Federal Tax Relief Aimed to Alleviate COVID-19 Hardships

Jennifer Deroin Blog

The coronavirus (COVID-19) pandemic has already had widespread effects on the U.S. economy. Demand for many goods and services has stalled. Unemployment claims have skyrocketed. And many schools and businesses are operating online — if at all. Life has changed dramatically across the country.

The federal government has been working on various relief measures to help individuals and small businesses cope with the situation, including tax relief provisions. Here are the tax changes that have been finalized so far.

Guidance on Federal Income Tax Deadline Deferrals

On March 20, U.S. Treasury Secretary Steven Mnuchin announced on Twitter that the April 15 federal income tax filing deadlines will be extended until July 15.… Continue Reading...

Employer Coronavirus Guide

Employer Alert: Guidance for COVID-19

Jennifer Deroin Blog

Questions from employers and employees about coronavirus (COVID-19) pandemic are multiplying almost as fast as the virus itself. Employers need to rely on a combination of authoritative legal and medical advice, and their own common sense, to keep employees safe.

More COVID-19 News:
A Tax Filing Deadline Extension and HDHP TreatmentsPresident Trump announced thatthe April 15 tax filing and tax paying deadline will be extended for “certain” taxpayers due to the coronavirus (COVID-19). Trump announced the extension in an address to the nation on March 11.
Earlier that day, Treasury Sec. Steven Mnuchin said the payment delay would put more than $200 billion into the economy that would have gone into paying taxes in April.
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Warning: State Income Tax

Taylor Lee Blog

By: Braxton Parish, MSAT

In the e-commerce environment the term Wayfair (South Dakota v. Wayfair 17-494, 2018) is becoming more and more common. It’s no secret this iconic case has completely altered the sales tax landscape. However through this case, the Supreme Court case has done more than tighten rules around sales tax, it has also quietly opened the door to a topic that has likely flown under the radar of many online seller’s; state income tax.

Trying to keep taxation rules straight for all 50 states is a very overwhelming task for most everyone. A majority of sellers assume if the home state’s income tax return is filed, then the full compliance box can be checked.… Continue Reading...

Vacation Homes Classified as Rentals See Little Impact from Tax Reform

Jennifer Deroin Blog

There’s good news if you own a vacation home that you rent out: The Tax Cuts and Jobs Act (TCJA) didn’t have much effect on how your rental income and related expenses are treated under the tax rules. But those rules are still complicated. Here’s what you should know.

Classifying Your Property

Under the Internal Revenue Code and IRS regulations, there are two classifications for vacation homes.

1. Personal residence. Your property falls under this category if:

You rent it out for more than 14 days during the year, and
Personal use during the year exceeds the greater of 14 days, or 10% of the days you rent the home out at fair market rates.… Continue Reading...

Highlights of the New Tax Reform Law

Jennifer Deroin Blog


The new tax reform law, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the biggest federal tax law overhaul in 31 years, and it has both good and bad news for taxpayers.

Below are highlights of some of the most significant changes affecting individual and business taxpayers. Except where noted, these changes are effective for tax years beginning after December 31, 2017.


·        Drops of individual income tax rates ranging from 0 to 4 percentage points (depending on the bracket) to 10%, 12%, 22%, 24%, 32%, 35% and 37% — through 2025

·        Near doubling of the standard deduction to $24,000 (married couples filing jointly), $18,000 (heads of households), and $12,000 (singles and married couples filing separately) — through 2025

·        Elimination of personal exemptions — through 2025

·        Doubling of the child tax credit to $2,000 and other modifications intended to help more taxpayers benefit from the credit — through 2025

·        Elimination of the individual mandate under the Affordable Care Act requiring taxpayers not covered by a qualifying health plan to pay a penalty — effective for months beginning after December 31, 2018

·        Reduction of the adjusted gross income (AGI) threshold for the medical expense deduction to 7.5% for regular and AMT purposes — for 2017 and 2018

·        New $10,000 limit on the deduction for state and local taxes (on a combined basis for property and income taxes; $5,000 for separate filers) — through 2025

