Category: News & Updates

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We can help you with any legal documents that you may need assistance with such as

  • Trust
  • Living wills
  • Last Will and Testament

Contact us 321-754-1360

 

Are you ready for Tax Season?

Preparing for Tax Season

Are you ready for Tax Season? Now is the perfect time to prepare. You can start organizing your tax documents.

  • Prepare a checklist.
  • Check your return from last year.
  • Follow us on IG and Facebook and be on the lookout for our updates and checklists. 

How to depreciate your property!

Depreciation is an annual tax deduction that allows small businesses to recover the cost or other basis of certain property over the time they use the property. It is an allowance for the wear and tear, deterioration or obsolescence of the property.

Small businesses can depreciate property when they place it in service for use in their trade or business or to produce income. The business stops depreciating property when they have fully recovered their cost or other basis or when they retire it from service, whichever happens first.

What property is depreciable?
Small businesses can depreciate machinery, equipment, buildings, vehicles, and furniture. They cannot claim depreciation on personal property. If a business uses an asset, such as a car, for business or investment and personal purposes, the business owner can depreciate only the business or investment use portion. Land is never depreciable, although buildings and certain land improvements may be.

Businesses may depreciate property that meets all these requirements. The business must:

  • Own the property. The business is considered to own property even if it is subject to a debt.
  • Use the property in a business or income-producing activity. If the property is used to produce income, the income must be taxable. Property that’s used solely for personal activities can’t be depreciated.
  • Be able to assign a determinable useful life to the property. This means that it must be something that wears out, decays, gets used up, becomes obsolete or loses its value from natural causes.
  • Expect the property to last more than one year. It must have a useful life that extends substantially beyond the year a business places it in service.
  • Not depreciate excepted property. Excepted property includes certain intangible property, certain term interests, equipment used to build capital improvements, and property placed in service and disposed of in the same year.

Small businesses should use Form 4562 to figure their deduction for depreciation.

Tax Season 2020 Filing Deadlines

  • September 15 — Individuals
    Make a payment of your 2021 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment. If you need assistance or clarity reach out to your tax advisor.
  • September 15 — S Corporations
    File a 2020 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you timely requested an automatic extension on or before March 15, 2021
  • September 15 — Partnerships
    File a 2020 calendar year return (Form 1065). This due date applies only if you were given an additional extension
  • September 15 — Corporations
    Deposit the third installment of estimated income tax for 2021 
  • October 15 — Individuals
    If you have an automatic extension to file your income tax return for 2020, file Form 1040 and pay any tax, interest, and penalties due.   
  • December 15 — Corporations
    Deposit the fourth installment of estimated income tax for 2021

Give us a call if you or someone you know hasn’t filed their return or if you are a corporation or file a Schedule C to discuss your options.

The 2021 American Rescue Plan and Child Tax Credit / Child Allowance

Q: What is the American Rescue Plan?

A: The American Rescue Plan is a major economic stimulus package that will provide immediate relief for children and families, work to address the racial and economic injustices COVID-19 has exacerbated, and take a long-overdue step toward ending our nation’s shameful child poverty crisis by cutting child poverty in half. It was signed into law in March 2021.

Q: How will it help children and families?

A: This package includes several different forms of direct aid for parents and families that will make an immediate difference for those who are struggling. It extends key supports that have been helping families impacted by the crisis for the past year, like housing and nutrition assistance. The American Rescue Plan also includes long-awaited investments in child care and education that will finally help children get back in schools and parents get back to work.

Q: What can I expect to see as a result of the American Rescue Plan?

A: Millions of parents will receive a new per-child allowance — the expanded Child Tax Credit (CTC) — beginning this summer, which will arrive in the form of a monthly check to help families afford the everyday expenses of raising children. Many adults can also expect to receive another stimulus check for themselves and their dependents. Affordable health coverage will be expanded, unemployment benefits for those who have lost work will be extended through the summer, and there is new support for those who need to take family leave. Communities will also get the funding and supplies they need to ramp up COVID-19 vaccinations and testing.

Q: What is the Child Tax Credit?

A: The historic expansion of the Child Tax Credit means that families will receive $3,600 per child under age 6 and $3,000 per child age 6 to 17, paid out in periodic installments beginning in July for one year. The Children’s Defense Fund is working hard to ensure this poverty-fighting child allowance will become permanent. Read more about this below.

Learn more at: IRS.gov