In the ever-evolving socioeconomic world we live in, it is highly likely you have run across the words cryptocurrency, bitcoin, blockchain, or digital assets. For most of you reading this it is likely you are thinking “I’ve heard of it on the news or from a family member that’s about it”. We understand it is a very new space and a mysteriously innovative technology most people have not taken the time to explore and dive deeper into. That said, with current events unfolding such as SEC registration of the first bitcoin exchange-traded fund, large institutional banks offering crypto services to high net worth clients, launching of the first mainstream U.S. coin application “Coinbase”, recognition and legislative discussion by the United States Congress along with the Federal Reserve as documented in its quarterly minutes, and lastly legalization of bitcoin as legal currency in El Salvador, we can no longer take a back seat while the world marches forward. With all the global changes occurring, we have decided to move forward with our digital custodial services, and are offering them to our existing client base and looking to grow this area of the firm. 

If you have interest in this service or are interested in learning more about our services or the basics of cryptocurrency, please feel free to reach out to your CPA advisor who you worked with this past tax season. Many of our associates here are in the process of obtaining certifications in becoming blockchain and bitcoin professionals. We see this technology and industry continuing to progress exponentially into the future.  We are reaching out to help guide our clients on their future financial/investment changes and are excited to be a resource for you.

If interested please contact John Allegretti, our Digital Asset Manager, at jallegretti@drausandassociates.com or by phone at 224-985-3000.

There is a lot of uncertainty in the world right now regarding taxes, government loans, and stimulus checks.  We at Draus and Associates have been working countless hours and attending numerous webinars to understand the new legislation passed by the government. Please follow our Twitter account @DandAcpas where we will be posting information from reliable sources regarding the government changes due to COVID-19.

Small Business Administration Paycheck Protection Program

The idea behind this SBA loan from the government is to subsidize small businesses and help them keep their employees on the payroll.  The goal is to help the over-flooding of state unemployment agency applications and get people back to work.  There are specific requirements you need to meet to obtain these loans and for potential forgiveness of this money from the government. 

CARES Act Stimulus Checks

The Department of Treasury has begun to issue the CARES Act stimulus checks as of the week of April 13^th.  The amount you may receive is based on either your filed 2018 or 2019 income tax return.  If you are on Social Security and are not required to file an income tax return, you will still receive your stimulus check. Please go to the following website for more information regarding your CARES Act stimulus checks and any questions you may have: https://www.irs.gov/coronavirus/economic-impact-payments

New Tax Day

The IRS has changed the due date for income taxes from April 15^th to July 15^th for tax year 2019 (calendar year 2020), with no additional penalty or interest to be accrued in this timeframe.  The easiest way to incorporate this change is to replace any due date of April 15^th with July 15^th.  Most states (including Illinois) have also made this change.  

Through these unprecedented times, laws are literally changing by the day and there is a lot of unverified news out there. Please cite a reliable source when inquiring about changes.  As noted above, follow our Twitter account @DandAcpas for new law changes cited by reliable sources.

Lastly, we are here for you.  If you have any questions or need help, please email us at nick@drausandassociates.com or reach out to our office at 224-985-3000.

Taxes are identical to paintings.  If planned out properly, you can rest assured that you maximized your deductions, maybe sold some stock that has been producing a loss for quite some time, and analyzed if you should be maximizing your retirement contributions.  These are just the tip of the iceberg when it comes to tax planning.

We as individuals are considered cash basis taxpayers, meaning, for the most part, you can deduct expenses when you pay them.  Once the new year has started, it’s already too late to go back and spend money for the prior year.

This is why planning is so critical.

If you wait until February, March, or even April of next year to analyze your tax situation, you’ve already missed the bus. Tax planning is even MORE critical if you have a business. Once the year has passed, there is little we can do to maximize your tax deductions.  

For more information on tax planning and if it is a good fit for you, please reach out to Draus and Associates, Inc. at 224-985-3000 or visit our website at www.drausandassociates.com. Fill out our contact form to schedule a complimentary analysis of your prior year’s returns as well as receive a quote for us to work with you!

1. If you switch from CPA firm to CPA firm, or from tax software to tax software, it is important to make sure any losses on stock sales carry over from your prior year.  If you forget this, you could be missing out on a $3,000 deduction every year until the capital loss is exhausted.
2. For 2020 be sure to keep track of your charitable donations.  Even if you take the standard deduction in 2020, you can still get a $300 deduction for donating to charity. 
3. If you are self-employed, be sure to keep track of all money spent on your business, in the “normal course of business.”  You could be missing out on significant tax deductions.  Also, consider funding a SEP IRA to help shield your taxable income.
4. If your main residence is in Cook County, be sure to check your county assessor’s website and verify you are claiming your Homeowner’s Exemption.  If you have missed out on the prior year’s exemptions, you can go back 3 years to claim your exemption.

We hope the above-mentioned tips will help you get through the 2020 filing season!  If you have additional questions, please reach out to Draus and Associates, Inc. at 224-985-3000, or visit our website at www.drausandassociates.com and fill out our contact form to schedule a call with us!