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The cost of printing and mailing catalogues has now exceeded our ability to send them, so our office has designed a PDF version of our 2021 catalogue listing topics, live courses, webinars, etc.  Click here to view or download the catalogue
 
2021 Updates through 11/14/2021
2022   
Pension Updates:
IRA unchanged at $6,000 + $1,000 over 49 catch up
401k Deferral increased to $20,500, catch up unchanged, max contribution $61,000
SEP max contribution $61,000
SIMPLE Deferral increased to $13,000
 
Employee Retention Credit Update-Infrastructure Act signed 11/15/2021
Conventional ERTC ends 9/30/2021
Startup business ERTC available through 12/31/2021
 
IRS
Nov. 10 Taxpayer Advocate Service announces they will
no longer accept most cases
Rev Proc. 2021-47 Homeowners Assistance Fund Payments Not Taxable
 
Social Security and Medicare
5.9%
COLA increase for Social Security benefits in 2022
$147,000
wage base for FICA in 2022
14.5%
Medicare premium increase for 2022!!
 
1040 In Depth Manual Corrections
Page                Correction
428                  Example 1, Basis should be $9,750 not 750
594                  All code references should be 197 not 179
912                  Zero line in table s/b $21,430 (not $15,980) and $27,380 (not 21,920)
912                  Investment income under table S/B $10,000 not $3,650
912                  Maximum contribution Zero S/B $1,502 not $543
913                  Item “D” change to $10,000 from $3,650
 
New Webinars for West Coast, Alaska, Hawaii         PST                 Alaska             Hawaii
1040 In Depth        1/12 & 1/13/22                            9AM-5PM        8AM-4PM   6AM-2PM
 
Business Tax In Depth      1/10 & 1/11/22                9AM-5PM        8AM-4PM   6AM-2PM
 

1040 In Depth-2 Hour Live Segments with Bob
(12/20-23 and 12/27-30 daily)                        3PM-5PM        2PM-4PM  12PM-2PM
 
Updated Cryptocurrency Recording
The popularity of our cryptocurrency discussion has led to 2 outcomes. First, we re-recorded it on Friday 11/12/21 and will be replacing that recording in all online accounts, self-study and rebroadcasts. Second, we have developed a new client letter regarding crypto currency and have re-printed it below.
 

 
 
Updated Client Letter (11/2021) regarding crypto currency
 
Dear client,
 
The last two years have seen explosive growth in US consumer interest in crypto-currency transactions, purchases and use. Sadly, very few consumers understand the income tax and foreign reporting obligations that accompany crypto-currency activities, and the incorrect and misleading information floating around on the internet is frightening to we tax professionals.
 
Congress and the IRS have both become aggressively involved in monitoring the activities and the failure to correctly report crypto, and on November 15th the President signed even stronger legislation to track the activities. As an example, were you aware that one penalty for failure to report crypto activities can be 50% of the highest balance in the account each year?
 
We must strongly remind you that crypto activity must be reported to us so that we may appropriately report it on your tax return. Additionally, because of the compliance rules, the reporting is extraordinarily complex, and we will need you to consider using a tax basis tracking software to even start trying to prepare your return. Call or email us for a recommendation. To get your attention, the lowest price that the online tax trackers charge to prepare a return with cryptocurrency activities is $2,500, so be forewarned that this activity on your part will be greeted with a huge fee on our part. Our industry is seeing tax returns requiring as many as 20,000 separate entries on the return, and several hundred entries is not unusual at all for individuals trading crypto or using it to buy stuff. The most basic rule to investing is to understand the investment and its related reporting requirements and we are afraid that few Americans understand either when it comes to cryptocurrency.
 
Here are the 7 activities that require individual transaction reporting in addition to just reporting the existence of the account. You read that correctly-each individual transaction must be individually reported. For example if you use a crytpo currency to buy a cup of coffee we must report that transaction individually on your return!
 
