Alpha’s Tax Tips

Closing a Struggling Business?

Hopefully not !! Are you thinking of shuttering your struggling business? Don’t forget taxes. The IRS is aware of the many small-business closures during the coronavirus pandemic and has redesigned its “Closing a Business” page on its website to help. The agency has information and procedures for sole proprietorships, partnerships and corporations. Among the to-dos: […]

Short Term Rental Property

The passive loss rules are strict for short-term rentals of real estate, meaning average rentals of seven days or less. A couple owned beachfront property that they rented out over the years for an average rental period of seven days or less. They paid a management company to get tenants, collect rents, clean and the […]

Social Security Changes

Social Security recipients get a 1.3% increase in their benefits in 2021. The earnings test limits are heading up. Individuals who turn 66 next year will not lose any benefits if they earn $50.520 or less before they reach that age. Individuals who are 62 through 65 by the end of 2021 can make up […]

Virtual Currency Tax Update

Covid-19 has stifled the IRS’s enforcement arm. Many of the agency’s audit activities were curbed from mid-March to July 15 because of the pandemic, and the IRS is slowly stepping back into doing exams. But the IRS hasn’t lost focus of its key priorities. On that list are virtual currency transactions. According to the IRS […]

Ask the IRS to Remove an Old Tax Lien

You must ask the IRS to withdraw a tax lien once the tax liability is fully paid. The Service will withdraw the lien: Provided you have paid your tax bill The IRS has released the lien You have been tax-compliant for the past three years A withdrawal of a tax lien expunges the lien immediately […]

Do You Know That Business’s Suffer From Identity Theft Also?

Business tax identity-theft refund fraud continues to be a growing problem. This occurs when fraudsters use stolen or fabricated employer identification numbers to fill bogus corporate and payroll tax returns and other forms to claim false refunds. The Service has steps that businesses can take to safeguard their own data and those of their customers. […]

Seek PPP Loan Forgiveness

The massive economic stimulus law – the Coronavirus Aid, Relief and Economic Security (CARES) Act – provides a wide range of relief to small businesses, including Paycheck Protection Program (PPP) loans supervised by the Small Business Administration (SBA). Now is the time to apply for PPP loan forgiveness. If you qualify, you won’t owe any […]

Give IRA Funds Directly to Charity

If you are over age 70 ½ and receive annual required minimum distributions (RMDs) from your IRA (s), you may have more flexibility this year than you think. Transfer funds directly from an IRA to a charity. There are no federal income tax consequences to this “qualified charitable distribution” (QCD). A 2020 QCD may still […]

Connect with Electric Vehicles Credit

The tax law rewards environmentally conscious car owners. Buy an electric vehicle that qualifies for a special tax credit. The options continue to expand as technology improves. But you may have to move fast to get the car you want. The credit begins to phase out for a manufacturer’s vehicles when at least 200,000 qualifying […]

A Roth For Your Kid? It Works

Suppose your teenage child was fortunate enough to land a job this summer. Typically, your progeny might have an eye on the latest video game craze or a smartphone, but there may be a better way for him or her to spend the hard-earned cash. Encourage your child to make a Roth IRA contribution. Even […]