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Scott Farnes

Scott Farnes
Scott has over 25 years of accounting experience encompassing audit, accounting, and tax services. Scott’s industry experience includes small businesses, assisted housing, governmental clients, clients in the public housing industry, tax credits, construction contractors, and the nonprofit sector. He provides these clients with a variety of services including evaluating their business structure, keeping them current on required standards, performing financial statement audits, and tax return preparation.
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Recent Posts

The Home Office Deduction

Posted by Scott Farnes on Sep 10, 2020 7:55:00 AM

With more people working from home than ever before, taxpayers may be wondering if they can claim a home office deduction when they file their 2020 tax return next year. The short answer is that self-employed taxpayers who use their home for business may be able to deduct expenses for the business use of it whether they rent or own their home. If you are an employee, however, you are not eligible to take the home office deduction - even if you are working remotely in your home office.

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Topics: Taxes, Tax Deduction, Small Business, Tax Return, Tax Preparation, Business Expenses

RIC Shareholder Dividends Qualify as Section 199A

Posted by Scott Farnes on Sep 4, 2020 7:48:00 AM

Section 199A, enacted as part of the Tax Cuts and Jobs Act (TCJA), allows individual taxpayers and certain trusts and estates to deduct up to 20 percent of certain income (section 199A deduction). It is available to eligible taxpayers with qualified business income (QBI) from qualified trades or businesses operated as sole proprietorships or through partnerships, S corporations, trusts, or estates, as well as for qualified REIT dividends and income from publicly traded partnerships. The deduction is not available for C corporations.

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Topics: Taxes, Tax Deduction

Temporary Relief for Retirement Plan Participants

Posted by Scott Farnes on Aug 27, 2020 8:09:00 AM

Temporary administrative relief has been issued that helps certain retirement plan participants or beneficiaries who need to make participant elections by allowing flexibility for remote signatures. Generally, signatures of the individual making the election must be witnessed by a notary public or in the presence of a plan representative. This includes a spousal consent as well.

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Topics: Personal Finance, Retirement

Small Business Tax Tips: Payroll Expenses

Posted by Scott Farnes on Aug 18, 2020 8:16:00 AM

Federal law requires most employers to withhold federal taxes from their employees' wages. Whether you're a small business owner who's just starting or one who has been in business a while and is ready to hire an employee or two, here are five things you should know about withholding, reporting, and paying employment taxes.

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Tax Facts to Know If You're Selling Your Home This Year

Posted by Scott Farnes on Aug 13, 2020 8:31:00 AM

In most cases, gains from sales are taxable. But did you know that if you sell your home, you may not have to pay taxes? Here are ten facts to keep in mind if you sell your home this year.

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Topics: Taxable Income, Personal Finance, Taxes, Home Ownership

Closing Your Business: A Tax Checklist

Posted by Scott Farnes on Jul 30, 2020 8:06:00 AM

More than 100,000 small businesses have closed due to COVID-19. If yours is one of them, you should be aware that there is more to closing a business than laying off employees, selling office furniture, and closing the doors - you must also take certain actions as required by the IRS to fulfill your tax obligations. For example, if you have employees, you must file final employment tax returns as well as make final federal tax deposits of these taxes.

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Topics: Business Ownership, Small Business

Employee Retention Credit Deadline July 31

Posted by Scott Farnes on Jul 15, 2020 8:07:00 AM

As a reminder, employers whose business has been financially impacted by COVID-19 can take advantage of the Employee Retention Credit, a refundable tax credit designed to encourage businesses to keep employees on their payroll. The credit is worth 50 percent of up to $10,000 in wages paid by an employer. Employers that are eligible for the credit for the first and second quarters of 2020, can apply for the credit when they file their second-quarter filing of Form 941, Employer's Quarterly Federal Tax Return which is due July 31.

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Topics: Business Ownership, Small Business

Flexibility for Taxpayer Elections in Cafeteria Plans

Posted by Scott Farnes on Jun 24, 2020 8:06:00 AM

Temporary changes to Section 125 cafeteria plans due to the coronavirus pandemic allow flexibility for taxpayers participating in cafeteria plans. These changes include extending the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes.

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Topics: Personal Finance

Ready to File? This Tax Records Checklist Will Help

Posted by Scott Farnes on May 13, 2020 8:03:00 AM

If you're a taxpayer who has not yet filed their 2019 tax return, you may be getting ready to do so now. One of the first things you will need to do - before visiting your tax preparer - is to gather all of your year-end income documents. Doing so ensures that your tax return is complete and accurate.

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Topics: Taxes, Record Keeping, Tax Return, Tax Preparation

Watch Out for Coronavirus Scams

Posted by Scott Farnes on Apr 28, 2020 7:56:00 AM

Taxpayers should be on the lookout for calls and email phishing attempts regarding the Coronavirus, or COVID-19 that could lead to tax-related fraud and identity theft. Because criminals take every opportunity to perpetrate a fraud on unsuspecting victims during times of need, taxpayers should also be skeptical about text messages received and websites and social media attempts to request money or personal information.

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Topics: Personal Finance, Tax Scam

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