relief

CARES ACT Changes Retirement Plan and Charitable Contribution Rules

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As we all try to keep ourselves, our loved ones, and our communities safe from the coronavirus (COVID-19) pandemic, you may be wondering about some of the recent tax changes that were part of a tax law passed on March 27.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains a variety of relief, notably the “economic impact payments” that will be made to people under a certain income threshold. But the law also makes some changes to retirement plan rules and provides a new tax break for some people who contribute to charity.

Waiver of 10% early distribution penalty

IRAs and employer sponsored retirement plans are established to be long-term retirement planning accounts. As such, the IRS imposes a penalty tax of an additional 10% if funds are distributed before reaching age 59½. (However, there are some exceptions to this rule.)

Under the CARES Act, the additional 10% tax on early distributions from IRAs and defined contribution plans (such as 401(k) plans) is waived for distributions made between January 1 and December 31, 2020 by a person who (or whose family) is infected with COVID-19 or is economically harmed by it. Penalty-free […]

Cash Payments and Tax Relief for Individuals in New Law

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A new law signed by President Trump on March 27 provides a variety of tax and financial relief measures to help Americans during the coronavirus (COVID-19) pandemic. This article explains some of the tax relief for individuals in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Individual cash payments

Under the new law, an eligible individual will receive a cash payment equal to the sum of: $1,200 ($2,400 for eligible married couples filing jointly) plus $500 for each qualifying child. Eligibility is based on adjusted gross income (AGI).

Individuals who have no income, as well as those whose income comes entirely from Social Security benefits, are also eligible for the payment.

The AGI thresholds will be based on 2019 tax returns, or 2018 returns if you haven’t yet filed your 2019 returns. For those who don’t qualify on their most recently filed tax returns, there may be another option to receive some money. An individual who isn’t an eligible individual for 2019 may be eligible for 2020. The IRS won’t send cash payments to him or her. Instead, the individual will be able to claim the credit when filing a 2020 return.

The income thresholds

The […]

By |March 31st, 2020|child, individuals, New Tax Laws, relief, tax planning|0 Comments

FAQs Related to Disaster Recovery and the Fires

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Our CPA’s have compiled a list of 25 frequently asked questions related to fire victims and the recovery process. This document will continue to be updated over time as new questions roll in. If you have any additional questions in the meantime that aren’t answered below, please feel free to contact us at Linkenheimer LLP. We’ll continue to work side by side with all of you during this rebuilding process as we put our great community back together.

Frequently asked questions related to disaster relief for those affected by the fires: 

  1. Can an employer make a payment to an employee for missed time as a result of the fire and have that payment excluded from the employees gross income? No, the payments would be considered taxable wages.
  1. What information is needed to substantiate a casualty loss? To substantiate your loss, you’ll need the following, the type of casualty and date it occurred, proof that you were the owner of the property, or if you were a lessee, that you were contractually liable for the damage, whether a claim for reimbursement exists for which there is a reasonable expectation of recovery and documented […]
By |November 8th, 2019|Fire Relief Info|0 Comments

Some California Employers in Sonoma and Los Angeles Counties Get Extra Time for Tax Responsibilities

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Some California employers in Sonoma and Los Angeles Counties get extra time for tax responsibilities, says the CA Employment Development Dept. (EDD). Those employers who were directly affected by the Kincade and Tick fires, which began on Oct. 23, may request up to a 60-day extension of time from the EDD to file their state payroll reports and deposit payroll taxes without penalty or interest. To get an extension, a written request from the employer must be received within 60 days from the original delinquent date of the payment or return. Please contact your Linkenheimer CPA with questions or for more info: https://bit.ly/331PygJ

Casualty Loss Deductions: You Can Claim One Only for a Federally Declared Disaster

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Unforeseen disasters happen all the time and they may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act, eligible casualty loss victims could claim a deduction on their tax returns. But there are new restrictions that make these deductions much more difficult to take.

What’s considered a casualty for tax purposes? It’s a sudden, unexpected or unusual event, such as a hurricane, tornado, flood, earthquake, or fire; an accident or act of vandalism; or even a terrorist attack.

Unfavorable change

For losses incurred in 2018 through 2025, the TCJA generally eliminates deductions for personal casualty losses, except for losses due to federally declared disasters. For example, during 2019, there were presidential declarations of major disasters in parts of Iowa and Nebraska after severe storms and flooding. So victims there would be eligible for casualty loss deductions.

Note: There’s an exception to the general rule of allowing casualty loss deductions only in federally declared disaster areas. If you have personal casualty gains because your insurance proceeds exceed the tax basis of the damaged or destroyed property, you can deduct personal casualty losses that aren’t due to a federally declared […]

By |April 23rd, 2019|business, deduction, deductions, disaster, New Tax Laws|0 Comments

Victims of the Pawnee Fire in Lake County Get Tax Relief

Victims of a California wildfire, dubbed the Pawnee Fire in Lake County, get tax relief from the CA Employment Development Dept. (EDD). Employers directly affected by the fire (which started on 6/23/18) may request a 60-day extension to accomplish some tax-related tasks. The tasks include filing state payroll reports and paying state payroll taxes. No penalty or interest will be charged to employers that are granted extra time. A written request for an extension must be received by EDD within 60 days from the original delinquent date for payments and returns.

