Should You Charge Late Fees? QuickBooks Can Help

Do you have a lot of aging receivables? Assessing finance charges can speed up customer payments. Have your customers been submitting payments later than usual these last several months? It wouldn’t be surprising. Many businesses are struggling to pay bills these days. Still, you need to get paid – and on time. Tardy receivables have…

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IRS Offers New Identity Protection for Taxpayers

Article Highlights: IP PIN Identity Verification Opt-in Program Application Process : In the past, the IRS has assigned verification numbers to victims of identity theft to file their tax returns, if requested by the victimized individual. These numbers are referred to as identity protection (IP) PINs. The IP PIN is a six-digit code known only…

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Charitable Contributions Deduction Liberalized for 2021

As a means to stimulate charitable contributions during the COVID crisis, Congress made two notable changes for 2020—one allowing taxpayers that don’t itemize their deductions an above-the-line deduction for cash contributions of up to $300 and another for those itemizing their deductions to increase the maximum deduction for cash contributions to 100% of their adjusted…

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IRS Lowers Standard Mileage Rate for 2021 to 56 Cents per Mile

Effective Jan. 1, 2021, the optional standard mileage rate used in deducting the costs of operating an automobile for business will be 56 cents per mile, down 1.5 cents from 2020, the IRS announced Dec. 22 in Notice 2021-02. Businesses often use this amount—also called the safe harbor rate—to pay tax-free reimbursements to employees who use…

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Increased Business Meal Deductions for 2021 and 2022

Article Highlights: Business Meals Under TCJA 100% Deduction for 2021 and 2022 Qualifications If you recall, the Tax Cuts and Jobs Act (TCJA), effective beginning in 2018, eliminated the business-related deduction for entertainment, amusement or recreation expenses. However, it did retain a deduction for business meals when the expense is ordinary and necessary for carrying…

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What Are the Tax Advantages of Home Ownership?

Article Highlights: Historically Low Interest Rates Purchase Costs Points Mortgage Payments Refinancing Property Taxes Inflation Gain Exclusion Renting Versus Owning Worksheet to Analyze Costs Housing is a big expense for everyone. The choice generally involves either renting or purchasing – and financing that purchase with a home loan. As of November 2020, the nationwide average…

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2021 Standard Mileage Rates Announced

Highlights: Standard Mileage Rates for 2021 Business, Charitable, Medical and Moving Rates Important Considerations for 2021 Switching between the Actual Expense and Standard Mileage Rate Methods Employer Reimbursements Employee Deductions Suspended Special Allowances for SUVs The Internal Revenue Service (IRS), each year, computes standard mileage rates for the use of a vehicle for business, medical and…

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