Mark Wagner CPA

What Is My Current Cash Flow? Assess whether you are running “in the black” or “in the red” each month.

The new Covid Stimulus bill is on Biden's desk to sign. Here's what you need to know:

1. How much? The latest payments are $1,400 per household member, including adults, children and adult dependents such as college students and elderly relatives. (Adult dependents were ineligible for prior rounds of payments).

2. Who? Individuals with adjusted gross income up to $75,000, heads of household with AGI up to $112,500 and married couples with AGI up to $150,000 will get the full payments. Above that, the payments phase out.

3. How? The government will use the information it has on file from the 2020 tax return if that has been processed. If 2020 has not been filed, they will use your 2019 return.

Pro tips:

A. If you made more than the cutoff in 2020 but not 2019, delay your tax return. File an extension if necessary. The law explicitly prohibits the government from taking back any overpayment.

B. If you made more than the cutoff in 2019 but not in 2020, file pronto to get your money now instead of waiting until you file next years' taxes.

C. If you are just over the cutoff in both years and can get under it in 2020 by making an IRA contribution or other means, do so.

D. If you have a business and are near the cutoff, look for legal ways to defer income until 2021 or depreciate more items / look for more expenses you can claim for 2020.

Don't take criticism from people you would never go to for advice.

The government claims that there is little to no inflation.

Texas Workforce will not be setting 2021 unemployment tax rates until July. This is to help keep the tax rates low for employers who lost a lot of employees due to covid.

More good stuff from my friends at Riverchase Wealth Management LLC.

For those of you with rental properties looking to "trade up," a 1035 exchange may be just what you need.

Holler if you need more information.

What Is a 1035 Exchange? 1035 exchanges provide a way to trade-in an annuity contract or life insurance policy without triggering a tax liability.

Peace of Mind
is always
a good investment

Another good one from my friend Rett at Riverchase Wealth Management LLC

Buying vs. Leasing a Car Whatever your relationship with your car, it may eventually come time for a new one. Familiarize yourself with your options.

From my friends at Riverchase Wealth Management LLC.

Spotting Credit Trouble The wise use of credit is a critical skill. These 10 questions will help you assess your skill level.

IRS extends tax deadlines for Texas residents due to recent disaster declaration.

More details in comments below

"Winners never quit..."
Yes they do.
They quit doing stupid stuff.

New IRS requirements: What is Form 1099-NEC? - National Small Business Association What is Form 1099-NEC and who gets it? Find out new IRS requirements on reporting non-employee compensation from NSBA partner efile4biz.

Biden Tax Plan vs. Current

Top Bracket: 39.6% v 37%
Capital Gains: 39.6% v 20%
Corporate Tax: 28% v 20%
Payroll Tax: Additional 12.4% for incomes > $400k

*Qualified business income deduction for partnerships and S Corps; from 20% to 20% but phased out for incomes > $400k.

PPP UPDATE: congress passed a bill that extends the time to spend funds from 8 weeks to 24 weeks. Also reduces payroll minimum from 75% to 60%. This will make it much easier to get 100% forgiveness!

I have been building a forgiveness model - based on the old rules. Now I'll have to go back and retool that. Video coming soon!

Wondering what to do with your stimulus check? Here's some CPA advice.

1. If you are unemployed, use it for necessities. If you have been putting living expenses on a credit card, use the cash first and avoid making more debt. When you get back to work, you will still have to pay back that credit card. If you get back to work soon, you will have less debt to deal with.

2a. If you are working, save it. Even if "essential," your workplace could be shut down tomorrow if somebody gets infected. If you or a family member gets sick, you may not be able to work. Add it to (or create) an emergency fund.

2b. I would NOT recommend using it to pay down debt at this time. Not the mortgage or car, and not a credit card. If you pay down a credit card, the card company *may* reduce your limit, leaving you with less room to maneuver if 2a happens.

3. Meanwhile, hoard cash. If this economic damage is as severe as I suspect it will be, you will need it. Start a side hustle if you can. Think about what you can build, fix, etc in your spare time for cash. If you had a lawn mower and stuck your card on my door right now, you would have some weekly income cutting my grass.

4. Already in bad shape financially? Call the mortgage company, landlord, car bank or credit card company TODAY. Ask if you can skip a few payments, or maybe pay interest only for a few months. You get exactly zero of what you don't ask for.

Covid-19 may have us socially distant, but I’m still hard at work.
Thanks to tools like email, fax and dropbox, I’m still up and running.
Here to answer any tax questions you have or to get your taxes filed.

Get that refund check ASAP!

The IRS has extended the deadline to file your taxes!

But why wait? Take advantage of the self-isolation and get your tax documents ready.

Need help filing? Reach out to me here.