PE CPA PLLC

National Hispanic Heritage Month is annually observed from September 15 to October 15 in the U.S. for recongizing the contributions and influence of Hispanic Americans to the nation's achievements, culture and history.

Hispanic Heritage Month Discover the fabric which makes up the Hispanic and Latin American community of Houston with us. Hispanic Heritage Month: Sept 15 - Oct 15

The deadline to purchase new QBD products is September 30, 2024. This does not affect individuals with current Desktop subscriptions.

Texans who have disaster related needs due to Hurricane Beryl may be eligible for disaster assistance under FEMA’s Individuals and Households Program.

Brazoria, Chambers, Galveston, Harris, Jackson, Jasper, Jefferson, Liberty, Matagorda, Montgomery, Orange, Polk, San Jacinto, Walker and Wharton counties may be eligible for disaster assistance. Additional counties may be added in the future if requested by the state and warranted by further damage assessments.

Individuals and families in these counties may be eligible to receive Serious Needs Assistance, which is a one-time $750 payment per household for essential items like food, water, baby formula, breast feeding supplies, medication and other emergency supplies.

Eligible survivors may also receive Displacement Assistance, which is money to help with housing needs if you cannot return to your home because of the disaster. The money can be used to stay in a hotel, with family and friends or other options while you look for a more permanent housing solution.

In addition to Serious Needs and Displacement Assistance, eligible survivors may receive money for rental assistance, basic home repairs, personal property losses and other eligible expenses related to Hurricane Beryl.

HOW TO APPLY
Online at https://www.disasterassistance.gov/
Select the link > select "View the Process" button > scroll down and select "Find out if you can apply" button > answer the prompts.

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The IRS will start accepting and processing 2023 federal tax returns on January 29th. PE CPA is here to help you get organized and file when you're ready. Reach out today!

Klein Collins Air Force JROTC partnered last year with Wreaths Across America and continued the tradition this year with sponsoring Section G1 of the Houston National Cemetery. The event was a huge success and such a blessing to honor the families during the Christmas holiday of those men and women who have been laid to rest.

PRISCELLA'S PICK

Using Family Loans to Secure Better Home Loan Interest Rates

Here’s some information on how you can help a family member buy a home by making a loan to them while ensuring that you and the family member benefit from a tax-smart loan structure.

With the current national average interest rates for 30-year and 15-year fixed-rate mortgages at 6.81 percent and 6.13 percent, respectively, family loans can offer a much more attractive alternative. By charging the Applicable Federal Rate (AFR) as interest, you can give the borrower a good deal without giving yourself a tax headache. Click on the following link to lookup the current AFR - https://www.irs.gov/applicable-federal-rates.

Charging at least the AFR for a term loan to a family member allows you to avoid federal income tax and federal gift tax complications.
But if you charge less than the AFR, you may need to navigate some tax complications. Two tax-law exceptions, the $10,000 and $100,000 loopholes, can help you avoid these complications, although they may not be suitable for all home loans.

It is crucial to document the loan with a written promissory note and secure it with the borrower’s home for them to claim deductions for qualified residence interest expenses. Make sure the borrower signs the note and that the note includes details such as the interest rate, a schedule of interest and principal payments, and any security or collateral for the loan.

Applicable Federal Rates | Internal Revenue Service IRS provides various prescribed rates for income tax purposes.

PRISCELLA'S PICK
Is your company in good standing with the State of Texas?

As a registered company in the State of Texas, business owners are required to file an annual Texas Franchise Tax Report. The failure of a taxable entity to file Texas Franchise Tax Reports or pay franchise tax when due can have serious consequences, including loss of the ability of the entity to sue or defend itself in court and liability of directors and officers for the entity’s debts. However, there are ways to mitigate the damage.

Select the following link and enter in your entity’s name - https://mycpa.cpa.state.tx.us/coa/. If it states - FRANCHISE TAX INVOLUNTARILY ENDED….then you have a problem.

You have several options, make it right, close the business, or ignore it…which we do not recommend. If you want to make it right or close the business, reach out to PE CPA and we'll provide you with an up-front quote.

Taxable Entity Search

PRISCELLA'S PICK

ICHRA Unleashed: Transforming Small Business Health Benefits

The individual coverage health reimbursement arrangement (ICHRA) allows businesses of all sizes, from large corporations to small businesses like yours, to reimburse employees for their personally purchased health insurance expenses.

The ICHRA is particularly beneficial for businesses with fewer than 50 employees because they are not obligated to provide health benefits under the Affordable Care Act. But when they do provide coverage, they expose themselves to a $100-per-day penalty for each employee. The ICHRA avoids this penalty.

The ICHRA offers several benefits to the employer, including
• the flexibility to choose the reimbursement limits,
• the ability to offer different plans to different employees based on classifications, and
• the ability to offer a cafeteria plan that allows employees to pay pre-tax for additional insurance coverage above what the ICHRA reimburses.

There are restrictions on who can participate. Employees eligible for an ICHRA are those enrolled in individual exchange coverage, other individual insurance coverage, or Medicare. More-than-2-percent S corporation shareholders, their family members, and Form 1040, Schedule C taxpayers are not eligible to participate in an ICHRA.

PRISCELLA'S PICK

Tax Credits for Electric Vehicles: The Latest from the IRS

The IRS recently issued new guidance on electric vehicles (EVs). There are four ways you can potentially benefit from a federal tax credit for an EV you place in service in 2023 or later:

1. Purchase an EV, and claim the clean vehicle credit.
2. Lease an EV, and benefit from the lessor’s EV discount.
3. Purchase a used EV that qualifies for the used EV tax credit.
4. Purchase an EV for business use, and claim the new commercial clean vehicle tax credit.

The new clean vehicle credit is available through 2032, with a maximum credit of $7,500.

To qualify for the clean vehicle credit, you must meet specific criteria, including income limits, vehicle price caps, and domestic assembly requirements. The credit amount for vehicles delivered on or after April 18, 2023, depends on the vehicle meeting critical minerals sourcing and/or battery components sourcing requirements.

If you can’t find an EV that qualifies for the credit or your income is too high, you can lease an EV from a leasing company that can claim up to a $7,500 commercial clean vehicle tax credit. The leasing company may then pass on all or part of the credit to you through reduced leasing costs.

For used EV purchases, you can earn a credit of up to $4,000, but you must buy the vehicle from a dealer and meet the law’s income caps and other restrictions.

To claim an EV credit, contact PE CPA at [email protected].

PE CPA - A Boutique Style CPA Firm in Texas PE CPA is a boutique-style firm tailoring accounting services and tax strategies to maximize our clients’ benefits. Meticulous attention to detail and our obsession with providing excellent service is what sets our boutique style firm apart from other mass producers. We strive to leave a personal,...

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This young lady turns "40" on Sept 20th. Please wish her a HAPPY BIRTHDAY!