Carolyn Miller, Equine and K9 CPA BLOG SPOT

IRS Increases Standard Mileage Rate for Final 6 Months of 2022

2022-06-16T11:16:00.002-05:00

The Internal Revenue Service announced on 06/09/22 an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes.

For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. These new rates become effective July 1, 2022.

Mileage Rate Changes
Purpose	Rates 1/1 through 6/30/2022	Rates 7/1 through 12/31/2022
Business	58.5	62.5
Medical/Moving	18	22
Charitable	14	14

New Round of PPP Loans

2021-01-17T13:42:00.001-06:00

For those who have suffered financial losses due to Covid-19 in 2020, the following might be of interest to you. SBA is offering a new round of PPP2 Loans for those who received a PPP loan in 2020 and reopening PPP loans for those who haven't received an initial loan. The SBA is currently taking applications via community financial institutions and is expected to open up the application process to other financial institutions this week.

Do you Qualify for a PPP2 Loan?

To qualify for a Second Draw PPP Loan, you have to meet five requirements:

You're a business, independent contractor, eligible self-employed individual, sole proprietor, nonprofit organization, eligible for a First Draw PPP Loan, veteran’s organization, Tribal business concern, housing cooperative, small agricultural cooperative, eligible 501(c)(6) organization or eligible nonprofit news organization that:

Has 300 or fewer employees, unless you're a business that satisfies the North American Industry Classification System (“NAICS”) code beginning with 72 or an eligible news organization with more than one physical location.

Experienced a revenue reduction of 25% or greater in 2020 relative to 2019 (more on this below).

Received a First Draw PPP Loan

Have used, or will use, the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower"

Do you Qualify for a PPP first draw loan?

These loans are available to borrowers who were in business on February 15, 2020 and were one of the following:

Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
Sole proprietors, independent contractors, and eligible self-employed individuals.
Not-for-profits, including churches.
Accommodation and food services operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 500 employees per physical location.
Sec. 501(c)(6) business leagues,
that have 300 or fewer employees and do not receive more than 15% of receipts from lobbying. Sports leagues are not eligible.
News organizations that are majority-owned or controlled by an NAICS code 511110 or 5151 business or not-for-profit public broadcasting entities with a trade or business under NAICS code 511110 or 5151. The size limit for this category is no more than 500 employees per location.

Maximum loan amount:

In general PPP and PPP2 borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs (subject to wage cap of $100,000 per employee) in 2019 or 2020, or for the 12 month period prior to your application. PPP borrowers with NAICS codes starting with 72 (such as hotels and restaurants) can receive up to 3.5 times their average monthly payroll costs on second-draw loans.

Eligible Costs for Forgiveness:

PPP and PPP2 loans can be forgiven if the funds are used on eligible costs. Eligible costs include payroll, rent, mortgage interest and utilities. The following costs are now also eligible:

Expenditures related to complying with Covid-19 Federal health and safety guidelines;
Certain property damage costs related to vandalism or looting due to Covid-19 public disturbances;
Expenditures to suppliers that are essential at the time of purchase to the recipients current operations;
Expenditures related to business software or cloud computing service that facilitates business operations.

For full loan forgiveness, payroll costs must be at least 60% of loan proceeds for the covered period.

Application Process

I recommend that you contact your financial institution as soon as possible about applying for your PPP or PPP2 loan. The round 2 loans require much of the same documentation as was required for the initial PPP loans and therefore you may not have to provide it all over again.

PPP Loan Forgiveness

2021-01-04T21:24:00.004-06:00

How to Get Your PPP Loan Forgiven

Are you a PPP loan recipient? If so, it's time to consider applying for PPP loan forgiveness. PPP loan forgiveness is not automatic, you must apply for it, and you must apply within 10 months from the last day of the covered period. What is the covered period, you ask? Let's cover that next.

Establishing your covered period:

For loans applied for after June 5th, the loan's covered period is the 24 weeks starting with the date of the loan disbursement. (Include your disbursement date when figuring the 24 weeks.) Those who applied before June 5th have the choice of using the 8 week period from the loan disbursement date or the 24 week period as their covered period.

If you are eligible to choose an 8 week covered period and spent the full PPP proceeds on qualified expenses in that covered period, I'd recommend choosing the 8 weeks as your covered period rather than the 24-week option, it'll minimize the documents you have to submit. However, if you choose the 8 week covered period your loan forgiveness submission will be due earlier than if using the 24 week covered period.

