Sherrod CPA Office

IF YOU HAVE FILED A TENNESSEE FRANCHISE AND EXCISE TAX RETURN, THE TN GENERAL ASSEMBLY HAS CHANGED A LAW AND THERE IS A GOOD POSSIBILITY OF REFUND$ FOR LAST 4 YEARS. EFFECTED ARE LLC AND CORPORATE RETURNS FILED WITH THE TN DEPT OF REVENUE. GIVE US A CALL 615-384-1993

*Pastors Who Own Their Homes*
Some ministers and pastors own their homes. The portion of the minister’s compensation that the church designates as their “housing allowance” is not subject to federal income taxes so long as the minister uses it for housing-related expenses. In this situation, housing-related expenses may include:
-Principal payments on a mortgage loan
-Down payments and related costs for purchasing a home
-Property taxes
-Mortgage loan interest
-Utilities
-Furnishings and appliances
-Homeowner’s insurance
-Improvements
-Maintenance and repairs

--Self-Employed--BENEFITS!!!!
"Qualified property for Economic Stimulus" is property that qualifies for special depreciation deductions.
The equipment listed below must be purchased and put into use between January 1 and December 31 for the deduction.
*Equipment (machines, etc.) purchased for business use
*Tangible personal property used in business
*Business Vehicles with a gross vehicle weight in excess of 6k lbs.
*Computer
*Office furniture
*Office equipment
*Property attached to your building that is not a structural component of the building (i.e. a printing press, large manufacturing tools and equipment) LAND IMPROVEMENTS
*Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).

*Just an FYI for those of you with K-1s*

If you have an individual return that has a K-1 on it, the return cannot be electronically filed yet. The forms haven't been released by the IRS.
Currently, the IRS says the forms will be released on Feb 21st.

We are here to help!!
Call our office at 615-384-1993 or stop by to make an appointment with one of our tax experts today!!

Some tax info to start your day off!!
Call us at 615-384-1993 or come by today to speak with one of our tax experts! We are here to help!

Tax credits and deductions change the amount of a person's tax bill or refund. People should understand which credits and deductions they can claim and the records they need to show their eligibility.
**Tax credits
A tax credit reduces the income tax bill dollar-for-dollar that a taxpayer owes based on their tax return.
Some tax credits, such as the Earned Income Tax Credit, are refundable. If a person's tax bill is less than the amount of a refundable credit, they can get the difference back in their refund.
To claim a tax credit, people should:
• Keep records to show their eligibility for the tax credits they claim.
• Check now to see if they qualify to claim any credits next year on their tax return.
**Deductions
Deductions can reduce the amount of a taxpayer's income before they calculate the tax they owe.
Most people take the standard deduction. The standard deduction changes each year for inflation. The amount of the standard deduction depends on a taxpayer's filing status, age and whether they're blind and whether the taxpayer is claimed as a dependent by someone else.
Some people must itemize their deductions, and some people may choose to do so because it reduces their taxable income more than the standard deduction. Generally, if a taxpayer's itemized deductions are larger than their standard deduction, it makes sense for them to itemize.

Doug is doing bicep curls 

Doug's got our order ready for us at the Depot Bar & Grill! What's in your bag?

Feeling overwhelmed by your taxes?? We can help!!
Give us a call at 615-384-1993 to schedule an appointment with one of our CPA's!!

Tax season is here again!
We are here to help!
Call us at 615-384-1993 to set an appointment with one of our CPA's!

Gallatin will never be the same after this night!

ENERGY-EFFICIENT HOME IMPROVEMENT TAX CREDITS ARE IN TAX LAW FOR NEXT 10 years!!! Don’t miss out when tax time!
$$$$$ in your pockets

If you have not ate at this restaurant it needs to get on your bucket list….

It's Shop Small Saturday! Small businesses deserve our support, and we love partnering with as many small businesses as we can throughout the year to create fun specials for our community. Today, we hope you get a chance to head out and support local!

PROACTIVE ESTATE PLANNING - We have enjoyed the $12,920,000 Estate tax exemption for some time. In the year 2025 the Estate Tax exemption drops to $5,000,000. Obviously this will effect more taxpayers with a sucktion of tax dollars from their wallets.

Home of the free, because of the brave!! 🇺🇸

Pop
Diamond grill marksman!

When we say surf, you say TURF! SURF…(your turn in the comments!)

Our delicious surf and turf is back as a special this weekend. See you soon!

