All insights by: Kruggel Lawton CPAs

If You Run A Business From Home, You Could Qualify For Home Office Deductions

During the COVID-19 pandemic, many people are working from home. If you’re self-employed and run your business from your home or perform certain functions there, you might be able to claim deductions for home office expenses against your business income. There are two methods for claiming this tax break: the actual expenses method and the Read More »

What are the tax implications of buying or selling a business?

Merger and acquisition activity in many industries slowed during 2020 due to COVID-19. But analysts expect it to improve in 2021 as the country comes out of the pandemic. If you are considering buying or selling another business, it’s important to understand the tax implications. Under current tax law, a transaction can basically be structured Read More »

It May Be Time To Tune Up Your Nonprofit’s Accounting Function

Many organizations get stuck in procedural ruts because it’s easier in the short term to continue doing things the way they’ve always been done. But it generally pays to regularly review your not-for-profit’s accounting function for inefficiencies and oversight gaps. You might plan to conduct a review once a year or perform an assessment whenever Read More »

Many Tax Amounts For Businesses Have Increased For 2021

A number of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2021. Some stayed the same due to low inflation. And the deduction for business meals has doubled for this year after a new law was enacted at the end of 2020. Here’s a rundown of those that Read More »

Drive More Savings To Your Business With The Heavy SUV Tax Break

Are you considering replacing a car that you’re using in your business? There are several tax implications to keep in mind. A cap on deductions Cars are subject to more restrictive tax depreciation rules than those that apply to other depreciable assets. Under so-called “luxury auto” rules, depreciation deductions are artificially “capped.” So is the Read More »

Nonprofits: How to Acknowledge Donor Gifts

  Holiday-inspired generosity and the desire to reduce tax liability makes the end of the year a busy time for charitable giving. According to Network for Good and other sources, approximately 30% of charitable gifts are made in December alone. For nonprofits, an important part of processing these donations is sending thank-you letters that acknowledge Read More »

Using Footnotes To Disclose Your Nonprofit’s Financial Information

Does anyone actually read footnotes? If they’re financial statement footnotes, the answer is usually “yes.” Footnotes can provide donors, governmental supporters and other stakeholders with critical information about your not-for-profit. So it’s important to work with your CPA to make sure your footnotes are accurate and thorough.   Operations and accounting policy snapshot One important Read More »

Navigating Tax Requirements After the Death of a Loved One

First and foremost, we want you to know that the staff and leadership of Kruggel Lawton offer our most sincere condolences to you and your family following the death of your loved one. Death is an emotional and troubling reality, and navigating the complicated and often overwhelming landscape of tax requirements after someone dies can Read More »

The 2021 “Social Security Wage Base” Is Increasing

  If your small business is planning for payroll next year, be aware that the “Social Security Wage Base” is increasing. The Social Security Administration recently announced that the maximum earnings subject to Social Security tax will increase from $137,700 in 2020 to $142,800 in 2021. For 2021, the FICA tax rate for both employers Read More »

Q3 CFO Survey: Outlook Among Michiana Finance Leaders Rebounds

Michiana Benchmark Business Index (BBI), is produced by the certified public accounting and consulting firm of Kruggel Lawton CPAs using data independently collected from CFOs and senior-level financial officers of major businesses and corporations in Indiana and Michigan.   The third quarter 2020 Michiana Benchmark Business Index (BBI) improved after dropping to historically low levels in Read More »

Understanding the Passive Activity Loss Rules

  Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against Read More »

What’s Next for PPP Loan Forgiveness?

  DOWNLOAD GUIDE     CPA from a Forbes “America’s Best Tax Firms” answers your top questions about PPP Loan Forgiveness.   In spring 2020, no one could have estimated the effect COVID19 would have on our economy and our communities. It quickly became apparent that Congress would have to act fast to provide some Read More »

2020 Q4 Tax Calendar: Key Deadlines For Businesses And Other Employers

  Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Read More »

Receive A Bill From DOR? Here’s How To Resolve It

This information was provided directly by The Indiana Department of Revenue as an Agency Announcement. DOR urges Hoosiers to take immediate action to avoid additional penalties and interest. The Indiana Department of Revenue (DOR) is starting to send tax bills that were delayed earlier this year due to tax filing and payment extensions related to Read More »

Private Aircraft Options for Business Owners and Entrepreneurs

  For a high-net-worth individual or a closely-held business owner or entrepreneur, the desire to fly privately rather than via commercial airline has its advantages. The ability to travel on short notice and to remote destinations that are not serviced by major airports, while at the same time mitigating security concerns and experiencing unparalleled privacy, Read More »