When to apply for loan forgiveness:

If you are using the 24 weeks as your covered period you might be inclined to wait to file for forgiveness since you will have well into 2021 to apply. I caution you not to wait too long: Throughout this PPP loan process there have been many rule changes, if you qualify for full forgiveness why not get it out of the way sooner rather than later? You don't want to be caught cramming in an application at the last moment or having to deal with the application when your accountant is busy preparing tax returns and has no time to help you with it. Some banks are processing the loan forgiveness applications in batches, notifying customers when to file for their forgiveness. Many banks, just this week have suspended processing forgiveness applications as the new legislation unfolds promising simpler procedures for loans up to $150,000.

Be aware that the rules for forgiveness are still changing. Originally any EIDL grant received (not the loan, but the non-repayable grant portion) would be deducted off of the forgiveable PPP amount. This past Sunday president Trump signed into legislation new law that states the EIDL advance grant is not to be deducted from the forgivable PPP loan amount.

How to apply for loan forgiveness:

After reading the news you might think applying for loan forgiveness is just a matter of filling out a form 3508, 3508ez or 3508s. Be forewarned, it's not that simple. Even though the new legislation outlines a simplified one page forgiveness process for the PPP loans of $150,000 or less, you'll probably find that your bank may request more supporting documentation than the promised one-page form.

For those applying for loan forgiveness now, your bank will ask you for documentation to support the expenses being claimed for the loan forgiveness so be prepared to have all of the following ready to upload for the covered period:

Remember to receive full PPP forgiveness that at least 60% of the PPP proceeds must be spent on payroll expenses, with the remaining balance on other eligible expenses. You must have maintained the same number of full-time employees or their equivalent for the covered period with compensation at the same level as the pre-covid-19 period.Summary of wages paid (a 3rd party report is preferable if available;

Substantiating payroll expenses:

Copy of forms 941 and state payroll filings;
Copies of cleared payroll checks and EFTPS payroll tax payments;
Copies of bank statements
Health insurance invoices, and cancelled checks showing their payment;
Retirement plan contributions (cancelled checks and payment receipts).

Substantiating non-payroll expenses:

Mortgage interest: Lenders statements/cancelled checks/payment receipts;
Rent or lease payments: Copy of lease, cancelled checks and/or receipts
Utility payments: Copy of invoices, canceled checks and/or receipts.

Your bank will probably generate a prefilled form 3508S or 3508EZ for you to sign, so don't worry about downloading and completing your own form.

Self-employed Schedule C PPP recipients without employees are probably at this point wondering what you are supposed to submit, and how much you can claim in wages for yourself? You can claim the entirety of the PPP loan proceeds as owner compensation not to exceed $15385 for an 8 week covered period, or $20833 for a 24 week covered period. If you don't have employees you will just submit a copy of your 2019 Schedule C to substantiate the amount of forgiveness.

Please be sure to contact your accountant for the latest updates on the PPP program and to be sure you get the PPP forgiveness that you are entitled to. Your CPA can also assist you in applying for a second PPP loan if eligible.

This post will be updated as terms of the new legislation unfold and when the new forgiveness form is released.

Key Takeaways:

1. You must apply for PPP loan forgiveness, it's not automatic

2. A new simplified form for loans less than $150,000 is due to be released at the beginning of Jan 2021

3. There is a second round of PPP loans being released to those in need, projected to roll out the 2nd week of January 2021

2020-12-29T17:32:00.000-06:00

2021 IRS Standard Mileage Rates

The Internal Revenue Service has issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2021, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

56 cents per mile driven for business use, down 1.5 cents from the rate for 2020,
16 cents per mile driven for medical, or moving purposes for qualified active duty members of the Armed Forces, down 1 cent from the rate for 2020, and
14 cents per mile driven in service of charitable organizations, the rate is set by statute and remains unchanged from 2020.

Don't forget to take note of your odometer on December 31 or January 01. Taking a photo is a great way to accomplish this with a date stamp!

Coronavirus Aid, Relief and Economic Security Act (CARES Act), what it means to you and your business.

2020-03-28T16:11:00.005-05:00

CARES ACT

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on March 27th, 2020. It provides much needed relief to individuals and small businesses affected by the COVID-19 outbreak.