NEED TO KNOW BASIS

We are ahead of the corporate and partnership 2022 tax return filing deadline today. We are here till 5pm today should anyone need this service. 615-384-1993

BUSINESSES PONDER OVER THE WEEKEND: The Census bureau are sending out Census requests to various businesses...Pay special attention if these come to your businesses by certified mail. Prosecution provides for penalty up to $5000 for failure to report. Call 615-384-1993 for assistance!

As your business meals occur over this busy weekend, remember to document on back of the business meal receipt with who you were with and brief business topic discussed also be aware that unlike 2022 when taxpayers were able to deduct 100% of business meals for 2023 self-employed taxpayers will now be able to deduct 50% of those business meals. (50% better than 0%)!!!! Make your money count!

All you Tennessee State Licensed Contractors or wanna bees, no more waiting and scheduling your meeting on a certain day of the month with the Tennessee contracting board! Now you submit it all online and they get to you as they get to you....So submit anytime for New contractor's licenses or Monetary limit increases! Call us a 615-384-1993 for the CPA part of those needs!

Tax Tip!!

Changes to individual credits and deductions for tax year 2022

-Taxpayers may still qualify for temporarily expanded eligibility of the Premium Tax Credit, a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. To get this credit, taxpayers must meet certain requirements and file a tax return with Form 8962, Premium Tax Credit.

-The Child Tax Credit, the Earned Income Tax Credit and the Child and Dependent Care Credit have reverted to pre-COVID levels. This means that taxpayers will likely receive a significantly smaller refund compared to last year.
*For 2022, the Child Tax Credit is worth $2,000 for each qualifying child. A child must be under age 17 at the end of 2022 to be a qualifying child.
*For the Earned Income Tax Credit, eligible taxpayers with no children may get $560 for the 2022 tax year.
*For the Child and Dependent Care Credit, taxpayers may receive up to 35% of their employment-related expenses for 2022.

-Taxpayers that don't itemize and take the standard deduction cannot deduct their charitable contributions this year.

Tax Tip!

If taxpayers receive a Form 1099-K, they should use that information with their other tax records to determine their correct tax liability. Taxpayers must report all their income on their tax return unless it's excluded by law, regardless of whether they receive a Form 1099-K.

Taxpayers will receive Form 1099-K for business transactions, including income from:
-A business the taxpayer owns.
-Self-employment.
-Activities in the gig economy.
-The sale of personal items and assets.

Money received as a gift or for reimbursement does not require a 1099-K. Taxpayers can minimize the chance of an error by asking friends or family members to correctly designate that type of payment as a non-business-related transaction. The taxpayer should also make a note of what the payment was for and who sent it. Good recordkeeping is key.

Call or come talk to one of our financial advisors today!
615-384-1993

We're still going strong and staying busy!! If you have any questions, or you're still needing your taxes done, call or come by!!
615-384-1993

Are you dealing with damages from last week's storm??
This is useful information to keep in mind!!

*The Law of Matching in Tennessee*
By Brandon McWherter

A hail storm hits a shingled roof, but only damages a handful of shingles. Unfortunately, the shingles on the roof are no longer manufactured, which would result in a mismatched checkerboard of colors on the roof if only the few damaged shingles were replaced. In those circumstances, is the insurance company obligated to replace the entire roof? Common sense and an understanding of the purpose of insurance and indemnity tells me “yes.” Over the past few years, I’ve had numerous adjusters and defense attorneys argue with me about this and take the position that Tennessee law does not require “matching.” That’s not true – – there are actually at least two cases that support the idea that matching is required in order to put the insured’s property back in its pre-loss condition:

-Alexander v. Phillips, 1984 Tenn. App. LEXIS 3097 (Tenn. Ct. App. 1984) (affirming trial court’s award of damages for replacement of entire roof in breach of construction contract case, and noting that patching of cedar shake roof would end up in a “bad appearing roof”).
-Hutcherson v. Tenn. Farmers Mut. Ins. Co., 1986 Tenn. App. LEXIS 3259 (Tenn. Ct. App. 1986) (affirming trial court’s award of damages for replacement of entire front facade despite fact that only one area of the front facade was damaged because the “damaged spot alone was not capable of being repaired satisfactorily because of aesthetic reasons”).
Based on these cases, and absent policy provisions to the contrary, it seems fairly clear that Tennessee, like many others, is a “matching state.”