tired to Fight About It
Ernie Neve, CPA
February 1, 2018
When you think of "federal crime," you probably think of big-ticket offenses like mail fraud, identity theft, and tax evasion. But our criminal code is also full of, shall we say, lesser offenses. For example, according to the Crime a Day Twitter feed, "18 USC §1854 makes it a federal crime to cut, chip, or chop a government-owned tree to get turpentine out of it." 7 USC §8313...
Two-Tired to Fight About It
Ernie Neve, CPA
January 28, 2018
When you think of "federal crime," you probably think of big-ticket offenses like mail fraud, identity theft, and tax evasion. But our criminal code is also full of, shall we say, lesser offenses. For example, according to the Crime a Day Twitter feed, "18 USC §1854 makes it a federal crime to cut, chip, or chop a government-owned tree to get turpentine out of it." 7 USC...
iTaxes Version 38 Billion.0
Ernie Neve, CPA
January 24, 2018
In 2016, SyFy debuted a new show called Incorporated about a dystopian future where corporations, not governments, rule the world. If that nightmare ever comes true, we all know which real-world corporation will rule them all. It's Apple, of course, which just took the shrink-wrap off their $5 billion ring-shaped headquarters in Cupertino, CA and is on the verge of becoming the...
How Will I Know?
Ernie Neve, CPA
January 17, 2018
In 2012, the singer Whitney Houston died suddenly, drowning in a hotel bathroom after years of battling drug addiction. Yet the world will always treasure her musical legacy. The Guinness Book of World Records reports that she was the most awarded female artist of all time, with two Emmys, six Grammys, 30 Billboard Music Awards, and 22 American Music Awards, among 400+ awards in...
NFL Playoffs: Blue States Versus Red
Ernie Neve, CPA
January 10, 2018
NFL playoffs have begun, and Wild Card Week featured some real competition. On Saturday, the red-state Tennessee Titans barbecued the red-state Kansas City Chiefs, 22-21, and the red-state Atlanta Falcons defeated the blue-state Los Angeles Rams, 26-13. On Sunday, the purple-state Jacksonville Jaguars pounced on the blue-state Buffalo Bills, 10-7, and the red-state New Orleans Saints marched...
2018 TAX SAVING OPPORTUNITY!
E
January 4, 2018
Welcome to 2018! This year we’ve got a lot more going on than usual, so let’s get right to it.
The Tax Cuts and Jobs Act of 2017. Learn it. Live it. Love it. This is an excellent opportunity to save taxes! You can jump on it. Or you can let it slip through your fingers.
Seriously. Right now, as you read these words, somewhere in America a...
He's Mister Tax Miser
Ernie Neve, CPA
January 3, 2018
Welcome to 2018! New Years' always brings changes to taxes. Key numbers, like tax brackets, standard deductions, personal exemptions, and qualified plan contribution limits, all roll over on January 1. But this year brings more change than any year since 1987. Washington has just passed a sweeping overhaul of the entire tax code, from working individuals all the way to multinational...
We Now Interrupt This Broadcast . . .
Ernie Neve, CPA
December 27, 2017
On Sunday, October 30, 1938, Mercury Radio Theatre fans, who were listening to Ramon Racquello and His Orchestra, were interrupted by a news broadcast reporting an odd explosion on the planet Mars. Soon after, they learned that a cylindrical object had fallen on a farm in Grovers Mills, New Jersey. The radio audience listened in horror as a pulsating Martian emerged from the...
The Twelve Days of Taxmas
Ernie Neve, CPA
December 20, 2017
Every year, PNC Bank publishes their "Christmas Price Index" to track the cost of the Twelve Days of Christmas. For 2017, it's a hefty $157,558. (And you thought your holiday spending was out of control!) The index may not be completely accurate — for example, the ten lords-a-leaping are valued using the cost of male ballet dancers, rather than actual...
A Different Kind of Holiday Party
Ernie Neve, CPA
December 13, 2017
Your kids have finally finished eating their Halloween candy, which means that the real holidays are right around the corner. But before you sit down to open presents, December 16th marks the 244th anniversary of an important holiday in tax history — a pop-up costume ball in Boston Harbor called the Boston Tea Party.
From 1698 through 1767, Britain's Parliament passed...
Area Actress to Wed Ex-Soldier
Ernie Neve, CPA
December 6, 2017
Two hundred and forty one years ago, we declared our independence from Mother England — over taxes, of course. But here on our side of the pond, we've never completely lost our affection for all things British. We applauded as the Queen celebrated her 70th wedding anniversary. Netflix fans who just finished binge-watching Stranger Things are eagerly awaiting Season Two...
Good Guys Share $175 Million Refund
Ernie Neve, CPA
November 28, 2017
April 15 hasn't always been the national exercise in self-flagellation that it is today. Up until the 1940s, you could just waltz into your local IRS office and they would do your taxes for you. But those days have long since passed. You're still welcome to do it yourself, if you need more stress in your life. But how will you know if you're paying too much? Even software like TurboTax can't...
Ivy League Tax Problems
Ernie Neve, CPA
November 22, 2017
They say that "what goes up must come down." But that's not true when it comes to college costs. U.S. News reports the average private college tuition stood at $16,233 back in 1997-98 — roughly $24,973 in 2017 dollars. But the same tuition today costs $41,727. And that's before pricing in luxuries like, you know, meals, and a place to sleep. In-state college costs are...
Year End Tax Move - Vehicle Purchase
Ernie Neve, CPA
November 19, 2017
If you know me, then you know I LOVE CARS, and CAR SHOPPING! It's even better when I can combine a vehiicle purchase with a business tax write off!
As the end of the year approaches, it’s a good time to think of planning moves that will help lower your tax bill for this year. One strategy that will provide big tax deductions is purchasing a vehicle.
If you’re...
November 2017 Tax Tips
Ernie Neve, CPA
November 18, 2017
Using Children’s IRAs to Pay for College
If your child has earned income (maybe from working in your business), you may want to consider establishing an IRA for your child. The IRA funds can, in turn, be used to help pay your child’s college expenses. When your child withdraws money from an IRA, tax law imposes taxes on the withdrawals, but no 10...