Many businesses will be eligible for loans that will be forgivable. I'm available to assist business owners with deciding which loan's to apply for and assist in filing applications.

SMALL BUSINESS RELIEF

The act provides relief to small businesses via forgivable small business loans, delays of estimated payment and payroll tax payments, student loan payment exclusions, employee retention credits and loss modifications. This in addition to the extension of 2019 income tax filing and payment deadlines to July 15, 2020 already passed earlier this week.

Highlights of these provisions include but are not limited to:

Small Business Loans: SBA is providing working capital loans with a maximum interest rate of 4.0% to small businesses affectected by the coronavirus. These loans can be forgiven. The amount to be forgiven is equal to the sum total of the following costs, paid during the 8 week period beginning on the date of the covered loan origination (not to exceed the original principal amount)

payroll costs
interest on mortgage obligations
rent
utility payments

Refundable Payroll Tax Credit: Employers are provided a refundable payroll tax credit of 50% of wages paid to employees during the COVID-19 crisis. This credit is available to employers whose operations were fully or partially susbpended due to a COVID-19 related shutdown order, or whose gross receipts declined by more than 50% when compared to the same quarter in the prior year.

Delay of Payment of Employer Payroll Taxes: The employer share of social security tax payments otherwise due, can be deferred over 2 years.

Net Operating Losses (NOL's) : Losses from 2018, 2019 & 2020 can be carried back for 5 years, in addition taxpayers will temporarily be able to offset 100% of taxable income with NOL's.

INDIVIDUAL RELIEF

Individuals will find relief via 2020 recovery rebates, penalty-free retirement distributions, loans from qualified plans, temporary waiver of required minimum distributions, partial above the line charitable contribution deduction and temporary suspension of contribution limitations as well as expansion of unemployment benefits and paid leave for rehired employees. This is in addition to the extension of individual income tax filing and payment deadlines to July 15, 2020 passed earlier this week.

Highlights of the individual provisions include but are not limited to:

2020 Recovery Rebates for Individuals: A rebate of $1200 per individual, ($2400 for married couples filing jointly) plus $500 per qualifying child less than age 17. Payments to be reduced by 5% of 2020 adjusted gross income in excess of $75,000 ($150,000 for joint filers). Taxpayers who qualify as a dependent of another taxpayer are ineligible for this credit.

Penalty-free Retirement Distributions: Taxpayers affected by the COVID-19 outbreak, can make penalty free withdrawals of up to $100,000 from their retirement accounts. These withdrawals will still be taxable but taxpayers may include the distribution ratably over a three-year period.

Loans from Qualified Plans: For taxpayers affected by the COVID-19 outbreak, the maximum qualified plan loan amount has been doubled to $100,000. The due date for repayment of the loan is delayed one year.

RMDS required to be made in 2020 are waived.

A $300 cash charitable deduction will be available to taxpayers who do not itemize.

the 50% limitation is suspended for cash charitable contributions made in 2020.

Expansion of Unemployment Benefits: Unemployment benefits under this bill are temporarily expanded to self-employed, and independent contractors. Provisions include a $600 per week payment increase through the end of July 2020 as well as extension of benefit period by 13 weeks.

2020-01-02T15:46:00.001-06:00

Tip for the new year: Have you noted your 2019 mileage yet?

Each new year I take a picture of my car's odometer. This gives me a record of my year starting mileage with a date stamp.

Jan 01, 20 odometer reading

I also use an app on my phone to log my mileage. It uses location and bluetooth technology to track all of my drives and sends me a link to all of my drives which I then classify as business or personal.

2020-01-02T12:11:00.002-06:00

Beginning on January 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,

17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and

14 cents per mile driven in service of charitable organizations.

The business mileage rate decreased one half of a cent for business travel driven and three cents for medical and certain moving expense from the rates for 2019. The charitable rate is set by statute and remains unchanged.

2017-12-27T19:50:00.002-06:00

The IRS has released the 2018 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. The following chart reflects the new 2018 standard mileage rates compared to the 2017 and 2016 tax year standard mileage rates.

	2018	2017	2016
Business rate per mile	54.5¢	53.5¢	54.0¢
Medical and moving rate per mile	18.0¢	17.0¢	19.0¢
Charitable rate per mile	14.0¢	14.0¢	14.0¢
Depreciation rate per mile	25.0¢	25.0¢	24.0¢

2017 Standard Mileage Rates

2017-01-04T18:55:00.001-06:00

The IRS has released the 2017 standard mileage rates for taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. The following chart reflects the new 2017 standard mileage rates compared to the 2016 and 2015 tax year standard mileage rates.

