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Blogging Beyond the Numbers

Posted by: Elizabeth Heins-VanderWeide 2 months ago
The employee retention credit (ERC) has been getting a lot of press – and generating a lot of questions. Here is a summary. Background of ERC Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the ERC was included as a refundable tax credit against payroll taxes. This credit is equal to 50% of the qualified wages an eligible employer paid to employees after March 12, 2020, and be...
Posted by: Bruce Mayer 3 months ago
The rules for accounting for leases in a set of financial statements in accordance with GAAP (Generally Accepted Accounting Principles) will change significantly starting in 2022.  The logic for making the change is that balance sheets are currently very different for businesses that own a building compared to businesses that rent a building.  To enhance comparability between businesses the Finan...
Posted by: Mike Scholz 4 months ago
The Internal Revenue Service has released the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable and medical purposes. [table id=12 /] The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the...
Form 1099
Posted by: Bruce Mayer 4 months ago
The IRS requires reporting of certain 2020 payments to the recipient of the payment and to the IRS on a Form 1099. This needs to be completed, sent to the recipient, to the IRS, and most likely to your home state in January of 2021. The most common requirement is that payments of $600 or more for services must be reported on a 1099-NEC.  This is a new form for 2020 and replaces reporting services on the F...
Posted by: Mike Scholz 10 months ago
Whether you are a new or a well-established business, maintaining good business records is essential to supporting your business income and tax deductions. Good recordkeeping means you also claim the full amount of tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported on your tax returns if you’re ever audited by the IRS or state tax agencies. It...
Posted by: Mitch Feller 1 year ago
New Accounting Guidance for Revenue Recognition (ASC 606) On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU and all subsequently issued clarifying ASUs supersedes the revenue recognition requirements and most industry-specific guidance in U.S. generally accepted accounting princ...
Posted by: Bruce Mayer 1 year ago
Many of you have already reached out to us with questions/concerns regarding the impact of COVID-19 on your co-ops and what to do about it.  Hopefully, the information below will provide answers to some of the questions that you may have and ideas to help weather this crisis. Recent Tax Act Last week the federal government passed the Families First Coronavirus Response Act (H.R. 6201) to help Am...
Posted by: Kyle Schaaf 1 year ago
The Solar Investment Tax Credit (ITC) was established as part of the Energy Policy Act of 2005 with the goal of increasing the US renewable energy market. Many cooperatives are interested in using renewable energy.  There are some important things to know about how a co-op corporation can use solar credits that may change how you structure the installation of a solar array.  Contractors and other...
Posted by: Bruce Mayer 1 year ago
This article addresses a suggestion for reporting your patronage dividends income for the 2019 tax year. Please keep in mind the caveat that this is not individual advice and you need to explore all of the nuances of the tax law and your particular tax situation. Your tax software or tax preparer can help with that. Below the discussion for 2019 is a review of self-employment tax and patronage dividends as...
Posted by: Bruce Mayer 2 years ago
The new tax law was amended in March 2018 to change the patronage dividends rules but did allow them to be eligible for the 20% pass through business deduction.  Co-ops where the recipients of patronage dividends are businesses, or are individuals not paying tax due to the personal use exemption, are not affected by this change.  I will explore what some of the tax advantages are for worker co-ops now tha...