The Rock Star, The Nude Estates, and the Lithuanian Shopping Mall
Ernie Neve, CPA
November 15, 2017
We've all got an image in our minds of who uses "offshore tax havens" to host their business. Let's say you're a junior-varsity Russian oligarch. You've spent a lifetime looting your country's resources like an all-you-can-steal buffet, and now it's time to take some of your chipskis off the table. You buy a flat in London's posh Mayfair, or maybe a condo overlooking New York's Central Park....
Stranger Taxes
Ernie Neve, CPA
November 8, 2017
The streaming video service Netflix has earned a reputation for providing quality content like Narcos, Orange is the New Black, and The Queen. But Netflix has also upended how millions of people consume television. How have they done that? By dropping an entire season's worth of a series all at once, letting you "Netflix and chill" with a single episode or binge for an entire...
Talk About "Prime" Real Estate!
Ernie Neve, CPA
November 1, 2017
Former President Jimmy Carter once called our tax code "a disgrace to the human race," and there's really not a lot to like about it. There's at least some consolation, though, in the fact that we're all stuck with the same maddening rules. If you and your spouse file jointly, and your ordinary taxable income is $100,000, you'll pay the same amount as any other joint filers reporting the same...
For the Love of Art
Ernie Neve, CPA
October 25, 2017
In today's new Gilded Age, Americans are constantly vying to one-up each other. You show up at your high-school reunion in a new Mercedes E-Class; then your classmate pulls up in a Maserati Quattroporte. (Some would call it a $50,000 car with a $50,000 hood ornament, but still, it's a Maserati.) You show off a picture of your 42-foot sloop; your neighbor whips out his phone to show off his...
Tax Strategies for Trick or Treats
Ernie Neve, CPA
October 18, 2017
Halloween is almost here, and if it seems like things have changed since you were a kid, you're right! Halloween has become big business, with the National Retail Federation predicting Americans will spend $9.1 billion on the festivities. That includes $3.4 billion on costumes, with top choices being superheroes, animals, princesses, witches, vampires, and zombies. And, "pets will not be left...
The Long and Short of It
Ernie Neve, CPA
October 11, 2017
Consumer surveys consistently show that CPAs are the most trusted financial advisors of all. But what happens in the rare instance when you can't trust your CPA? Nothing good, that's for sure!
Back in 2001, John Baldwin helped engineer a deal to sell Louisiana's Delta Downs racetrack for a $74 million profit. Baldwin took a $10 million fee for his work, along with some hefty interest...
They Hate Him at the IRS, Too
Ernie Neve, CPA
October 4, 2017
We live in an unfortunate era of disunity. Cultural divides, racial divides, religious divides, and political divides are threatening to tear America apart. Every so often, though, someone comes along to unite us all in a great primal scream of rage. Remember "Pharma bro" Martin Shkreli, who bought the company that manufactures the prescription Daraprim, then jacked the price from $13.50 to...
Too Tasty for the IRS
Ernie Neve, CPA
September 27, 2017
Most of us like to eat, even if we choose to deny ourselves this pleasure from time to time. And those of us with an entrepreneurial bent often dream of opening a restaurant. Sometimes it's a bustling cafe fronting a busy urban sidewalk. Sometimes it's comfort food served on a rural byway. And when the dream works, it really is a dream. Just ask celebrity restaurateurs...
Sink Your Teeth Into This One
Ernie Neve, CPA
September 20, 2017
"You better cut the pizza in four pieces because I'm not hungry enough to eat six."
Yogi Berra
The calendar is full of little-known commemorations that probably escape your attention, and this month is no exception. Some of them are just silly, like September 19's International Talk Like a Pirate Day. (Although, really, if you don't think pirates are cool, what's wrong with...
Sink Your Teeth Into This One
Ernie Neve, CPA
September 20, 2017
"You better cut the pizza in four pieces because I'm not hungry enough to eat six."
Yogi Berra
The calendar is full of little-known commemorations that probably escape your attention, and this month is no exception. Some of them are just silly, like September 19's International Talk Like a Pirate Day. (Although, really, if you don't think...
Help With Help
Ernie Neve, CPA
September 13, 2017
Ordinarily we use this space for lighthearted stories that poke fun at the tax system and some of the clever ways that people endeavor to make it work for them, successfully or not. But the recent stories coming out of Harvey-ravaged Texas and Irma-ravaged Florida suggest a more serious tone for a change. Today we're going to walk through some tax-related opportunities when it comes to...
Help With Help
Ernie Neve, CPA
September 13, 2017
I am absolutely thrilled to see many people, businesses, and organizations helping out hurricane victims in Texas and Florida. I am doing as much as I can to help as well.
Ordinarily we use this space for lighthearted stories that poke fun at the tax system and some of the clever ways that people endeavor to make it work for them, successfully or not. But the recent stories...
$50 Million, Hut!
Ernie Neve, CPA
September 6, 2017
The 2017 college football season kicked off this week, and for most people that means talk of pre-season polls, Heisman trophy hopefuls, and BCS championship prospects. But we're not "most people," are we? So today we're going to ignore all that boring on-field action and see how one coach's financial advisors lined up the X's and O's to outwit the defensive line at the IRS.
Here's a...
$50 Million, Hut!
Ernie Neve, CPA
September 6, 2017
The 2017 college football season kicked off this week. My alma mater Buffalo kept it close, but couldn't spoil the party for Minnesota's highly acclaimed new coach, TJ Fleck (I do like that guy - we could all learn from the high energy way he leads.) Notre Dame and a new QB took down Temple.
For most people, college football means talk of BCS polls and Heisman trophy hopefuls. But...
A Match Made in Dallas
Ernie Neve, CPA
September 1, 2017
Where is "home"? Home is where the heart is. Home is wherever you make it. Home is wherever I'm with you. And, of course, I'll be home for Christmas. But what does the tax man think of all of this?
In 2009, Greg Blatt was Executive Vice-President, General Counsel & Secretary of InterActive Corp (IAC), which ran 150+ web sites including About.com, Vimeo, and The...
TurboTax Made Me Do It
Ernie Neve, CPA
August 23, 2017
One of the highlights of living in our technologically-advanced age is the ability to buy tools to do almost anything. If your kid fractures his arm playing baseball, you can hop on over to Amazon and order an orthopedic bone saw for less than the cost of a tank of gas. Then you can (probably) head over to YouTube and watch a video explaining how to smooth off the rough edges and set it for...
Oops!
