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...
PPP Loan Forgiveness can be a Challenge in More Ways than One
Everyone from your hairdresser, your church pals, and your brother-in-law, to your car salesperson seems to be an expert on PPP loans. PPP discussions are unavoidable these days; even my eight year old heard about it from TikTok. She thought she was back to our...
4th Quarter 2020 Review – CRA Financial, L.L.C.
Overview What a year 2020 has been. We saw market volatility reach an historic high in March with the CBOE VIX Index registering a level of 82.69. This was the highest level ever recorded topping the 80.86 number recorded during the financial crisis in 2008. Investors...
Welcome Announcement 2021
It gives us great pleasure to announce the promotion of Clay Himstedt from Principal to Partner on 1/1/21. Clay joined our firm in 2014 and his specializes in family businesses, healthcare services, Labor Unions and Multi-Employer Benefit Plans. We are happy to...
Consider Maximizing the Resources of Your Accounting Professional to Assist in Reaching Your Financial Goals
Come this July, I will have spent fifty years in the accounting profession with Capaldi Reynolds & Pelosi. Since my retirement in September of 2018, I have been serving as an advisor to the Firm. As we approach that time of year (tax filing season) when many...
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?
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
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
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...
Internal Controls in a Remote Environment
Occupational fraud continues to challenge nonprofit organizations. According to the 2020 Report to the Nations by the Association of Certified Fraud Examiners (ACFE), the median loss to the reported nonprofit organizations was $75,000 and the average loss was...
“Salt Workaround” Proves to be a Success
The IRS confirmed what many were hoping to be true regarding the States’ attempts at a “SALT Workaround”. The acronym for state and local tax or “SALT” became popular when The Tax Cuts and Jobs Act of 2017 was signed into law on December 22, 2017. This legislation...
Year End Tax Planning Considerations Under A Biden Tax Plan
As the close of year 2020 is rapidly approaching, I’d like to mention a few tax planning thoughts that should be considered before year-end, assuming that the Senate changes hands before the start of the President Elect’s administration. Keep in mind that in order for...