	2017	2016	2015
Business rate per mile	53.5¢	54.0¢	57.5¢
Medical and moving rate per mile	17.0¢	19.0¢	23.0¢
Charitable rate per mile	14.0¢	14.0¢	14.0¢
Depreciation rate per mile	25.0¢	24.0¢	24.0¢

2016 Standard Mileage Rates

2016-01-01T12:26:00.003-06:00

The IRS recently announced mileage rates to be used for travel in 2016. The Business mileage rate decreases by 3.5 cents while Medical and Moving mileage rates are lowered by four cents. Charitable mileage rates are unchanged.

2016 Standard Mileage Rates
Mileage	Rate/Mile

Business Travel	54.0¢
Medical/Moving	19.0¢
Charitable Work	14.0¢

2015 Standard Mileage Rates

2015-02-09T13:58:00.001-06:00

There are new standard mileage rates for 2015. They are as follows:

Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

57.5 cents per mile for business miles driven, up from 56 cents in 2014
23 cents per mile driven for medical or moving purposes, down half a cent from 2014
14 cents per mile driven in service of charitable organizations

Time to complete forms 1099-misc

2015-01-23T13:49:00.000-06:00

This is a reminder to anyone who files a business return/schedule or rental schedule on their tax return that forms 1099-misc are due 02/02/15.

Who should you issue a 1099 to?

From the IRS website:

"File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:
At least $10 in royalties (see the instructions for box 2) orbroker payments in lieu of dividends or tax-exempt interest(see the instructions for box 8);
At least $600 in:
1. rents (box 1);
2. services performed by someone who is not your
employee (including parts and materials), box 7;
3. prizes and awards (see instructions for boxes 3 and 7;
4. other income payments (box 3);
5. medical and health care payments (box 6);
6. crop insurance proceeds (box 10);
7. cash payments for fish (or other aquatic life) you
purchase from anyone engaged in the trade or business of
catching fish (box 7);
8. generally, the cash paid from a notional principal
contract to an individual, partnership, or estate (box 7);
9. Payments to an attorney. See Payments to attorneys,
later; or
10. Any fishing boat proceeds (box 5).
In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (box 9).

You must also file Form 1099-MISC for each person from whom you have withheld any federal income tax (report inbox 4) under the backup"

Have questions? Please feel free to email or call. I can assist you in preparing these forms.

Congress Passes Extenders Package

2014-12-18T15:53:00.001-06:00

Nothing like waiting until the last minute, but Congress passed the Extenders Package of Tax Provisions this past week...but again for only one year-and a year that ends in just a few days. Nevertheless, these provisions apply retroactively to 2014.

A Quick Synopsis of what the extenders package contained:

Individual Extenders:

Expiring provisions that have been renewed for 2014 include:

Election to claim the State and Local sales tax deduction in lieu of State Income taxes;
Higher Education Deduction;
Teachers Classroom Expense Deduction;
Mortgage Debt Exclusion;
Mortgage Insurance Premium Deduction;
Charitable Distributions from IRA's for individuals over 70 1/2

Business Extenders:

There are numerous business extenders, the following is a list of some of the most used provisions:

50-percent bonus depreciation on new assets;
Section 179 expensing-dollar limits $500,000;
Research Tax credit;
Work Opportunity Tax Credit.

Remember to check your bank statements and credit card statements...

2014-12-09T11:00:00.000-06:00

Unfortunately accompanying the growth of the electronic shopping era and electronic banking, is growth of fraud. And with many of us receiving online statements for our credit cards and bank statements it's easy not to review the statement each month. But be cautioned...check them. I did this morning and found $2250.00 on my credit card statement in fraudulent charges-apparently unbeknownst to me I went on a computer buying spree!

I was surprised that when I reported the charges to the credit card company they didn't automatically cancel my credit card and re-issue a new number, I had to request it. So be sure if fraud happens to you cancel that account and set-up a new one-you know the thieves have your information, why leave a door open for them?

And when you get that email for your monthly credit card or bank statement-take the minute or two it takes to open and save it-it might save you from a nasty surprise later on!