Ernie Neve, CPA
August 16, 2017
Mark Twain once said, "Never put off till tomorrow what may be done the day after tomorrow just as well." But Twain's advice doesn't always pay when it comes to taxes. Right now my team and I are in what we call extension season. Basically between now and September 15 (for businesses) and October 15 (for individuals) we finish 2016 tax returns for filers that, for whatever reason, haven't yet...
Bottoms Up!
Ernie Neve, CPA
August 9, 2017
What were you doing at the end of your day on Friday, August 4? Were you knocking back a bottle of suds at your favorite happy-hour bar? Enjoying vacation time with a cold one overlooking a beach or a harbor? Maybe feeling ripped off paying $14 for a tallboy of St Louis's finest at your local ballpark? Well, hopefully you were doing something like that, because the first...
Making More By Paying Less
Ernie Neve, CPA
August 2, 2017
When affluent clients want to pay less tax, they turn to accountants, attorneys, and financial advisors, among other advisors. And we can make a nice living helping clients accomplish that goal. (At the risk of sounding self-serving, it's because we're worth it.) But you won't find any tax professionals populating the Forbes 400, or your hometown paper's list of richest local...
How to Avoid IRS Scams
Ernie Neve, CPA
August 1, 2017
Avoid scams. The IRS will never initiate contact using social media or text message. First contact generally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find
Check Withholding Now to Avoid Surprises at Tax Time
Ernie Neve, CPA
July 25, 2017
The federal income tax is a pay-as-you-go system. Employers generally withhold tax from workers’ wages. Taxpayers also often have taxes withheld from certain other income including pensions, bonuses, commissions and gambling winnings.
People who do not pay tax through withholding, like the self-employed, generally pay estimated tax. In addition, those who earn income such as...
Caliente
Ernie Neve, CPA
July 19, 2017
Summer is here, and in the greater Tri-State area, it's hot! The All-Star game has come and gone (home run contest was much better Tv!), dog days are right around the corner, and if your air conditioner makes a funny noise, the hair stands up on the back of your neck. Now, we can't help you if your air conditioner breaks (but could refer you to one of our clients), but we can try and put a...
Accountants Behaving Badly
Ernie Neve, CPA
July 12, 2017
Actress Alyssa Milano first gained fame playing Tony Danza's daughter on the television sitcom Who's the Boss. The show ran for eight seasons, snagged ten Emmy and five Golden Globe nominations (winning one of each), and established Milano as a bone fide teen idol. While her star has dimmed since then, she continues to work in Hollywood and seems to be one of the few child stars in...
IRS Slapshot Misses
Ernie Neve, CPA
July 5, 2017
Those of you reading this who know me likely know I have been a hockey player all my life. My real hockey stopped after college, but I continue to live out my dreams in Beer League! And of course nothing is better than teaching my 11 year old twin boys to love the game.
Summer is here, so naturally, everyone's thinking about hockey. Well, I am anyway. The hated Pittsburgh...
Clean Tax Savings Here
Ernie Neve, CPA
June 28, 2017
Businesses generally try to get the highest price possible for their products. It's called "capitalism," and it generally works to establish "equilibrium prices" between knowledgeable buyers and willing sellers. But every so often, this mechanism breaks down and prices soar, resulting in howls of "price gouging!" from ticked-off customers. This is especially true with pharmaceuticals. In...
This Is Spinal Tax
Ernie Neve, CPA
June 21, 2017
In 1984, the documentary filmmaker Marty Di Bergi scored a hit with This is Spinal Tap, a look inside Britain's loudest band and their 1982 Smell the Glove concert tour. Lead singer David St. Hubbins, lead guitarist Nigel Tufnel, and bassist Derek Smalls, were joined by a series of drummers who died under mysterious circumstances, including spontaneous combustion and a bizarre...
Does Your Money Need a Passport?
Ernie Neve, CPA
June 14, 2017
Economic inequality is a hot topic in today's world. Researchers here and abroad consistently show the top 1% of earners gobbling a disproportionate share of gains throughout the world. This trend has more and more thinkers debating what to do about it. Do we redistribute the pie, so that everyone has a more equal share? Or do we grow it so that everyone can have a bigger slice?...
Trigger Warning: Snakes
Ernie Neve, CPA
June 7, 2017
What scares Americans most? It's not the IRS, or public speaking, or even sharks. No, the answer, as you probably guessed, is snakes. Gallup once polled 1,016 American adults, and found that fully 51% of us are afraid of the scaly, coldblooded carnivores. Snakes have been bad guys going as far back as the Book of Genesis, when the serpent tempted Eve with an apple. And they've terrorized the...
No Soup For You!
Ernie Neve, CPA
May 31, 2017
November 2nd, 1995, was a delicious day in television history. That's when Jerry Seinfeld and the rest of his gang introduced us to the "Soup Nazi", a stern-looking chef who demands his customers follow his obsessive rules for lining up and ordering. The Soup Nazi didn't win any awards for customer service, but his soup was so good that customers lined up around the block for it anyway....
Hitting a Tax Gapper
Ernie Neve, CPA
May 24, 2017
Summer is almost here, and sports fans across America have a lot to look forward to. Basketball's 13-month-long season is (finally) starting to heat up. Hockey playoffs are coming to a close. Baseball is in full swing, and NFLers are about to report to training camps. Stop at any bar or water cooler in the land, and you'll hear talk of wins, losses, and plays that you just have to...
"And the Award Goes To..."
Ernie Neve, CPA
May 17, 2017
Right now, all across America, thousands of talented youngsters are dreaming of careers in performing arts. Whether they aspire to be the next Meryl Streep, or Taylor Swift, or Lin-Manuel Miranda, they understand the odds of success are long. But they still dream that one day they'll find themselves in the audience at the Oscars, the Grammys, or the Tonys, waiting with their hearts in their...
Taxing the Roses
Ernie Neve, CPA
May 10, 2017
Every year on the first Saturday in May, an enormous crowd of socialites, "turf investors," and people just looking for a party descends on Churchill Downs for the Kentucky Derby. It's an unforgettable pageant of mint juleps, fashionable hats, and the most exciting two minutes in sports. This year, the favorite Always Dreaming leaped first out of the gate, left challenger Battle of Midway...
The Taxing History Behind Cinco de Mayo
Ernie Neve, CPA
May 3, 2017
Americans are great at taking perfectly serviceable holidays and turning them into excuses for parties. On St. Patrick's Day, millions of Irish-for-a-day drinkers belly up to their favorite fake Irish bar to down pints of Guinness and shots of Jameson. Next on the calendar is Cinco de Mayo, when all those same St. Paddy's fans become Mexicans for a day to down...
