Accounting & Bookkeeping – Bregante+Company LLP

Non-Profits and the Employee Retention Credit

The employee retention credit (ERC) is a form of government assistance created under the Coronavirus Aid, Relief and Economic Security (CARES) Act to help businesses and organizations keep employees on their payroll during the pandemic. While the credit provided an opportunity for substantial savings for non-profit organizations, these organizations now need to properly account for this credit.

A non-profit employer is eligible if the organization:

Experienced a full or partial suspension of operations because of a government-ordered shutdown during 2020 or 2021.
Experienced a decline in revenue of more than 50% during 2020 or 2021 compared to the same quarter of the year prior.

Cumulatively, eligible employers could receive a refund of up to $5,000 in 2020 and up to $7,000 in 2021, per employee per quarter.

While the ERTC was initially set […]

By Tonia Wasley|June 16th, 2022|Categories: Accounting & Bookkeeping, Nonprofit Organizations|Comments Off

Final regulations regarding substantiation for charitable contributions

On July 30th 2018 the IRS issued final regulations relating to the substantiation and reporting requirements for charitable contributions which address substantiation requirements for contributions of more than $500 and of clothing and household items.

In order to substantiate a charitable contribution the following substantiation requirements must be met:

Cash Contributions

Under $250

Bank record or written communication from the charity
- Blank pledge cards provided by the donee organization are not sufficient substantiation

$250 or more

Obtain contemporaneous written acknowledgement from the donee organization

Non-cash Contributions

Donated property must be in good condition or better.

Under $250

Obtain a receipt or keep reliable records
- Reliable records must show the following information:
  - Name and address of the donee
  - Date of the contribution
  - Description of the property in sufficient detail including the condition
  - Fair market value on the […]

By Daniel Novak|August 10th, 2018|Categories: Accounting & Bookkeeping, Individual Tax, IRS, Nonprofit Organizations|Comments Off

Deferral of Stock Options or RSU Income Available Under the Tax Act of 12/22/2017

In the past, non-statutory stock options (non-ISOs or ESPPs) and restricted stock grants/RSUs were considered taxable income at FMV at exercise/vesting, potentially creating a tax problem for an employee of a privately held company, as there would be no avenue for selling some of the shares to cover the related tax liability. Starting in 2018, a qualified employee of a qualified company can postpone recognition of that income for up to 5 years, but no later than an occurrence of a triggering event (e.g. an IPO). The newly introduced Section 83(i) of the Internal Revenue Code provides guidance.

For more details click here.

By BCo Author|June 29th, 2018|Categories: Accounting & Bookkeeping, Business Tax, Individual Tax, IRS|Comments Off

Reporting Bitcoin Cash

On August 1, 2017 Bitcoin Cash split from Bitcoin. Each investor that owned Bitcoin on or before the split received Bitcoin Cash in an amount equivalent to their current Bitcoin holdings. Investors who were fortunate enough to receive the cryptocurrency for free must report it on their 2017 tax return as income.

Click here for more info.

By BCo Author|June 18th, 2018|Categories: Accounting & Bookkeeping, Business Tax, Individual Tax|Comments Off

California Supreme Court Ruling Significantly Limits Independent Contractor Classification

The California Supreme Court has established new criteria for classifying workers as Independent contractors. In Dynamex Operations West, Inc. v. Superior Court, the Court rejected the previous multi-factor test and instead issued a rigid 3-factor test, called the “ABC” test.

Under the ABC test, each of the following three factors must be met in order to classify a worker as an independent contractor:

The worker must be free from the control and direction of the hiring company in performing the work.
The work must take place outside the usual course of the business of the hiring company’s business.
The worker is customarily engaged in an independent established trade, occupation or business.

This ruling will no doubt have a significant impact on gig companies in the Bay Area (Uber, Lyft, and DoorDash, etc.), […]

By Mimi Lee|June 6th, 2018|Categories: Accounting & Bookkeeping, Announcements, Business Operations, Business Tax, Individual Tax, IRS, Real Estate, Retirement Planning|Comments Off