1099-misc slips

2014-01-17T13:16:00.005-06:00

It's time to prepare your 1099 slips for the year 2013.

When are they due: You should have them mailed or delivered to the receipient by January 31.

Who do I issue them to?

Per the IRS:

File Form 1099-MISC for each person to whom you have paid in the course of business, at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest; at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate; any fishing boat proceeds, or gross proceeds of $600, or more paid to an attorney during the year.

Exceptions:Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following.

Payments to a corporation except for payments for medical and health care payments (reported in box 6), purchases of fish for cash (box 7), attorneys fees (box 7), gross proceeds paid to an attorney (box 14), substitute payments in lieu of dividents or tax-exempt interest (box 8), payments to a federal executive agency for services (box 7)
Payments for merchandise, telegrams, telephone, freight, storage and similar items
Payments of rent to real estate agents. But the real estate agent must use Form 1099-MISC to report the rent paid over to the property owner.
Wages paid to employees (report on Form W-2, Wage and Tax Statement).
Military differential wage payments made to employees while they are on active duty in the Armed Forces or other uniformed services (report on Form W-2).
Business travel allowances paid to employees (may bereportable on Form W-2).
Cost of current life insurance protection (report on Form W-2 or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.).
Payments to a tax-exempt organization including tax-exempt trusts (IRAs, HSAs, Archer MSAs, and Coverdell ESAs), the United States, a state, the District of Columbia, a U.S. possession, or a foreign government.
Payments made to or for homeowners from the HFA Hardest Hit Fund or the Emergency Homeowners' Loan Program or similar state program (report on Form 1098-MA).

A couple of notes: LLC's are NOT by default corporations. LLC's are actually by default a partnership, and partnership's should be issued 1099's. LLC's can elect to be treated as corporations, so if you are not sure, request your vendor to complete a form W-9.

Veterinarian services are considered medical and health care payments so you should issue 1099's to all of your veterinarians who have received at least $600 for services. See memorandum issued by IRS in October 2013 clarifying this point.

2014-01-03T14:37:00.003-06:00

Happy new year!

Did you know that the new year brings with it expiration of several tax deductions? And a new Health Insurance Penalty?

Some expiring tax provisions (unless extended-don't count on it !)

$250.00 Teacher deduction for qualified classroom expenses
Itemized deduction: Deduction for state/local income general sales tax
Itemized deduction: Home mortgage insurance premium deduction
Tuition and fees deduction
50% additional first year depreciation deduction

Health Insurance Penalty:

In 2014 those that don't have health insurance could be facing a tax penalty. Read up on the details here:

Free Software to Non-Profits

2013-01-25T19:30:00.002-06:00

Equine Max has graciously stepped up to the plate once again and is donating EquineMax software to any non-profit organization that can use it. Here is a link to their website for more information: Equine-Max Non-Profit Edition.

Last year EquineMax donated software to 81 horse rescues, animal shelters and rehabilitation centers throughout the world.

Simplified Option for Claiming Home Office Deduction

2013-01-22T19:26:00.003-06:00

From my weekly NATP tax letter:

"The IRS has announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes. The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, is available starting with tax year 2013. Though homeowners using the new option cannot depreciate the portion of their home used in a trade or business, they can claim allowable mortgage interest, real estate taxes and casualty losses on the home as itemized deductions on Schedule A. These deductions need not be allocated between personal and business use, as is required under the regular method. Business expenses unrelated to the home, such as advertising, supplies and wages paid to employees are still fully deductible. Further details on the new option can be found in Revenue Procedure 2013-13.

2013 Standard Mileage Rates

2013-01-07T13:55:00.002-06:00

The Internal Revenue Service has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

56.5 cents per mile for business miles driven.
24 cents per mile driven for medical or moving purposes.
14 cents per mile driven in service of charitable organizations.

The rate for business miles driven during 2013 increases 1 cent from the 2012 rate. The medical and moving rate is also up 1 cent per mile from the 2012 rate.

Fiscal Cliff News

2013-01-03T19:43:00.000-06:00

Many of my clients are wondering what was renewed and what was not in the proposed tax bill. Here is a good summary of new/expiring and extended tax provisions:
http://www.thetaxbook.com/updates/TheTaxBook/Updates/2013-01-02_Fiscal_Cliff_News.pdf

Business and Math

2012-06-17T09:49:00.002-05:00

I just had to share this little snipped I read on a forum today.