Why Did the Loophole Cross the Road?
Ernie Neve, CPA
April 26, 2017
We've just made it through our annual exercise in self-flagellation known as "tax filing season." And who's fault is that? Don't blame the IRS, blame the Congress that wrote the four million-odd words that make up the tax code. So it's always refreshing to see someone inside that particular lion's den take a critical look at what Congress has wrought.
Jeff Flake is a freshman Senator...
Monopoly Money
Ernie Neve, CPA
April 19, 2017
In 1935, Americans were mired in the depths of the Great Depression. Gross domestic product had shrunk from $103.6 billion in 1929 to $73.3 billion. Unemployment stood at a horrendous 20.1%. Even the suicide rate was higher during those dark years. And on February 6th of that year, the Parker Brothers company started selling an escape from all that misery: a family-friendly board game that...
What Would You Do for a Klondike Bar?
Ernie Neve, CPA
April 12, 2017
In 1982, Unilever came up with a catchy jingle to sell Klondike bars, a sort of Eskimo pie without a stick: "What would you do for a Klondike Bar?" The challenges weren't especially grueling. Would you make monkey sounds? Act like a chicken? In one spot, a boneheaded dudebro actually listened to his wife talk (about painting the foyer yellow) for five seconds to get his...
Batter Up!
Ernie Neve, CPA
April 5, 2017
Baseball is back! And that means tax day is almost here! If you don't already know (due to emancipation day) this year's final deadline is Tuesday, April 18, 2 weeks away. If we have the privilege of preparing your tax returns this year, thank you! Please know that we value your business and appreciate your patience during our peak season. Please call or email our office if you have any...
I, Robot
Ernie Neve, CPA
March 29, 2017
For decades now, governments across the world have struggled with where to impose taxes to raise the revenue they need to offer modern services. Should they simply raise rates? Should they broaden the base by eliminating loopholes and deductions? Should they sock it to smokers, drinkers, or other disfavored groups? How about entirely new levies designed to influence behaviors, like a carbon...
Rich as Rockefeller
Ernie Neve, CPA
March 22, 2017
Last week marked the end of an era as David Rockefeller, the last grandchild of Standard Oil baron John D. Rockefeller, died at age 101. Rockefeller, whose name was once synonymous with "wealth," symbolized the eastern establishment in all its glory. His death marks a last living link to an age of robber barons-turned-philanthropists whose fortunes still shape our nation.
Patriarch...
Monkey Business
Ernie Neve, CPA
March 15, 2017
One of my favorite Roman Mythology characters of all time was the hero Hercules. He used his divine strength to smash through the mountain that used to be Atlas. This dude would have been some crossfitter! This created the Straits of Gibraltar, linked the Atlantic and the Mediterranean, and forged the famed...
Fixed This for You
Ernie Neve, CPA
March 8, 2017
For generations, Americans fostered a culture of thrifty self-reliance, especially where it comes to taking care of our stuff. It started all the way back in pioneer days, and living on the frontier's edge. Back when Pa Ingalls lived in that little house in the big woods, if his saw broke, he couldn't just order up a replacement on Amazon. He had to fix it, or he would have a tough time...
Names!
Ernie Neve, CPA
March 1, 2017
Every year, the IRS gives us a peek inside the wallets of the highest-earning 400 Americans. It's full of juicy facts like their average income ($318 million in 2014), how much they give to charity ($37 million each) and how much they pay Uncle Sam ($73.5 million). But there's one set of facts the IRS guards as carefully as the...
Survey Says...!
Ernie Neve, CPA
February 22, 2017
The people who work at the IRS can be proud to do an important job. They're the "accounts receivable" department for the federal government, and whether you think we need more government or less, we should collect the revenue to finance it as effectively as possible. Treasury Secretary Mnuchin has already stated that the incoming administration's ban on new government hiring shouldn't apply...
Better Call Saul!
Ernie Neve, CPA
February 15, 2017
On January 20, 2008, AMC debuted a promising new drama called Breaking Bad. I don't have time to watch TV so I watched it much later but it quickly became a favorite. The series chronicled the highs and lows of high-school chemistry teacher Walter White, who was diagnosed with terminal lung cancer and put his knowledge to work opening a meth lab to secure his family's financial future....
"Step Away From That Soda, Sir..."
Ernie Neve, CPA
February 1, 2017
As many of you already know, if your business or rental property is located within the Philadelphia city limits, or if you do any business in Philly, they already make you pay dearly with the birt tax. To add further insult, last year, the Philadelphia City Council slapped a 1.5 cent-per-ounce tax on soda and artificially-sweetened drinks. The new tax, which became effective on January 1,...
Possible Business Tax Deductions
Ernie Neve, CPA
January 25, 2017
Accounting fees
Advertising
Amortization
Auto expenses
Bad debts that you cannot collect
Banking fees
Board meetings
Building repairs and maintenance
Business association membership dues
Business travel
Cafeteria health-insurance plan (requires plan)
Charitable deductions made for a business purpose
Cleaning/janitorial services
Politicians Behaving Badly
Ernie Neve, CPA
January 18, 2017
(Hard to believe, right?)
Last week, we presented three stories from the IRS Criminal Investigation unit's most recent annual report outlining their work to protect the Treasury's revenue from grifters, cheats, and cons. It's a "true crime" fan's favorite IRS report that puts TV cop dramas to shame....
Creepy Little Elf Has Nothing on the IRS
Ernie Neve, CPA
January 4, 2017
Well, the Elf on the Shelf has flown back to the North Pole, and I could not be more sad. My 11 year old twin boys wait all year for their favorite holiday (although I like to remind them it's pretty much Christmas every day for them), and really enjoyed getting up each morning since Thanksgiving to see where our elf "Elfie" was hiding.
If you have kids and you celebrate...
Tax Thoughts for the New Year
Ernie Neve, CPA
December 28, 2016
2017 is likely to be a big year for taxes. House Speaker Paul Ryan and President-elect Donald Trump haven't been shy about their New Year's resolutions to rewrite the tax code, and we could be in for quite a ride. So here are some thoughts to start exercising your 2017 tax-planning muscles:
• "If you get up early, work late, and pay your taxes, you will get...
