July 2020 E-Newsletter

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Getting Back To Business
On average, only 40 to 60 percent of businesses recover after a disaster, according to FEMA. That is why having a disaster recovery and business continuity plan at the ready is so important. If you don't have written plans to help you get back to business after the recent shutdown, take notes so you can draft them later.




2019 Tax Filing Deadline Extended
In order to help businesses and individuals cope with the fallout of the COVID-19 crisis, the IRS extended the 2019 federal tax filing deadline from April 15 to July 15, 2020. The extension also applies to 2019 traditional IRA and ROTH IRA contributions. Payment of 2020 first and second quarters' estimated taxes is also postponed to July 15, 2020.

It's important to note that some states(but not all-have extended filing deadlines. Check with your state to avoid late penalties.





Emergency Funds
The COVID-19 pandemic provided a heightened awareness for the need to have an emergency fund. Because cash flow is key to survival, the government rushed to boost unemployment benefits and provide loans for businesses. Now, as we recover from the COVID-19 crisis and rebuild financially, one of your top priorities should be to build or replenish your emergency fund.





July 2020 Client Profile
Nicole has been furloughed from her job at a major hotel chain. Her temporary suspension is scheduled to last through August at least. How does this affect her income and benefits?




Time To Regroup
Many of us may have avoided looking at our investment portfolios after the major economic disruption brought on by the closure of non-essential businesses. However, as you recover from shell shock, its important to review your financial situation.




Must-Have Documents
Three legal documents ― a will, powers of attorney and an advance directive ― are essential elements in an overall strategy to protect the ones you love, providing a measure of certainty when you can’t. An estate planning attorney can help you create and update these legal documents.




Help! My Stimulus Payment is Wrong or Missing!
Millions of Americans already received their economic impact payment. But what if you're still waiting or your payment was for an incorrect amount?




Small Business Owners Get Good News
Small business owners, self-employed workers and freelancers received some welcome news when Congress recently passed the Paycheck Protection Flexibility Act. This new law clarifies how businesses can qualify to have all or a portion of its Paycheck Protection Program (PPP) loan forgiven.



Services

  • Income Tax Preparation for all types of businesses and individuals
  • IRS, State and Local Audit Representation
  • Trust, Estate and Gift Compliance
  • QuickBooks setup, support and training
  • Business startup services
  • Monthly bookkeeping
  • Financial statements
  • Family Office
  • Nonprofit Administration

Additional Updated Information

April 2020 E-Newsletter

May 2020 E-Newsletter

June 2020 E-Newsletter



July 2020 Q & A

Q: I have a couple side gigs and my only bookkeeping record is my checking account and charge cards. Where do I start to make tax preparation easier?

A: With the higher standard deduction, it may or may not make sense to track expenses for the purpose of tax deductions. You can track expenses and save receipts using various software packages or smartphone apps. Your tax advisor can help you make these decisions. Remember to pay estimated taxes quarterly. It is recommended that you keep business and personal accounts separate.


Q: How can I improve my credit score?

A: Poor credit can raise your borrowing costs or eliminate your ability to borrow altogether, and it can even disqualify you from employment opportunities. To improve your score, start by understanding your problem. Do you make late payments or carry too much debt compared to your overall credit limit? Make it your mission to pay every bill on time. A recent history of on-time payments will help improve your score. If you carry too much debt, stop spending and start paying it off. Creditors want to see responsible customers. Don't add to your debt. Applying frequently for new cards or loans can also hurt your score.

SHORT BITS

PARENTS DOING TOO MUCH?

According to a new Pew Research Center study Americans believe that young adults should be financially independent by age 22, but that is not the reality. The study found that only 24% of young adults were financially independent by age 22 or younger, compared with 32% in 1980. Also 45%of adults ages 18-29 reportedly received financial help from their parents in the past 12 months.

CORONAVIRUS PHISHING ATTACKS

The CARES Act includes a provision to increase deductions for charitable giving during the crisis. If you don't itemize your taxes, you can take an above-the-line deduction of up to $300. In other words, you don't have to pay taxes on that amount. If you do itemize your taxes, you can deduct gifts up to 100% of your adjusted gross income, rather than the usual 60%.



SMALL BUSINESSES AND PPP

The National Federation of Independent Businesses reported that 70% of small business owners tried to apply for the Paycheck Protection Program as of mid-April. More than 72%of those who submitted applications did so successfully. The majority of this group (84%) already had some type of account with the bank.


INDUSTRIES THAT PROFITED DURING COVID-19

While the coronavirus pandemic has been devastating to businesses around the globe, some sectors have flourished. Meal delivery kit service Blue Apron, for example, struggled after going public a few years ago, but has since seen a surge and is actively hiring. Other unconventional items that have jumped in popularity include bidets and high fashion face masks that were originally designed for those with immunosuppressant issues.




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