Quote:

Originally Posted by Anonymous

DO I have to do the math thing about costs, labor, etc....I'm dead

Naw, you dont have to do the math.... but your chances for success are far greater if you do. It reminds me a little of the two fellas who went into the hay business. They could buy hay from the neighbor for $1.00 per bale and found a market for it about 50 miles away where the guy offered them $100 bucks for every 100 bales they could bring him. After about a week of loading, hauling, and unloading hay they noticed they were not prospering.... the brighter of the two asked the other.... "Do you think we need to get a bigger truck?"

Business and math go together.

Quickbooks Pro Download on Sale $99.00

2012-02-10T06:57:00.003-06:00

For those looking to buy Quickbooks Pro 2012 I saw it was available for just $99.99 for the download version. I don't know how long this price is good for so I'd take advantage of it now if you're looking to upgrade or buy the software!

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Changes to 2011 1099-misc reporting requirements

2012-01-10T13:58:00.002-06:00

If you're a business owner, there's a good chance that you'll be preparing 1099-misc slips sometime this month. There are some important changes to 1099-misc reporting requirements.

If you made payment to vendors via a third party payment system such as google checkout, credit-card, debit card, or paypal, do not include these amounts on the 1099-misc you issue to your vendor. The third party company will be responsible for reporting these payments on a form 1099-K.

Here's a link to the IRS instructions.

In most cases, 1099's should be issued to the recipient by January 31.

2012 Standard Mileage Rates

2012-01-05T11:57:00.001-06:00

Happy new year!

Here are the 2010 Standard Mileage Rates:

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

55.5 cents per mile for business miles driven
23 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

Changes to TX Ag Exemption System

2011-11-14T16:21:00.003-06:00

Beginning in 2012 individuals and businesses claiming an exemption an agricultural and timber purchases must provide a registration # provided by the Texas Comptroller of Public Accounts.

Who is eligible to register?

A person (person is generic this includes individuals and businesses) including a non-Texas resident, engaged in the production of agricultural or timber products for sale in the regular course of business is eligible for a registration.

Should I register?

If you make agricultural purchases that are eligible for the exemption and you are an eligible person you should register, otherwise you'll have to pay the sales tax when you purchase your agricultural items. If you're wondering what are eligible agricultural purchases here's a link to qualifying and non qualifying items: Exempt and Non Exempt Products

How do I register?

You can apply online via this page: Texas Agricultural and Timber Exemption Number Online Application . If you prefer to apply by paper you can click on the following link and complete and print a paper application: Texas Agricultural and Timber Exemption Number Application.

What do I need to register?

You'll need the basic information such as knowing your business entity (sole proprietorship, llc, partnership, corporation etc), name, mailing address, street address, owner social security #, business federal tax ID # and if registered with the state your state file #.

If you have questions about registering, please do not hesitate to contact me. Registering is simple but if you'd prefer you can request that I complete your registration for you. Please contact me by phone or email if you have questions.

Carolyn Miller, Equine and K9 CPA BLOG SPOT

IRS Increases Standard Mileage Rate for Final 6 Months of 2022

Mileage Rate Changes

New Round of PPP Loans

Do you Qualify for a PPP2 Loan?

Do you Qualify for a PPP first draw loan?

Maximum loan amount:

Eligible Costs for Forgiveness:

PPP Loan Forgiveness

How to Get Your PPP Loan Forgiven

Establishing your covered period:

When to apply for loan forgiveness:

How to apply for loan forgiveness:

Substantiating payroll expenses:

Substantiating non-payroll expenses:

2021 IRS Standard Mileage Rates

Coronavirus Aid, Relief and Economic Security Act (CARES Act), what it means to you and your business.

2017 Standard Mileage Rates

2016 Standard Mileage Rates

2015 Standard Mileage Rates

Time to complete forms 1099-misc

Congress Passes Extenders Package

Remember to check your bank statements and credit card statements...

1099-misc slips

Happy new year!

Free Software to Non-Profits

Simplified Option for Claiming Home Office Deduction

2013 Standard Mileage Rates

Fiscal Cliff News

Business and Math

Quickbooks Pro Download on Sale $99.00

Changes to 2011 1099-misc reporting requirements

2012 Standard Mileage Rates

Changes to TX Ag Exemption System