Christmas Tax Breaks for Christmas Trees
Ernie Neve, CPA
December 21, 2016
'Tis the season to be jolly, and how jolly could we be without Christmas trees on display? For some of us it's the classic Pinus Sylvestris, or scotch pine. For others it's the soft-needled Abies fraserie, or Fraser fir. Still more make do with the store-bought plasticus annualensis, or "Target special." (Artificial trees can be beautiful, too!) Christmas trees are a festive symbol of holiday...
Sweet!
Ernie Neve, CPA
December 14, 2016
December is a busy month for holidays, what with Christmas, Hanukkah, and Kwanzaa all crowding calendars. But there's a lesser-known holiday that falls on December 16 that we don't want you to miss. It's not Ugly Christmas Sweater Day or Free Shipping Day (although those are both fun, too). We're talking, of course, about the obvious celebrations surrounding Chocolate Covered Anything Day....
Year End Tax Tips
Ernie Neve, CPA
December 12, 2016
Where did the time go? The year is quickly drawing to a close, but there’s still time to take steps to reduce your 2016 tax liability. Here are seven last-minute tax-saving tips to consider — you just must act by December 31:
1. Pay your 2016 property tax bill that’s due in early 2017.
2. Pay your fourth quarter state income tax estimated payment that’s...
400 Cigar-Chomping Fat Cats Aren't Enough Anymore
Ernie Neve, CPA
December 7, 2016
Author F. Scott Fitzgerald, who brought us the Great Gatsby among other well-heeled characters, once said the rich are very different from you and me. To which Fitzgerald's jazz age compatriot Ernest Hemingway sarcastically retorted, "Yes, they have more money." But how much more money do they really have? Nosey parkers want to know!
Every year, the financial snoops at the IRS...
Over the River and Through the Woods
Ernie Neve III, CPA
November 30, 2016
Thanksgiving is a time for homecoming, and some of us are fortunate to return to a place where we've spent decades of holidays. Who wouldn't relish celebrating in a cozy farmhouse out of a Norman Rockwell print, with an overstuffed chair in front of a crackling fire and a warm kitchen smelling of pumpkin pie?
But these days, more Americans spend their Thanksgiving in a different...
Talking Turkeys On Taxes
Ernie Neve III, CPA
November 23, 2016
A hardy band of refugees board a leaky wooden boat, just 106 feet long to hold 132 of them, and set off for freedom across an unknown sea. Syrian refugees fleeing sectarian violence? Cuban marielitoes risking wretched lives to escape Castro's brutal regime? No . . . it's November, so we must be talking about the Pilgrims and the Mayflower.
William Bradford, Myles Standish, and...
All You Need Is Love
Ernie Neve III, CPA
November 16, 2016
No matter who we voted for, we can all agree that this has been the nastiest presidential election since Thomas Jefferson called John Adams a hermaphroditic bastard. This week it's finally (finally!) come to an end. Whether you're elated or nauseated by the results, there's probably one emotion you share with most Americans right now: relief that the campaign is over. You've taken a long hot...
We Won Best of Montco CPA Firm for the 6th straight year!
July 10, 2016
The Neve Group, LTD. has won BEST OF MONTCO CPA Firm for the 6th straight year! Thank you to all who voted. We truly appreciate your
Philadelphia Tax Accountant Talks About Great Financial Communication in a Marriage
June 4, 2015
The Neve Group has won Best of Montco, Accounting Firm/CPA Category for the past four years running, and we ask that our clients, friends, and followers vote for us...
Ernie Neve Discusses Spending Your Money WELL
May 29, 2015
“One resolution I have made, and try always to keep, is this: To rise above the little things.” -John Burroughs
Creating a budget really shouldn't be the place where financial decisions begin. Instead, a comprehensive look at what you most care about and how you want to live your life is the best place to start, even before budget categories are determined.
This...
Philadelphia Tax Accountant On Doing an Estate Plan WELL
May 22, 2015
A year from now you may wish you had started today.” – Karen Lamb
Over 50% of adults do NOT have a will or other estate planning instruments in place to protect themselves and their family. And, perhaps even worse, over 69% of parents have not yet named legal guardians who can raise their children if something happens to them.
Those are scary numbers....
Philadelphia Tax Accountant Helps You Evaluate Your Finances With Your Heart in Mind
May 15, 2015
“Any man can win when things go his way, it’s the man who overcomes adversity that is the true champion.” – Jock Ewing
Working with my clients’ finances over the years has given me a bit of a crash course in human behavior.
Often, I’m floored by the generosity I see displayed by many clients — even those without significant...
Ernie Neve Shares a Lifetime Plan For Your Money
May 9, 2015
Making your money last long enough is a lifetime’s work. I did some thinking, and I offer you these major money milestones everyone should observe:
20-30: Learn to invest, and start putting some money into a retirement account.
30-40: Keep planning for retirement. If possible, buy a house. Start saving for your kids’ college.
40-50: While still saving...
Philadelphia Tax Accountant on Organizing Your Finances Well
May 3, 2015
When we’re privileged enough to have conversations with clients unrelated to taxes, and more about their general financial world, we’re often asked about setting up a good system for keeping it all organized. Often, one of the major problems for many families is simply keeping track of everything! So here’s what we suggest...
• Find a good home for your...
Ernie Neve -- Your Financial Doctor?
April 27, 2015
“If someone is going down the wrong road, he doesn’t need motivation to speed him up. What he needs is education to turn him around.” – Jim Rohn
I thought I would take the time this week to give you an objective, “incentive-free” look at what your finances should look like when you hit the half-century mark. If you are close to that mark, I...
Your Philadelphia Tax Accountant Shares 9 Reasons To Have an Estate Plan
April 20, 2015
Many well meaning families think that estate plans are for someone else, not them. (Our clients hopefully know different.) They may rationalize that they are too young or don't have enough money to reap the tax benefits of a plan. But as the following list makes clear, estate planning is for everyone, regardless of age or net worth.
Here are my NINE reasons why you should consider...
E G Neve on the Millionaire Next Door
April 15, 2015
Maybe it’s true that having $1m+ isn’t as impressive as it used to be these days. But it’s still a measure that we continue to use as a marker of financial “arriving”.
What’s further interesting is that even in the midst of ongoing economic gyrations, the numbers of people who are achieving that mark is increasing.
But I’m most...
