Talking with TaxSpeaker: Video 98
1. I am receiving many phone calls from my clients wondering where their Stimulus check is. These clients always owe when we file their 1040. When we check on the IRS website with Get My Payment it almost always comes up with the dreaded Payment Status Not Available....cannot determine your eligibility for a payment at this time. I know they are eligible but don't know what to tell them. I read somewhere that the IRS cannot use the bank information included with the returns for Electronic Funds Withdrawals but we are never given the option to enter a bank account. Any suggestions?
2. I have a client who inadvertently contributed to his simple IRA for several years, while not eligible (dairy farm with much capital gain, no earned income). Began with 2016, return was filed & accepted 03/31/2017. Is this now closed to the statute or is it still open and he will have to unwind that year, as well.
3. I have a company that is 25% owned by an ESOP - does the dividends paid to the ESOP qualify as retirement contributions for the PPP Loan forgiveness
4. Does common area maintenance (CAM) charges with the rent payment qualify as rent for the PPP Loan forgiveness.
5. We are wondering about the accounting treatment of clients who receive the PPP loan. As the Loan is funded, we would book it as a current liability, but what to do when it gets forgiven? And are the expenses that the PPP funds are used for deductible?
6. If you have a college student that was claimed as a dependent for 2019, graduated in December 2019, and is now working fulltime in 2020 and no longer a dependent, will they be eligible for a $ 1,200 stimulus payment when they file their 2020 return?
7. I have a client that passed away in 2019. Personal return filed for income through date of death. Daughter, who is executor, received a $1,200 stimulus check. Is this correct? Does she deposit the check in the Estate account or return it to the IRS?
8. Clarification on the PPP Loan, for the part used for Mortgage Interest, Rent, Utilities 1) do they have to use 25% for that? 2)the amount that they do use as long as that amount doesn't go over 25% then 100% of that is forgiven too??
9. Has Bob applied for the PPP loans for his businesses? What are the spending requirements besides 75% payroll and 25% utilities, rent, mortgages? Can you prepay utilities and accrue payroll and benefits
10. Can you clarify for our accounting firm what payroll expenses are forgivable on PPP loans?
11. If a taxpayer died during 2020 (Jan 31, 2020) and their estate receives the stimulus check, will they be required to pay this back? My assumption is no, since they were indeed alive during 2020, however this specific estate will not be required to file a 2020 income tax return (so how would they find out they needed to pay it back?) But what if they DID need to file a return? As the date of death was before this disaster took place – would they need to repay the stimulus?
12. We are all in uncharted territory here but here’s the scenario and the question. Family of 4, TP is Self Employed, SP is bookkeeper and office manager not collecting a paycheck. TP learns that he owes back child support. Hasn’t had a refund because they under pay Q4 Estimate. So there has never been a need to request Injured Spouse Relief, until stimulus checks came out. Client was told, not sure by whom that they can file and 8379 to get the portion of the stimulus check that belongs to wife and kids. Is this something that can be filed for the credit prepayment or do ween to wait until 2021 to file against the 2020 tax return? We’ve always mailed these in separately, if we didn’t submit with the tax return. Do you have any idea when someone at the IRS will be at the office to enter these in to get it processed?
13. Have heard alot of info on PPP loans getting funded fir large companies not so much for smaller Have heard nothing regarding EIDL loans and grants Please share what you have heard Thanks
14. Are we still restricted from utilizing 15-year if the lease is between related parties? S corp is doing buildout on real estate leased to the S-Corp by it's 100% shareholder, shareholder and spouse own the real estate.
15. Are wages that are paid to a nanny, on which FICA taxes are withheld and paid, deductible to the parents