TLR Accounting & Business Services

12/30/2021

Let us help get your books in order for year-end.

12/25/2021

08/11/2021

Great information regarding Hurricane Harvey Causality Loss Safe Harbor.

Hurricane Harvey Casualty Loss Safe Harbors – I am bring this back to life one last time. This special provision expires 10/15/21 if you filed for an extension for your 2017 tax return.. If you qualify for this, and the last day to amend and claim a refund is 10/15/21.

DO NOT OVERLOOK THIS. I encourage everyone to share this with anyone who had a casualty loss.

Too many taxpayers affected by this disaster are not utilizing these Safe Harbors identified below. I have more detailed articles, but here is the down and dirty so please share or go to my website and click the “Book Now” button and schedule an appointment. Even if you have filed your tax return already, you can amend and use these Safe Harbors.

******************************************
Safe Harbors for determining casualty losses – the IRS has created “Cost Index Tables” for determining your casualty loss.

Even if you had flood insurance, you still qualify for a casualty loss by using these Safe Harbors.

These Safe Harbors are "per square foot" of damaged property.
The amounts amounts below are if you had over 1 foot of water. Again you qualify even if you had flood insurance. In Texas the amounts per square foot are:

$139 for residence less than 1,500 square feet

$117 for residence between 1,500 & 3,000 square feet

$104 for residence over 3,000 square feet

For example if you have a 2,000 sq ft house which had over 1 foot of water, the Safe Harbor casualty loss is 2,000 times $117 = $234,000. These are real numbers.

Below is a detailed article. This is your last chance to take advantage of this provision if you qualify.......

www.robertdeejrcpa.com/cashualtysafeharbors.php

Again, I encourage everyone to share this or go to my website and click the red "Book Now" button and schedule an appointment.

Robert Dee Jr., CPA. I am a dedicated CPA firmly focused on Tax Preparation and Planning which includes Individuals, Partnerships, Corporations (C and S), LLC's and IRS Tax Controversy and Representation. My philosophy of proactive tax planning rather than reactive has proven successful and given my...

01/15/2021

To my Clients,

New changes for a second PPP Loan and tax credits. Please read this entire email....

PPP loan round two. Must have a drop in gross revenue of 25% in “ANY” quarter of 2020 compared to same quarter in 2019. I will compute this number if I have your tax information. The PPP loan can be computed on the 2019 average payroll OR 2020 average payroll...

***********************************************************************
ERC (Employee Retention Credit). Previously this was NOT allowed if you obtained a PPP loan but now is allowed if

1.) Your gross receipts decreased by 25% in ANY quarter 2020 compared to same quarter in 2019. I will compute this number if I have your tax information. If you were not in business in 2019, you may still qualify but is not discussed here.

2.) You were NOT considered an essential business and YOUR business was part of a MANDATORY shut down.

NOTE – If your gross receipts did NOT reduce by 25% but you were required to shut down, then you can qualify. My SPECIFIC question is was your business considered NON essential and you were REQUIRED to shut down at ANY time in 2020……

****************************************************************
I need a reply email stating either

1.) I was considered a essential business and was NOT required to shut down my business. You can qualify based upon the 25% test above.

OR

2.) I was not considered an essential business and was required to shut down from XX date to XX date. If you were required to be shut down, You qualify. I need exact dates, NOT a guess, you were required to be shut down.

The ERC is a Tax Credit which is filed on the 4th quarter Form 941 payroll report so I MUST receive a reply to determine if you qualify for this credit.
****************************************************************

This ERC is a down and dirty explanation.

11/28/2020

The end of year is near! Let us help you get your books ready.

10/28/2020

Business Bookkeeping Year End Checklist

Are your books ready for tax preparation?

Your tax return is only as accurate as your bookkeeping records.

There are several things you can do to ensure your books are complete, accurate, reconciled, and ready for tax preparation.

Below is a basic Year End checklist to help you wrap up your bookkeeping for the year.

Each company’s bookkeeping is unique to the business so this list may include items that do not apply or may not cover specific aspects of your company’s accounting records.

☐ Confirm that your Prior Year Balance Sheet hasn’t changed since your tax return was prepared last year. It should match your tax return from the prior year.

☐ Reconcile all bank, credit card, and loan accounts. Make sure to resolve any uncleared/unreconciled transactions that are more than 3 months old.
☐ Reconcile payroll liabilities and excise tax liabilities to actual year end balances.
☐ Review Accounts Receivable Aging report – write off any uncollectible balances.
☐ Review Accounts Payable Aging report – resolve any inaccuracies.
☐ Verify the ending inventory balance reflects the actual cost value based on physical count.
☐ Review any new asset entries to make sure they should be reported as assets. Purchases for $500 or less can be recorded as expenses. (Some businesses report anything $2,500 or less as and expense.)
☐ Look for any accounts that have significant changes from the prior year or no change from the prior year – investigate to see if anything is missing or inaccurate

Profit & Loss Review: Use a Comparative Profit & Loss that shows the current year and the prior year for comparison. It helps draw attention to significant variances from year to year, which can be an indication of bookkeeping errors.

☐ Look at a Profit & Loss Detail report that shows all transactions in each account. Look for unusual entries in each account. This is not an intensive detailed review or audit, just a quick look through transactions looking for oddities or anomalies that may need correcting. Also, look for & correct expense transactions that should be recorded as assets (generally greater than $500, though some businesses use the benchmark of $2,500 or more).

☐ Verify revenue is reconciled to POS, Billing, or other revenue tracking system.
☐ Verify payroll expenses (wages & taxes) agree with the year-end payroll reports and payroll tax
returns.
☐ For corporations, verify that officer wages are reported in their own expense account.
☐ For partnerships, verify that compensation to partners for services is reported as guaranteed payments.
☐ Verify charitable contributions are reported correctly. Only those donations that have a business purpose are deductible. Other charitable contributions are not tax deductible in a business.
☐ Look for any expenses reported in the prior year that don’t show up in the current year. This can be an indication that something is missing in your current year bookkeeping.
☐ Add any owner reimbursements for items paid personally (mileage, cell phone, home office, etc.)

If you need our help or have any questions, please give us a call!