Our New Website
The Neve Group
The Neve Group, LTD is excited to announce the recent launch of our firm’s new website. We’ve been working very hard to enhance our website and give our firm a fresh look. We’ve also continued to research and identify the latest and greatest technologies to improve the services we provide and ensure we continue to meet your needs.
Take a moment to look around our new...
E G Neve Reveals 2 More Of Your Money Mistakes In Plain Sight
September 24, 2014
First of all, there’s this:
E G Neve On Why Your Greater Philadelphia Business Needs A Bias For Sales In Unexpected Places
September 22, 2014
How are things going for you in your business? Is there anything we can help you with, as we round the corner into the final quarter of 2014? Do let me know.
We’re pretty busy around here right now, but I wanted to take a moment and help you address a problem becoming more and more common these days: collections....
E G Neve Uncovers Your Money Mistakes In Plain Sight
September 17, 2014
In the course of our daily work here at The Neve Group, LTD., we not only work with tax forms and legal/financial documents a TON … but we also get a regular crash course, via those documents, on how people (our clients, mostly) have arrived to the place where they actually have something to *protect*.
In short, we get to be around a great many...
E G Neve Challenges Your Small Fee Thinking
September 15, 2014
Do you accept credit cards in your business? If not … why not?
Obviously, it’s a matter of some debate for certain merchants, but I’m here to tell you: if you are NOT, then you could be running a big risk. Whatever your opinions about the over-availability of credit (and as a general supporter of the debt-free lifestyle, I completely get...
E G Neve Discusses The Wrong Way To Start or Turn Around a Business
September 8, 2014
I have too many friends who start a business, or seek to turn around a flailing one, and use this principle as a guiding light.
May it ever be stricken from your consciousness.
But before I remind you of what I KNOW you surely know … here are a few other things you surely know, but also perhaps need a reminder for …...
Greater Philadelphia Tax Expert on Making Sure Your 2014 Taxes Are Done Right
September 3, 2014
Labor day comes at me like a rush, every year. There’s a corporate tax deadline on the 15th of September to keep me busy and focused … but the truth of the matter is that the beginning of fall means that my team and I start to get real focused now.
Winter is coming. (Which means tax season.)
We’ve been...
Greater Philadelphia Tax Expert on Making Sure Your 2014 Taxes Are Done Right
September 1, 2014
Labor day comes at me like a rush, every year. There’s a corporate tax deadline on the 15th of September to keep me busy and focused … but the truth of the matter is that the beginning of fall means that my team and I start to get real focused now.
Winter is coming. (Which means tax season.)
We’ve been...
E G Neve’s Strategy for Writing Off Almost Anything
August 27, 2014
Being a Greater Philadelphia tax professional, I get all kinds of questions throughout the year when it comes to taxes.
But whether at social gatherings, sporting events or even business networking functions, one of the most common ones I receive is: Can I write this off?
Well, allow me, today, to set the record...
Killer Momentum
August 25, 2014
So here we are, finding ourselves about to begin a beautiful Greater Philadelphia fall…
Isn’t it amazing how quickly time has flown by in 2014? Soon we’ll be halfway through this century’s second decade. And I still remember holding my breath at Y2K! Crazy.
There’s a reason for my mini-meditation, today,...
E G Neve Reveals 3 Significant Marketing Mistakes (Part 3 of 3)
August 18, 2014
An honest question for you: how’s business, as we wrap up the summer?
Is there anything I can do to help you this week? I obviously take pleasure in helping my clients and business owner friends thrive during this craziness in our culture and economy, and my weekly Notes are just one way I’m happy to help.
But I hope...
Re: A salve for all this chaos
August 13, 2014
If you’ve been paying attention to the news the last few weeks, it seems that we’ve been reeling a bit as a nation, and on the world stage. However, it looks like the Ebola mess may be a little more contained than was initially feared (though still very terrible). The mess in the Middle East is no less hairy, but the Dow is recovering a little...
E G Neve Reveals 2 More Advertising Mistakes
August 11, 2014
I’ve come to realize that WE are our own worst enemy, when it comes to running our businesses … not external factors, not market forces. It comes down to looking in the mirror, and taking responsibility for the results we’re currently experiencing.
So, if things are down right now: don’t blame anyone but yourself. This...
A salve for all this chaos
August 6, 2014
Israel and Palestine.
The Ukraine and Russia.
The mess at the border (and in Congress).
Ebola.
And in the middle of it all, we’re all facing our own private fears, struggles and frustrations.
So … may I remind you of a few things?
Neve’s Key Reminder #1: What...
E G Neve Reveals 3 Common Advertising Mistakes
August 4, 2014
With all of the chaos swirling around — Israel/Palestine, Russia/Ukraine, the border mess, EBOLA, etc. — it’s tempting to just throw your hands up and drown yourself in work … or drown yourself in the chaos, and rut there for a while.
So how are you feeling about your business this...
Greater Philadelphia Small Business Accounting Expert On Refocusing Right-Thinking For You and Your Team
July 28, 2014
Last week we talked about small business owners (perhaps like you) forgetting to “sell”.
You see, what I’ve found when working with my business owner clients in Greater Philadelphia and beyond is that when you focus on something enough, it becomes “big” and crowds out room for the truly big issues.
The...
E G Neve’s Advice to Business Owners: Don’t Forget This!
July 21, 2014
There do seem to be some signs that our country’s economy is shaking off at least SOME of the doldrums. Despite all of the foreign policy chaos we’re seeing, domestically speaking stocks are high, confidence is steady, and though there are still plenty of reasons for concern, things could be improving in the Greater Philadelphia area, as...
E G Neve’s Advice: Meet Less, Be More Productive
July 14, 2014
Are you like me? Because occasionally I find myself loathing “meetings”.
Working in business accounting, I know as well as anyone that they are absolutely necessary at times — and a business that NEVER has them probably won’t get on the same page with the frequency or alacrity that succeeding in 2014...
E G Neve’s Advice: Work Less, Be More Productive
July 7, 2014
I was inspired by all this talk of independence. I thought about my work here in the Greater Philadelphia area, and the work of our business clients — and, well, I’m here to offer you a “E G Neve” personal challenge, of sorts:
Take a day off this week.
One day more than you normally would. No...
Greater Philadelphia Accountant On: The Making of Long-Term Customers
June 30, 2014
How are you and your Greater Philadelphia area small business feeling about 2014 so far?
Now that we’re just about halfway through, it’s a nice time to take stock.