Dentists: Apply for The Provider Relief Fund From HHS By September 13, 2020

  The CARES Act, an economic stimulus bill passed in March in response to the impacts of COVID-19, includes $175 billion in relief funds for hospitals and healthcare providers that have been financially affected by the coronavirus outbreak. Eligible recipients include dental providers with a valid Taxpayer Identification Number (TIN), and all interested dental providers Read More »

CARES Act Made Changes To Excess Business Losses

  The Coronavirus Aid, Relief and Economic Security (CARES) Act made changes to excess business losses. This includes some changes that are retroactive and there may be opportunities for some businesses to file amended tax returns. If you hold an interest in a business, or may do so in the future, here is more information Read More »

COVID19 Backlog at the IRS

Due to a COVID19-related backlog at the IRS, some taxpayers’ checks may still be unopened. You may find that the IRS has not given you credit for payments made on time, even well before the deadline. Do not be alarmed. The IRS will post these checks on the date received rather than the date the Read More »

The Possible Tax Consequences of PPP Loans

  If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial Read More »

Q2 CFO Survey: Businesses Taking Hits But Optimism Rebounds

Michiana Benchmark Business Index (BBI), is produced by the certified public accounting and consulting firm of Kruggel Lawton CPAs using data independently collected from CFOs and senior-level financial officers of major businesses and corporations in Indiana and Michigan.   In the second quarter of 2020, the overall BBI  recovered slightly after a precipitous drop in the Read More »

Main Street Lending Program Now Open To Nonprofit

Last week, the Federal Reserve announced that not-for-profit organizations now may apply for loans under the $600 billion Main Street Lending Program. Previously open only to for-profit businesses with more than 100 employees, the program offers low-interest loans with relatively relaxed repayment terms. If your organization needs funding to keep operating during this difficult period, Read More »

Businesses: Get Ready For The New Form 1099-NEC

There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600 Read More »

New Forgiveness Guidelines for PPP Loan Recipients

On Friday, June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act into law. The bill makes the following changes to the Paycheck Protection Program (PPP): Extends the PPP loan “covered period” from 8 weeks after loan origination to the earlier of 24 weeks after loan origination or December 31, 2020 (and borrowers Read More »

FASB Defers Effective Dates of ASC 842 and ASC 606 for Certain Entities

Summary The FASB issued ASU 2020-051(“ASU”) to provide a one-year deferral of the effective dates of: ASC 842, Leases, for all private companies and certain not-for-profit entities ASC 606, Revenue from Contracts with Customers, for all privately-held entities that have not yet issued financial statements or made financial statements available. Background The FASB has received Read More »

IRS Disallows Tax Deductions for Eligible PPP Expenditures

On April 30, the IRS issued Notice 2020-32 providing guidance regarding the deductibility for federal income tax purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer receives a loan (covered loan) pursuant to the Paycheck Protection Program (PPP). The PPP was established by Section 1102 of the Coronavirus Read More »

Employers Can Defer Employment Tax Deposits Until PPP Loan is Forgiven

The IRS has issued frequently asked questions (FAQs) on the payroll tax deferral opportunity provided by the Coronavirus, Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136). Under that provision, employers of all sizes (including tax exempt/non-profit employers) can defer the deposit and payment of the employer’s share of Social Security taxes. Self-employed individuals Read More »

Survey: First Quarter Business Index in South Bend Region Declines Sharply

The first quarter 2020 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, declined sharply, falling to its lowest level since the survey began ten years ago. The overall first quarter BBI was 40.94 out of a maximum possible score of 100. Kruggel Lawton conducts this Read More »

Nonprofit Guide to the CARES Act and FFCRA

Much has been written about how the CARES Act and Families First Coronavirus Response Act (FFCRA) will help businesses. Nonprofit organizations are included in those relief efforts. We’ve shared some high level insights into how nonprofits can benefit. CARES Act Delay of payroll tax remittance Employee retention credit Paycheck Protection Program (PPP) Economic Injury Disaster Read More »

Business Loans Through the Paycheck Protection Program

The recently passed CARES Act creates a specific loan program through the Small Business Administration to help small businesses retain employees and pay critical expenses in this challenging time. Under the Paycheck Protection Program (PPP), the SBA’s current 7(a) loan guaranty program is expanded and modified to provide up to $349 billion of federally guaranteed Read More »

Federal and State Tax Updates Amid COVID-19

As of 12:00 p.m.  3/30/2020 The Internal Revenue Service (IRS) has extended the federal income tax payment AND filing deadline to July 15, 2020, as part of a growing effort to stem the financial pain from the coronavirus pandemic. All taxpayers and businesses will have this additional time to file and make payments without interest Read More »

Breaking Down the CARES Act – What You Need to Know

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides relief to taxpayers affected by the novel coronavirus (COVID-19). The CARES Act is the third round of federal government aid related to COVID-19. We have summarized the top provisions in the new legislation below, with Read More »

