Johnson & Nathaniel LLP

Consider these 5 tax planning strategies before the year ends: 1. Claim your sick days: If you're self-employed, the government is paying you up to $5,110 to take 10 sick days in 2020. Also, if you have a child and their school has been closed for in person learning, you can claim an extra $10,000 of family paid leave. Depending on your entity or how you are structured, you may need to take action before the year ends. Otherwise, you'll miss out on this benefit. 2. IRS Mini...mal Rental Use Rule: Rent out your home to your business for 14 days or less, and get a big tax write off. If you are a business owner, you can rent out your home to your own business for 14 days or less. This is called the Minimal Rental Use Rule, and it is completely separate from the home office deduction. By utilizing the minimal rental use rule, you'll get a deduction for your business, and it will be tax free income to you personally. 3. Avoid penalties on your unemployment compensation: If you've received unemployment benefits this year, consider using a tax tool estimator to see if they took out enough taxes from your unemployment compensation. If not, you're going to end up with a surprise tax bill, and could be charged penalties and interest. So, please make sure that enough taxes were taken out of your unemployment compensation. 4. Stock Loss Harvesting: If you lost money trading stock or crypto, you can sell the stock or that crypto for a loss, and claim that deduction to reduce your taxes. This is called stock loss harvesting. 5. If you're expecting to incur expenses in January or February, you might as well pay those bills now (i.e. any time before 2020 ends) so that you can use it as a write off in 2020, instead of waiting 12 months for you to reap those benefits. This could be things like rent, utilities, buying a laptop or other office supplies. As long as the payment is initiated by December 31 or product is mailed out by December 31, it will count as a deduction for 2020. DM us for more information on these and other tax saving strategies. .. . .. . . . #smallbusiness #business #taxtips #taxplanning #johnsonnathaniel #johnsontaxllp

When you get busy with your business, it’s easy to forget about your retirement accounts and medical coverages and plans. But year-end is approaching, and now’s the time to take action. Here are six strategies you can implement before the end of the year. Five of the strategies increase your tax deductions, and one (the Roth) strategy increases your retirement benefits.... 1. Put your retirement plan in place no later than December 31 so you are absolutely sure that you have a plan. In fact, be sure to make a contribution to the plan before December 31. 2. Convert your traditional IRA to a Roth IRA. The long-term savings here can be huge. Make sure to leave the converted funds in the Roth for at least five years. 3. If you have a Section 105 plan in place and you have not been reimbursing expenses monthly, do a reimbursement now to get your 2020 deductions, and then put yourself on a monthly reimbursement schedule in 2021. 4. If you have not implemented your qualified small employer HRA (QSEHRA), make sure to get that done properly now. If you have not yet put a QSEHRA in place and you plan to do so on January 1, do that now and just suffer that $50-per-employee penalty should you be found out. Alternately, consider implementing an individual care HRA (ICHRA) in 2021. 5. If you operate your business as an S corporation and you want an above-the-line tax deduction for the cost of your health insurance, you need the S corporation to (a) pay for or reimburse you for the health insurance and (b) put it on your W-2. Make sure that the reimbursement happens before December 31 and that you have the reimbursement set up to show on the W-2. 6. Claim the tax credit for the group health insurance you give your employees. If you provide your employees with group health insurance, see whether your pay structure and number of employees put you in a position to claim a 50 percent tax credit for some or all of the monies you paid for health insurance in 2020 and, possibly, prior years. DM us if you need more insights into these (or other) year-end strategies. ..... .... ... .. . . #smallbusiness #business #taxes #taxtips #johnsonnathaniel #johnsontaxllp

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Getting ready to participate in a virtual panel discussion about entrepreneurship at the Los Angeles Black Business Expo #lablackbusinessexpo

Justin Johnson is the founder and Managing Partner of Johnson & Nathaniel LLP, a full-service Accounting firm offering a broad range of tax accounting and advis...ory services for individuals, business owners, executives, and independent professionals. As managing partner, Justin brings wide-ranging experience from more than 17 years in Big 4 public accounting. He works with growing and mature businesses, with a high degree of concentration on minority-owned businesses. As a practitioner, Justin provides his clients with a unique combination of highly sophisticated technical guidance with a personable and collaborate approach. As an attorney and licensed CPA, with an LL.M in taxation and MBA in Finance, he uses his technical qualifications to work collaboratively with his clients as a full-service financial advisor. See more