So, really, I’d be interested: How are things going for you so far? Send me a quick email here at Team E G Neve so I can get a...
E G Neve Shares Another Big Mistake: No Client Tracking
June 16, 2014
In this week’s Business Strategy note, I am continuing my little war on bad business, this time about one of the key differentiators I see among my most successful Greater Philadelphia business owner friends.
I hate to say it, but it is an almost obsessive attention to the finer points of sales — frequency, cost-per-sale,...
E G Neve Reveals Another Big Mistake: Ignoring Negative Feedback
June 9, 2014
I’ve been hitting some common notes the past couple of weeks on behalf of my Greater Philadelphia small business accounting clients:
Grumbling about the economy (and how it never helps us).
Bad advertising.
Bad measurement.
Well, let’s add another to the mix, shall we? Seems like an appropriate way, staring, as we...
Greater Philadelphia Accountant Reveals A Big Mistake: Set Advertising Goals; Don’t Measure
June 2, 2014
Goal setting? Really?
Honestly, this whole ritual of “goal-making” can be very cliche, but look — all of us Greater Philadelphia small business owners still do need little “nudges” to help us actually make changes in our lives.
I see it as my role in your life to not only provide authoritative and actionable advice for...
Greater Philadelphia Accountant Reveals A Big Mistake: “Treat All Prospects the Same”
May 27, 2014
There’s always a ton of doom and gloom out there, with unemployment figures, continual media drip of bad news, and just general bleakness about the prospects for Greater Philadelphia small businesses. Grumbling about the ACA, inflation, mounting national debts … blah, blah, blah.
Not that these aren’t serious problems, but we don’t...
E G Neve On Caring For Two Generations
May 21, 2014
Many things have changed, even just around here in the Greater Philadelphia area.
Time was, families were used to be dealing with elderly parents, young children … and everything in between, all in one house! This is less common now, and as a result, many Greater Philadelphia families are actually unprepared for how to handle it —...
Greater Philadelphia Accountant Pleads With Greater Philadelphia Businesses: Run Advertising That WORKS
May 19, 2014
When I chat with my Greater Philadelphia business owner friends, I find that many of them are adopting a “herd mentality” when it comes to marketing their Greater Philadelphia business. And I’d like to see that change for you, and for all my business owner friends.
Granted, I know my limits — I’m an accountant,...
E G Neve on Tax Planning: Early Withdrawals
May 14, 2014
Well Greater Philadelphia, our rite of spring is past.
No, I’m not talking about Cinco De Mayo … rather, the NFL Draft is over, and three precious days of watching paint dry come to an end. Ah, spring.
Yes, I know serious football fans love this stuff (as do the television networks, not coincidentally), but so much oxygen...
E G Neve On Customer Targeting
May 12, 2014
E G Neve here, with some business wisdom for you. As is often cited, more fortunes were made during the Great Depression than during any other time to that point (and well beyond, even when you adjust for inflation).
I say this to point you (and me) higher, and to lift our vision about what is possible in the Greater Philadelphia marketplace...
E G Neve On: Retrieving What Was Lost
May 5, 2014
With the markets taking a dive the past few weeks, it’s up to us mighty Greater Philadelphia small business owners to keep this economy on the track it needs to be. And that’s not even really a “patriotic” sentiment … I just don’t want to have to live through another “recovery”, you?
So, in that...
E G Neve On Reclaiming Control Over Your Taxes
April 28, 2014
Ahhh, spring in Greater Philadelphia.
When the temps are rising, and the trees don’t seem so desolate … and am I right that the angle of the sun is a bit less harsh?
Or maybe it’s just because tax season has finished and I’m getting more sleep?
Greater Philadelphia Tax Preparation Firm Explains What To Do After Your Return Is Filed
April 21, 2014
The dust is truly beginning to settle around here at Greater Philadelphia Tax Planning and Preparation Central after our very busy TY2013 tax season (ok, maybe that’s just pollen).
Regardless, here at Team E G Neve we’re beginning the process of serving you during the “off season” (there are many new things coming,...
So grateful for you …
April 14, 2014
Part of me can’t believe that I’m taking the time to write this, here on Monday morning the 14th (the day before the filing deadline for taxpayers and for we Greater Philadelphia tax professionals!).
But I also know if I don’t do it now, this tax season having been so full … well, I’ll admit that we...
Greater Philadelphia Tax Preparer On: Tax Extensions, Demystified
April 7, 2014
It’s the final full week of tax season, and our Greater Philadelphia tax preparation office is hopping!
I’m still taking the time to step away for a moment and write to you, my friend (if you have all your papers in, and are waiting for our completion — fear not! My team is hard at work, as I type...
Neve’s Tax Time Checklist (Again)
March 10, 2014
In early January, I sent a “checklist” email to our Greater Philadelphia tax preparation business list(and if you’re not receiving our weekly emails, you really should fill out the quick form here on this page to receive a copy of one of our free reports — we’ll add you to our list as well, so you’ll be the...
Turbo-Charged Audits and Mistakes — Eliminated By E G Neve
February 24, 2014
Watching the Olympics the past couple weeks from Greater Philadelphia tax preparation headquarters (well, not while we’re preparing your taxes, of course!), and on the heels of the Super Bowl, we’ve been treated to some pretty great commercials lately, haven’t we? Some of the spots for the Olympics were downright inspiring.
But, of...
Self-Protection Through Knowing How Long To Keep Tax Records, by E G Neve
February 10, 2014
Many of our Greater Philadelphia tax preparation clients have never received that dreadful notice from the IRS, initiating an audit — or, much worse, the KNOCK on the door! If you never have, you probably don’t keep much financial documentation.
If you have, you are probably terrified to part with a single receipt.
Unfortunately, the IRS...
E G Neve Suggests: Take A Test Drive Of Your Retirement Plans
February 3, 2014
Now that the Super Bowl is over, and the football season is finished, we here in Greater Philadelphia tax preparer land can now finally get back to looking forward to football season.
And, of course, the commercials! (Which this year seemed a little … “ok” — though I think I will have dreams of that Doberhuaha for a while.)
Anyway, you may have heard...
Greater Philadelphia Tax Preparation: The Power of Specialized Knowledge
January 27, 2014
Well, this week I want to tell you a story, and one that, though it is not about our Greater Philadelphia tax preparation service per se, will help take some stress off ye olde plate for you and your family.
