Posts by Pedro Gonzalez, CPA


  You likely have heard conflicting information on the deductibility of business meals with clients and prospects. I have spent time researching this issue, and my conclusion is that tax reform eliminated tax deductions for business meals with clients and prospects.   Before the 2017 The Tax Reform Act there were two conditions to client and prospect meals:   Required you to establish that the meal was directly related...

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  The IRS has provided two general purpose safe harbors for claiming a casualty loss related to a personal residence and its contents (in Revenue Procedure 2018-8), as well as one tailored for the hurricanes that took place in 2017(Revenue Procedure 2018-9). In a Revenue Procedure, IRS has provided a safe harbor method under which individuals may use one or more cost indexes to determine the amount of loss to their homes as a...

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  Discover Four Benefits of the Safe Harbor Expensing Rules   For 2018, you can elect the de-minimis safe harbor to expense assets costing $2,500 or less ($5,000 with audited financial statements or something similar). The term “safe harbor” means that the IRS will accept your expensing of the qualified assets if you properly abided by the rules of the safe harbor. Here are four benefits of this safe harbor: Safe harbor...

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  Lending corporate cash to shareholders can be an effective way to give the shareholders use of the funds without the tax consequences of dividends. However, an advance or loan to a shareholder must be a bona fide loan to avoid being classified as a constructive dividend. Further, the loan must have an adequate interest rate to avoid being classified as dividends under the below-market loan rules of Sec. 7872.   What is...

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      By now you have learned the disturbing news involving the now widely reported Equifax data breach affecting over 143,000,000 consumers. To put the massive size of this breach in perspective, there are about 326,000,000 people in the United States. While the credit reporting agency announced the breach on September 10th, the breach actually occurred July 29, which means sensitive data from about half of the U.S....

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