Tax Facts: the 2020 Edition

Tax Facts: the 2020 Edition

Happy 2021! Here are some key items relating to the 2020 tax year filing: Standard deduction is as follows: Single $12,400 Married filing joint $24,800 Head of household $18,650 Medical expense deduction threshold is 7.5% of adjusted gross income. SALT Deduction...
Want to Avoid Paying Back Provider Relief Funds?

Want to Avoid Paying Back Provider Relief Funds?

Truly a relief in 2020, the federal government allocated $175 billion in payments to be distributed to providers of healthcare services and support through the Provider Relief Fund (PRF).   Providers even received the Relief Fund Payments from Phase 1, the $30 Billion...
Are you eligible for the Recovery Rebate Credit?

Are you eligible for the Recovery Rebate Credit?

This year taxpayers may get an Economic Recovery Credit when they file their returns.  Will you? There have been two rounds of stimulus checks sent to taxpayers.  Those were based on tax returns filed for either 2018 or 2019, the last return filed by the taxpayer...
From New Jersey, Good News and No News

From New Jersey, Good News and No News

The IRS analyzed the legislation authorizing Payroll Protection Program loan forgiveness and, while it found that the forgiven debt was not income, it also found that the expenses paid with the loan funds were also not deductible.  It took legislation at the end of...
The Installment Sale: Definition and Benefits

The Installment Sale: Definition and Benefits

An installment sale can be a prudent tax strategy for someone who is selling property or an asset.  In an installment sale, the seller receives at least one payment after the tax year in which the sale happened. Rather than receiving the total contract price for the...