By |July 12th, 2018|ca, extension, Fire Relief Info, tax|0 Comments

Disaster Relief Provisions in the Bipartisan Budget Act of 2018

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On February 9, Congress passed, and the President signed into law, H.R. 1892, the “Bipartisan Budget Act of 2018” (the Budget Act, P.L. 115-123). In addition to providing a continuing resolution to fund the federal government through March 23, this 2-year budget contains a host of tax law changes. The Act retroactively extends through 2017 over 30 so called “extender” provisions, provides a number of miscellaneous tax-related provisions, and includes tax relief to victims of the California wildfires and Hurricanes Harvey, Irma, and Maria.

Relief from early withdrawal tax for California wildfire distribution. A distribution from a qualified retirement plan, a tax-sheltered annuity plan, an eligible deferred compensation plan of a State or local government employer, or an individual retirement arrangement (IRA) generally is included in income for the year distributed. In addition, unless an exception applies, a distribution received before age 59½ is subject to a 10% additional tax under Code Sec. 72(t) (the “early withdrawal tax”) on the amount includible in income.

In general, a distribution from an eligible retirement plan may be rolled over to another eligible retirement plan within 60 days, in which case the amount rolled over generally is not includible in income. The 60-day requirement can be waived by IRS in […]

By |February 16th, 2018|disaster, New Tax Laws, relief|0 Comments

Reminder: Property Tax Relief Available for Those Impacted by Fires

If your property has been damaged by the recent fires, mudslides, erosion, and flash flooding you may be eligible for property tax relief. In many cases, the damaged property can be reappraised in its current condition, with some taxes refunded to the property owner. Once rebuilt, the property’s pre-damaged value will be restored.

To qualify for property tax relief, you must file a claim with your county assessors’ office within 12 months from the date of damage or destruction. The loss estimate must be at least $10,000 of current market value to qualify.

Owners of eligible property may also apply for deferral of the next property tax installment on the regular secured roll or tax payments on the supplemental roll, without penalties or interest. The disaster must be the result of a Governor-proclaimed state of emergency. When a timely claim for deferral is filed, the next property tax installment payment is deferred without penalty or interest until the county assessor has reassessed the property and a corrected tax bill has been sent to the property owner.
For further information on property tax disaster relief, please see the new Disaster Relief website with helpful […]

By |February 1st, 2018|disaster, Fire Relief Info, property tax|0 Comments

Rental Resources and List of Utilities

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For all those who were displaced by the wild fires in Sonoma County, below is a list of Property Management Companies and Apartment Complexes:

PROPERTY MANAGEMENT COMPANIES – Sonoma County

Westgate Property Management – 707-769-9590
Mahoney Davison Property Management – 707-762-7710
Century 21 Bundesen Property Management – 762-7777
North Bay Property Management – 707-303-3748
DeDe’s Rentals – 707-523-4500
Pacific Properties – 707-206-6645
Hills & Homes – 707-585-2913
Sonoma County Property Rentals – 707-596-1020
Kelley Rentals – 707-824-2222
Alliance Property Management – 707-524-8380
Timely Property Management – 707-588-9200
Baker & Associates – 707-542-4700
Kelley Rentals – 707-824-2222
Task Property Management – 707-579-2013
W Property Management – 707-545-6187
Rental Property Management – 707-843-3696
Safer Property Management – 707-978-4303

APARTMENT COMPLEXES

Rohnert Park
Copeland Creek – 707-586-9741
Creekview Place Apartments – 707-664-8986
Fiori Estate Apartments – 844-404-4061
Oak View of Sonoma Hills (Senior) – 888-321-0662
Park Ridge Apartments – 707-400-6865
Americana Apartments – 707-584-3522
Vintage Point Apartments – 707-664-8028
Dalewood Apartments – 707-664-8432
Edgewood Apartements – 707-585-2241
Santa Alicia Apartments – 707-795-1465
Willow Creek Apartments – 707-739-4189
The Reserve at Rohnert […]

By |November 8th, 2017|Community, disaster, relief|0 Comments

Insurance Tips and Rebuilding Questions

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As we look into the future and the rebuilding of our county begins, we are faced with uncertainty and questions. We have compiled some common insurance questions and tips and hope that these will help throughout the process. If you have any questions, please let us know. We are also hosting three seminars in November on disaster relief and the impact on taxes and your business. For more info or too sign up, please click here.

1. Be pro-active in the claim process and keep good notes.
2. You’re not on a level playing field when you’re dealing with an insurance claim.
3. Don’t pad or exaggerate your claim.
4. Give your insurance company a chance to do the right thing, but don’t mistake a friendly representative for a friend.
5. Document and support your claim with proof, details and estimates.
6. Present clear requests in writing that explain what you need, when you need it, and why you’re entitled to it.
7. Think of your insurance claim as a business negotiation—you’re dealing with a for-profit company.
8. Don’t sign legal documents without consulting with a qualified attorney. There are many local attorneys who […]

By |November 8th, 2017|Community, disaster, relief|0 Comments