But before I get there, a few tax items to note…
1) Officially, tax filing is set to begin this Friday, January 31st –...
Attention Greater Philadelphia Tax Payers: Identity Thieves Want YOUR Tax Return
January 20, 2014
In a moment, I’ll show you why this is so important for Greater Philadelphia tax preparation clients. Because the hits keep on coming for Target Corp, and it’s unfortunate for them because they seem to be a company that works hard at doing things well. In fact, they were on the forefront of “Point of Sale” (POS) security with some new software, but other...
E G Neve’s Tax Time Document Chase List
January 13, 2014
Just a little over two weeks from now, we will begin filing client tax returns to the IRS (electronically), and our Greater Philadelphia tax preparer offices will be jumping.
–> And by the way, though we aren’t *filing* until the 31st, we at Team Neve ARE working (right now, in fact) on client files....
Personal Note From E G Neve: A Holiday Prayer For All of Us
December 23, 2013
It’s Monday the 23rd, as I write this here at Greater Philadelphia tax preparation headquarters, and many of our clients and friends are gearing up for a week of family and merriment, with a side dish of a little stress thrown in for good measure!
I’m very aware that the holidays are a time of joy for many here in the Greater Philadelphia...
Greater Philadelphia Tax Preparer Explains Why You Need An Estate Plan NOW
December 16, 2013
I’m once again spending my morning scattershooting around news in the tax industry, while simultaneously preparing for a sure-to-be-busier tax season here in the Greater Philadelphia area (thanks for all the recent referrals — keep ‘em coming!) AND navigating the perils of another holiday season … well, it means one busy E G Neve!
Seriously,...
E G Neve’s Reasons To Give Money Away, With or Without a Tax Deduction
December 9, 2013
Right now, a little knowledge is trickling into the wider tax professional community, but it’s something we’ve known around here at Team Neve for quite some time: Properly planning and managing a Greater Philadelphia tax preparation client’s reported Adjusted Gross Income (AGI) doesn’t just affect the tax...
E G Neve’s Tax Moves for December
December 2, 2013
I make it my practice here at Greater Philadelphia Tax Preparation Central to put this weekly blogpost together on a Monday — and today, of course, happens to be “Cyber Monday”.
Remember those days when we all had dial-up modems at home and it actually made sense to do your shopping while at work? (And, of course, presumably while your boss wasn’t...
Greater Philadelphia Tax Professional Warns of Tax Changes and Expiring Tax Breaks
November 11, 2013
I’ve been very affected by what happened in the Philippines last week, even safely ensconced in our Greater Philadelphia tax preparation office. It’s shocking, painful, and the devastation wrought by “the worst storm of all time” is only barely being uncovered. One report I just read said that there could be 10,000+ dead in one city...
Greater Philadelphia Tax Preparer Speaks Out About Avoiding An Audit On Your Taxes (Part 2 of 2)
September 16, 2013
Well, file this one under “Offbeat News” (or not). Filling out a tax return in Greater Philadelphia (or elsewhere) is complicated, apparently.
And this is true even for many Greater Philadelphia accountants, at least from what we sometimes see when people bring in returns to our Team Neve offices, which were prepared elsewhere (which we happily review for...
E G Neve On: Avoiding An Audit On Your Taxes (Part 1 of 2)
September 9, 2013
Sometimes I see a story which reminds me of the very reasons why I started doing what I do, here at this Greater Philadelphia tax preparation business.
Not every Greater Philadelphia tax professional is the same — some of us got into this business simply because we were pretty darn good at math, and, well, accounting is a logical endpoint. (Though if these programs were...
Greater Philadelphia Tax Preparation Business Busts The Big Lie Told To College Grads (And Others)
September 2, 2013
Another summer is in the books here in the Greater Philadelphia area, with Labor Day now officially behind us. Around here at Team Neve, we’re starting to prepare in earnest for Tax Season 2014, watching the IRS like a hawk (a couple of big moves last week — about which I’ll have more in a moment), and preparing our practice for an influx of new Greater Philadelphia...
Ernie Neve Describes A Nation of Tax Cheats
July 29, 2013
The tax code today is 73,954 pages long. Which is about 185 times longer than it was in 1913.
I say this simply because some of my Greater Philadelphia-area friends wonder why it is that I don’t just sip margaritas by the pool all summer. No, my work on behalf of Greater Philadelphia taxpayers doesn’t end.
There’s two big reasons why we work...
Estate Planning “Lessons” from Tony Soprano and From Your Friendly Greater Philadelphia Tax Service
July 15, 2013
The world certainly doesn’t seem to slow down — both here in the Greater Philadelphia area, and beyond — does it? And now that the whole world doesn’t get to distract itself with the Trayvon Martin / George Zimmerman murder trial, there will certainly be a new thing to agitate us, at least if the media has its way with us.
They feed on anger, chaos, frustration...
Financial Conversation Starter from Your Greater Philadelphia Tax Preparation Office
April 29, 2013
I don’t know about you, but I get pretty excited about the spring around here in Greater Philadelphia. When the cold is gone, and the trees don’t seem so desolate … and am I right that the angle of the sun is a bit less harsh?
Or maybe it’s just because tax season has finished and I’m getting more sleep?
Well, I hope you and your family...
What To Do When The Taxes Are Done, Per Your Favorite Greater Philadelphia Tax Office
April 22, 2013
What a terrible week we suffered through as a nation last week. I’m still trying to process all of it, honestly, here in my Greater Philadelphia tax office.
Life does continue, however, and as such we’re starting to catch our breath around here, after a busier-than-normal tax season. Lots of our Greater Philadelphia clients are on extension (an unfortunate consequence of...
Valentine’s on a Greater Philadelphia Tax Pro Budget
February 19, 2013
We’re pretty darn good at navigating the labyrinth of our tax system around here (and we’ve been called the best Greater Philadelphia tax preparers!). But we may not be the most authoritative source on all things Valentines.
That doesn’t prevent me from chiming in on it this week though, with a little penny-pinching twist, if you will. That,...
Let’s Start a Conversation…
October 24, 2012
Ernest G. Neve III here, your tax professional.
I know that we haven’t posted much before, but starting this week I’m hoping that you and I can have a conversation.
You see, there hasn’t been an environment like the one we’re now facing in this economy and in our nation for quite a while. The fact is-I know you’ve got...
...and get what you need, when and where you need it!
