Talking with TaxSpeaker (Video 118)
1. Can a C corp. that has a group health insurance plan for employees through an insurance company reimburse an employer/owner that is over 65 for his personal Medigap policy?
2. Has the Obama era $100 per day penalty (excise tax) under Code section 4980D for employers who reimburse employees for health insurance premiums been repealed? If yes, effective when?
3. If a client opts to defer employee Social Security tax withholding in 2020, is the W-2/W-3 prepared including the deferred amount or not including it? If it is not included in 2020, does it get included in 2021 when it is paid?
4. I heard that the government was considering automatic forgiveness for loans under a specific amount. Any update on this issue?
5. The client is getting an audit from the foreign government. So the client had to pay foreign taxes from 2013 to 2019. Is there a way to deduct the foreign tax paid for 2013 to 2016 since the payments are made in 2020?
6. Would anything unusual occur when a company receives a PPP loan, then before the loan repayment, the company is sold (asset sale)? The company used the full loan amount for qualified costs (all payroll).
7. I'm looking for a great, but affordable, Time and Billing program for a small practice with 11 employees. I don't want to admit how old I am, but I'm still using a very good DOS T&B program (from Creative Solutions, now Thompson Reuters). In case you don't want to cover that, my alternate question is: What do you really think of the SBA?
8. We are preparing an estate return for an attorney. One of the beneficiaries can not be located to obtain the necessary information for the K-1. The court has allowed the estate to distribute unfound beneficiary’s money to the clerk of the court. How do I prepare the K-1 for the unfound beneficiary? Based on my research, I should attach an affidavit stating all means were used to locate the beneficiary but were not successful and file the K-1 without the SSN or address. Any thoughts?
9. I have a taxpayer that generated a 2018 NOL as a result of the change to bonus depreciation on QIP property. I want to carry it forward; am I reading Rev. Proc. 2020-24 correctly (Section 4.01(1), Application) that the election to waive the 2018 carryback is made on 2020 tax return (first one filed after March 27, 2020)?
10. Can a business get both an SBA EIDL Loan and a PPP Loan?
11. My client purchased an additional lot next to his primary home at the time he purchased his loan. The lot has been an extension of his yard for over 2 years. He is now going to sell this extra lot and keep his primary home. Is this a capital gain or can it be tax exempt because it is part of his primary residence?
12. After being at your 2020 business in depth yesterday, I learned that the sale of property where you are active is not subject to the investment tax. Is the income from rental property where you are active also not subject or just the sale?
13. We are being bombarded with forgiveness applications from the banks who made the PPP loans and they are pressuring our clients to submit the application now. (I’m sure they want their money sooner rather than later) When are the applications really due? Has any more been said about forgiving the smaller ones without an application?