Address: Boca Accounting, LLC
190 NW Spanish River Blvd, Suite 200

Beware the “K”

If you do any selling on the internet, even your old junk and the amounts sold exceed $ 600 in 2022, you will be getting a Form 1099-K from Ebay, Poshmark, Esty, etc. or the selling agent. This was a $ 20,000 limitation in prior years, which only affected real business sellers but now will catch the casual sellers also. So, if you are selling above that level, be prepared. You will have to file a Schedule C, report that income and provide information of costs incurred for that selling.  (editor’s note: This has been postponed one year)

New Solar Credits 

The recent “Inflation Reduction” act added and expanded tax credits for electric vehicles, wind and solar power devices and home energy improvements like windows and doors. Businesses should look at the solar panel/system credits since they will get both depreciation and a 30% Tax Credit starting in 2023. Utility prices will be going up, if for no other reason they will be building to accommodate electric vehicle expansion. Solar with battery backup might be an alternative in Florida to generators during storm seasons. Used electric vehicles will now also be allowed a credit, although limited. If you are contemplating an EV, let us know and we’ll give the limitations and credits available. 

Onvio Portal

In January all 1040 clients not currently using our secured portal system will be receiving an invitation to set up an account In Onvio and will have the option of filling out their organizers electronically. We have been expanding this application all of 2022 and will be making it mandatory for document swapping and ultimately electronic signatures and integrated billing. 

Crypto 

If you trade or own cryptocurrency, you must report it on your 1040. There is a big, page 1 question of yes or no, and most of the brokers will be giving you a 1099B for sales. Don’t ignore these. They are a hot button issue with IRS and the government in general. 

Early Birds and Extensions 

If you are an early bird, great. Provide all your documents as soon as they are available so we can file prior to April 15th. If you are awaiting K-1s or business returns, please wait until after they arrive to share your documents. Onvio will allow piecemeal document uploads, but we will not start your return until all documents are ready. It takes twice as much time to start, wait and they start the returns which are reflected in the fees. If you give us a large “mess” on April 1st, it will go on extension. If you owe money after April 15th, even with an extension, you will pay ½ % per month penalty, and interest at 5% (as of this writing) annualized. We encourage extensions on the more complicated returns since may time the brokers issue corrections that are material and require amendments or delays in processing. Also keep in mind our staff (and the partners) are much sharper early In the season and after May 15thwhich leads to a better product generally. If we gave you estimated tax payments for 2022, please make them as they may give you “safe harbor” from penalties or significantly reduce the penalties accruing after April 15th. 

We wish you all a happy and healthy holiday season and best wishes for 2023. 

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