Employer Requirements for Federal Paid Sick Leave and FMLA

The Families First Coronavirus Response Act (FFCRA) became law on March 18, 2020. Among other things, the Act requires employers with “fewer than 500 employees” to provide two new benefits: (1) federal emergency paid sick leave and (2) federal emergency paid family and medical leave (FMLA). Here we will address some of the major requirements Read More »

Employer Calculations for Federal COVID-19 Payroll Tax Deductions

Businesses and tax-exempt organizations with fewer than 500 employees that are required to provide emergency paid sick and childcare leave through December 31, 2020, under the Families First Coronavirus Response Act (FFCRA), can claim a refundable federal tax credit to recover 100% of those payments. The IRS also said that the cost of providing such Read More »

Coronavirus-related Payroll Tax Credits for Employers

On March 20, 2020, the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. This Read More »

SBA Disaster Assistance Loans for Small Businesses Impacted by COVID-19

The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital (up to $2 million) to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Economic Injury Disaster Loans (EIDL) are available statewide in Indiana, Michigan, and Tennessee to small businesses and private, non-profit organizations to help Read More »

National Emergency Declaration Allows Employers to Offer Tax-Free Payments to Employees

Employers are scrambling to find ways to help their employees who are impacted by the novel coronavirus (COVID-19). Help is available. Now that the COVID-19 has been declared a national emergency,[1] Internal Revenue Code Section 139 can be used to allow employers to make tax-free payments or reimbursements to employees as “qualified disaster payments.” Below are Read More »

Federal Aid Package Helps Individuals Affected by COVID-19

The Families First Coronavirus Response Act (H.R. 6201) became law on March 18, 2020. The Act guarantees free testing for the novel coronavirus (COVID-19), establishes emergency paid sick leave, expands family and medical leave, enhances unemployment insurance, expands food security initiatives, and increases federal Medicaid funding. The Act includes up to 80 hours of emergency Read More »

Can Your Nonprofit Board Recognize Financial Red Flags?

A key fiduciary duty of your not-for-profit’s board of directors is to oversee and monitor the organization’s financial health. Some financial warning signs — such as the loss of a major funder — may jump out immediately. But other red flags can be more subtle. Here are some of them. Budget issues Certain budget-related issues Read More »

Protecting Your Assets From Fraud

The team at Kruggel Lawton has marked a rise in attempts to defraud participants of retirement funds through submission of fraudulent distribution requests. We advise participants and plan sponsors to be proactive and implement more stringent security measures for online accounts. “We’ve seen a significant rise over the last year,” said Aaron Hoeppner, senior staff Read More »

Numerous Tax Limits Affecting Businesses Have Increased for 2020

An array of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2020. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that are subject to Social Security tax is capped for 2020 at $137,700 (up from $132,900 Read More »

Do You Want To Go Into Business For Yourself?

Many people who launch small businesses start out as sole proprietors. Here are nine tax rules and considerations involved in operating as that entity. 1. You may qualify for the pass-through deduction. To the extent your business generates qualified business income, you are eligible to claim the 20% pass-through deduction, subject to limitations. The deduction Read More »

New Law Helps Businesses Make Their Employees’ Retirement Secure

A significant law was recently passed that adds tax breaks and makes changes to employer-provided retirement plans. If your small business has a current plan for employees or if you’re thinking about adding one, you should familiarize yourself with the new rules. The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was signed Read More »

Survey: CFOs in South Bend Region Optimistic in the New Year

The fourth quarter 2019 Michiana Benchmark Business Index (BBI), compiled by the certified public accounting and consulting firm of Kruggel Lawton CPAs, held steady from the prior quarter. The overall fourth quarter BBI was 54.71 out of a maximum possible score of 100. This was essentially unchanged from the third quarter BBI result of 54.78. Read More »

Advice for Dating Documents in 2020

We’ve all done it: you get ready to write a check in January and you accidentally date it for the previous year. For the first few weeks of every year this usually mindless task actually requires us to focus in order to complete properly. When signing legal documents this year, officials advise that you not Read More »

Special Alert: Congress Repeals Onerous “Parking Tax”

The government funding legislation passed by the House on Dec. 17 and by the Senate on Dec. 19 includes repeal of Internal Revenue Code Section 512(a)(7), commonly referred to as the “parking tax.” The legislation was signed into law by the President on Dec. 20, 2019. The provision, enacted as part of the 2017 Tax Read More »

2020 Q1 Tax Calendar: Key Deadlines For Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. January Read More »

How Nonprofits Can Take Advantage of Corporate Volunteers

According to the Society for Human Resource Management, 47% of companies offer a community volunteer program for employees. Chief Executives for Corporate Purpose has found that large companies are even more likely to sponsor volunteer activities: 61% offer paid-release time volunteer programs or a structured corporate volunteer program. If your not-for-profit suffers from a chronic Read More »