·        Reduction of the mortgage debt limit for the home mortgage interest deduction to $750,000 ($375,000 for separate filers), with certain exceptions — through 2025

·        Elimination of the deduction for interest on home equity debt — through 2025

·        Elimination of the personal casualty and theft loss deduction (with an exception for federally declared disasters) — through 2025

·        Elimination of miscellaneous itemized deductions subject to the 2% floor (such as certain investment expenses, professional fees and unreimbursed employee business expenses) — through 2025

·        Elimination of the AGI-based reduction of certain itemized deductions — through 2025

·        Elimination of the moving expense deduction (with an exception for members of the military in certain circumstances) — through 2025

·        Expansion of tax-free Section 529 plan distributions to include those used to pay qualifying elementary and secondary school expenses, up to $10,000 per student per tax year

·        AMT exemption increase, to $109,400 for joint filers, $70,300 for singles and heads of households, and $54,700 for separate filers — through 2025

·        Doubling of the gift and estate tax exemptions, to $10 million (expected to be $11.2 million for 2018 with inflation indexing) — through 2025


·        Replacement of graduated corporate tax rates ranging from 15% to 35% with a flat corporate rate of 21%

·        Repeal of the 20% corporate AMT

·        New 20% qualified business income deduction for owners of flow-through entities (such as partnerships, limited liability companies and S corporations) and sole proprietorships — through 2025

·        Doubling of bonus depreciation to 100% and expansion of qualified assets to include used assets — effective for assets acquired and placed in service after September 27, 2017, and before January 1, 2023

·        Doubling of the Section 179 expensing limit to $1 million and an increase of the expensing phaseout threshold to $2.5 million

·        Other enhancements to depreciation-related deductions

·        New disallowance of deductions for net interest expense in excess of 30% of the business’s adjusted taxable income (exceptions apply)

·        New limits on net operating loss (NOL) deductions

·        Elimination of the Section 199 deduction, also commonly referred to as the domestic production activities deduction or manufacturers’ deduction — effective for tax years beginning after December 31, 2017, for noncorporate taxpayers and for tax years beginning after December 31, 2018, for C corporation taxpayers

·        New rule limiting like-kind exchanges to real property that is not held primarily for sale

·        New tax credit for employer-paid family and medical leave — through 2019

·        New limitations on excessive employee compensation

·        New limitations on deductions for employee fringe benefits, such as entertainment and, in certain circumstances, meals and transportation

More to consider

This is just a brief overview of some of the most significant TCJA provisions.… Continue Reading...

Keep Tax Reform Proposals in Mind When Making Last-Minute Year-End Moves

Jennifer Deroin Blog, Uncategorized

As 2017 winds down, it’s time to consider making some moves to lower your federal income tax bill and position yourself for tax savings in future years. This year, the big unknown factor is whether or when major tax reform proposals will be enacted.

Even if all goes according to the GOP timeline, the changes generally won’t take effect until next year at the earliest.  So your 2017 return will follow the current rules. Here are five year-end moves for you to consider as Congress works on tax reform.

1. Prepay Deductible Expenditures

If you itemize deductions, accelerating deductible expenditures into this year to produce higher 2017 write-offs makes sense if you expect to be in the same or lower tax bracket next year.… Continue Reading...

Shipping Sales Tax

Sales Tax on Shipping Charges?

Jennifer Deroin Blog

By: Kayla Kormylo, Staff Accountant

Sales tax continues to be a pain point for most online sellers. The rules have evolved, becoming more complex and they are not consistent from state-to-state. One thing adding to the complexity most don’t think about is sales tax on shipping charges. Almost all states expect shipping and handling to be included in the sales tax calculation.

It’s important to know nexus, or a business connection between the state and seller, isn’t established just because you have sales in a state. There are many rules around what creates nexus or economic nexus in a state such as warehouse locations, employees, the volume of transactions, etc.… Continue Reading...

Time is Running Out for the New Sales Tax Amnesty Program

Jennifer Deroin Blog

By: Kayla Kormylo, Staff Accountant

The Online Marketplace Voluntary Disclosure Initiative hosted by the Multistate Tax Commission (MTC) deadline is less than two weeks away on October 17, 2017*.

