Batley CPA Tax & Business Alert August 2021

Posted on Aug 16, 2021 by

During the pandemic, many families have hired household workers. For any household worker who isn’t an independent contractor, “nanny tax” obligations may apply. This article explores the details of withholding, reporting and paying a household worker. A sidebar looks at the federal unemployment tax.

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Batley CPA Tax & Business Alert July 2021

Posted on Jul 15, 2021 by

As investing in Bitcoin, Dogecoin and other cryptocurrencies becomes more popular, investors need to understand the potential tax ramifications. Unlike traditional currency, the IRS views cryptocurrency as property. This article explores the impact on capital gains and losses as well as defines key terms such as “hard forks” and “air drops.”

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Batley CPA Tax & Business Alert June 2021

Posted on Jun 14, 2021 by

Many individual taxpayers fondly recall the stimulus payments issued this spring under the American Rescue Plan Act. However, the law contains plenty of other provisions also worth remembering. This article reviews four highlights. A sidebar looks at the income exclusion for unemployment benefits.

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Batley CPA Tax & Business Alert May 2021

Posted on May 12, 2021 by

Trusts can help affluent individuals and families manage, protect and grow their wealth. But there are a wide variety to choose from, so it’s important to understand the basic concepts behind trusts before choosing one. This article defines trusts and provides an example of how one popular trust type works. A sidebar looks at another example: intentionally defective grantor trusts.

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Batley CPA Tax & Business Alert April 2021

Posted on Apr 16, 2021 by

Future retirees have long grappled with whether to opt for a traditional or Roth IRA. Those who have a traditional IRA and have seen a decline in the value of their investments may want to consider a conversion to a Roth. This article reviews how these accounts work and the strategy in question.

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Batley CPA Tax & Business Alert March 2021

Posted on Mar 11, 2021 by

About a year ago, the Paycheck Protection Program (PPP) was launched in response to the COVID-19 crisis. Business owners who took out such a loan are likely curious about the tax consequences, particularly for forgiven loans. This article provides pertinent information. A sidebar announces the launch of “second-draw” PPP loans.

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Batley CPA Tax & Business Alert February 2021

Posted on Feb 16, 2021 by

The federal child tax credit is available to help many taxpayers with children under the age of 17, and there’s a dependent credit for those who are eligible with older children. This article explores the details. A sidebar explains that a qualifying child must have an SSN for parents to claim the tax credit.

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Wisconsin Disallows PPP Loan Related Deductions

Posted on Jan 18, 2021 by

The Act provides that if a taxpayer’s earned income for 2020 is less than the earned income for 2019, the taxpayer may elect to use their 2019 earned income to compute the 2020 federal earned income tax credit (see sec. 211 of Division EE of Public Law 116-260). Taxpayers must use their 2020 income to compute the Wisconsin earned income tax credit. Therefore, if a taxpayer elects to use their 2019 earned income to compute their 2020 federal earned income tax credit, they must recompute the federal earned income tax credit using their 2020 earned income amount for Wisconsin purposes.

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