  1. Selling (Converting) crypto to US Dollars
  2. Trading 1 crypto for another
  3. Spending crypto directly for goods or services
  4. Mining crypto from your own computers
  5. Staking or lending crypto and receiving payment in crypto or dollars
  6. Receiving Airdrop crypto
  7. Getting paid in crypto
 
Items 1,2 and 3 require that we report each and every transaction separately on your return!! Potentially hundreds or thousands of transactions must be reported if you are spending cryptocurrency, trading (even via a “Bot”), mining, etc.
 
In summary, this year we are going to remind you in our organizers, interviews and engagement letters that these actions must be disclosed so that we may report them and have you avoid penalties.
 
Sincerely,


To Download letter doc: CLICK HERE
Our Fingertip Tax Guides are now available to be shipped! If you will be attending a LIVE 1040 Tax in Depth seminar, you will be getting one at the seminar, for free. If you are attending via self sponsored WEBINAR or SELF STUDY, you can find the link below to purchase. 

Click HERE for single Fingertip Tax Guide or package of 5 Fingertip Tax Guides
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Upcoming Seminars
Upcoming Webinars
*All Webinars listed in Eastern Time Zone.*

NOVEMBER
11/17 Earned Income Tax Credit
11/17 IRS Representation
11/17 1041's for Trusts & Estates
11/17 AICPA Ethics (For CPA's)
11/17 Home Office Deduction
11/18 & 11/19 1040 Tax in Depth
11/18 Tax Treatment of Sickness & Injury Plans
11/18 Social Security
11/18 The Section 199A Pass-Through Deduction
11/18 EITC Due Diligence (For EA's)
11/19 Vacation Rentals
11/19 Complete Retirement Guide
11/19 From Tires to Blinkers, The Guide to Business Vehicles
11/19 Payroll-Hiring, Compliance & Reporting
11/22 & 11/23 1040 Tax in Depth
11/22 & 11/23 Business Tax in Depth
11/23 Compilations
11/24 Accounting & Auditing Update
11/24 Estate & Gift Tax Update
11/24 Like Kind Exchanges
11/29 Payroll-Year End Compliance: W2's & 1099's
11/29 & 11/30 1040 Tax in Depth
11/29 Crypto Currency & New Economy
11/29 Cancellation of Debt
11/29 Employee or Independent Contractors
11/30 IRA's, Roth's & Conversions-After CARES
CLICK HERE for all Upcoming Seminars
CLICK HERE for all Upcoming Webinars
You have questions. Bob has answers.
 
Last week's questions are below! To access this and other "Talking With TaxSpeaker" videos, click the image above and subscribe. Your subscription will grant you access to past, present, and future videos for the duration of your subscription. The cost is $20/mo or $200/yr (17% less!). Submit your questions to info@taxspeaker.com and tune in weekly for answers from Bob! 
 
Last week's questions:

1.On the cashing in of cryptocurrency when I use it to buy coffee how do I know what my cost basis is?
2. I heard you no longer recommend Token Tax for crypto activity reports. Can you say why and what do you recommend?
3. Your story on crypto mining is intriguing-would you recommend I set up some mining rigs myself?
4. My son was claimed as my dependent in 2019 and I got a $1400 stimulus check for him in April. This year and in 2020 he was independent. Do I have to pay back the stimulus check since he did not qualify in 2020?
5. How do I pay back the advance child credit if I shouldn’t have gotten it?
6. I want to put in an electric charge plug for my electric car. Does this qualify for any credits?
7. If my 16-year-old daughter has a summer job and earns $6,500, does the kiddie tax apply?
8. Can I reprint your list of 10 common nontaxable income items?
9. If my client had a home mortgage before the law changed in 2017 and refinanced this year pulling out additional money to buy a car can he still deduct the interest if his total mortgage is < the $1,000,000 limit?
10. Can I deduct points paid on a 2nd home mortgage as long as I am under the maximum mortgage debt rule?
11. Client sold a home with a reverse mortgage and paid $11,700 in interest at the time of sale. Is this qualified as a mortgage interest deduction?
12. Is the direct IRA to charity rule now only at age 72 and over since they changed the RMD age rule?


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