*UPDATE:  The Amnesty application period was extended to November 1st, 2017.

Currently 25 states have agreed to this program and offer either full or partial relief — amnesty, for online retailers who have not been collecting and remitting sales tax. Many states follow legislation stating use of fulfillment warehouses establishes nexus and/or internet sales will create economic nexus. If either nexus or economic nexus is triggered, the online seller will be responsible to pay the state sales tax regardless if it was collected from the buyer.… Continue Reading...

Tips to Better Manage Your E-commerce Inventory

Jennifer Deroin Blog

By:  Michelle Dimas, Staff Accountant

When it comes to managing your Amazon or e-commerce business, no one knows the ins and outs of your business better than you. As a small business owner, you have a firm grasp on supplier relationships, the products that are selling, and your market share.  But, do you know how each of these items is impacting your bottom line?

E-commerce entrepreneurs’ most common “pain point” is inventory management. We are often told, “I can’t keep up on my inventory!  My products are selling quickly, but I don’t know if I’m making any money.”

You are not alone.  … Continue Reading...

New Sales Tax Amnesty Program Available for Amazon FBA Sellers

Jennifer Deroin Blog

By: Kayla Kormylo, Staff Accountant

Everyday, more and more consumers are turning to e-commerce over traditional retailers for their purchasing needs. At the rate e-commerce is growing, awareness of state sales and use tax requirements are becoming substantially more relevant. A select number of states have agreed to allow sales tax amnesty, or “forgiveness”, to third-party online sellers for certain unpaid state taxes.

From August 17 to October 17, 2017, Fulfillment by Amazon (FBA) sellers and other marketplace sellers have a unique opportunity in up to 21 states, as of current, to claim amnesty for prior unpaid state sales or use taxes.… Continue Reading...

How the New Sales Tax Amnesty Will Affect Amazon FBA Sellers

Jennifer Deroin Blog

Click & Mortar Accounting is proud to be recognized as a partner with Avalara.  Below is an excerpt and a link to their recent article regarding the new sales tax amnesty program for third-party sellers. There is limited time to take action – please contact us if you’d like to learn more or map out a plan for implementation.

Avalara Article – How the new sales tax amnesty will affect Amazon FBA Sellers

August 3, 2017

A new sales tax amnesty program for third-party sellers is in the works. It’s designed to encourage Fulfillment by Amazon (FBA) and other marketplace sellers to collect and remit sales tax, and is scheduled to run August 17 through October 17, 2017.… Continue Reading...

Individual Tax Calendar: Key Deadlines for 2017

Jennifer Deroin Blog

While April 15 (April 18 this year) is the main tax deadline on most individual taxpayers’ minds, there are others through the rest of the year that are important to be aware of. To help you make sure you don’t miss any important 2017 deadlines, here’s a look at when some key tax-related forms, payments and other actions are due. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you.

Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them.

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Feeling Overwhelmed?

Jennifer Deroin Blog

You’re likely experiencing a Transition Period

Every business has transition periods. Whether you’re a brick and mortar business or an e-commerce business, there are transition periods you will experience on your journey.  They bring along their own set of growing pains and plausible solutions – but they will generally feel like extreme periods of chaos and could leave you feeling overwhelmed.

To help define these chaotic periods, we reference the Business Growth Curve methodology based upon James Fischer’s work, where he identifies two distinct transition periods.

The First Transition Period Type

  •  The Wind Tunnel. This transition period is one where “old practices” must be examined and you determine, “is what got us here, going to get us there”?
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register your e-commerce business

Deciding What State To Register Your E-commerce Business In

Jennifer Deroin Sales Tax Nexus

By:  Michelle Dimas, Virtual CPA Specialist

Many people form businesses in their resident state for one of two reasons: 1.) it’s the clear choice, and 2.) Wait… I have options?   Deciding what state to register your e-commerce business in, should be considered carefully by considering multiple factors.

Filing in your state of residence can be a great option for many entrepreneurs, especially those who have a home office, physical store front, and/or do the bulk or all of their business in their home state. Depending on how many of these criteria you meet, you may have limited options or have no other choice but to file in your resident state.… Continue Reading...