Category Archives: Education

Education, Illinois, IRS, Site News, Tips

City of Chicago February 2019 Business Education Workshops

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Each month the City of Chicago offers twice-weekly (Wed & Fri) FREE business education workshops presented by experts in private practice as well as representatives from various city departments. There are quite a few good ones this month — see the list below — and they’re all offered at City Hall (right downtown and near public transit). To register for any of them, email BACPoutreach@cityofchicago.org or call 312.744.2086.

City Inspections – Ask Questions, Get Answers
Wed, February 6, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by the City of Chicago
To operate a successful business in Chicago you need to know what it takes to maintain compliance. Officials from several City departments will provide insight on how to operate safely, stay compliant, help prepare for inspections and highlight the do’s and don’ts of operating a business.

Create Your 2019 Social Media Plan
Fri, February 8, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by Business Bragger
Set goals each quarter for 2019, determine which platforms are best for you to use your business, create a messaging concept and set KPIs to track your results.

New Food Code Workshop
Wed, February 13, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by Gerrin Butler, City of Chicago Department of Public Health
This workshop will provide information for retail food establishments to prepare for the City of Chicago new food code requirements. These requirements are based on the latest science, conform to federal guidelines, state and local laws.

Get Capital for Your Small Business with Kiva and Accion
Fri, February 15, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St – 8th Floor, Room 805
Presented by Kiva and Accion
Hear from Kiva, a nonprofit that provides 0% interest loans of up to $10,000 to small business owners and entrepreneurs, and from Accion, a small business lender with loan ranges of up to $100,000 for small and existing businesses.

How to Open a Concession at O’Hare or Midway Airport
Wed, February 20, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St – 8th Floor, Room 805
Presented by Chicago Department of Aviation – Concessions Department
Are you interested in operating a restaurant or shop at O’Hare or Midway International Airport, but don’t know where to begin? Come and learn about the Request for Proposals (RFP) process, how to operate a business at the airport, and a summary of the Airport Concessions Disadvantaged Business Enterprise (ACDBE) program.

What You Need to Know About Your Business & Taxes
Fri, February 22, 9:30 AM – 11:00 AM
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by the Internal Revenue Service (IRS) and Ladder Up (LU)/Center for Economic Progress (CEP)
Topics include: Are you required to file a tax return? Is your worker an independent contractor or an employee? What will the IRS request during an audit? Are you required to make estimated tax payments? What resources does the IRS have for small business owners?

Customer Service
Wed, February 27, 3:00 PM – 4:30 PM
City Hall, 121 N. LaSalle St – 8th Floor, Room 805
Presented by the Better Business Bureau (BBB)
One element of every successful business is Customer Service. It’s importance should never be underestimated. Nor should it be assumed employees understand it. This presentation by the Better Business Bureau uses the latest research to help businesses understand how customers themselves view customer service, and how a “better business” is defined by customers.

To register for a workshop, email BACPoutreach@cityofchicago.org or call 312.744.2086.

Also, in case you weren’t aware, BACP offers a Business Start-Up Certificate Program, designed to give business owners the essential elements in starting and growing a business. Attend nine workshops at BACP and learn the essentials of business planning, financing, marketing, legal issues, technology and more. Complete the program workshops within six months and earn your certificate, as well as get free advice on your business plan. You can register for the Business Start-Up Certificate Program at any BACP workshop. Learn about the full set of BACP offerings here.

And visit their Business Video Library here.

Source: City of Chicago :: Business Education Workshop Calendar

Education, IRS

IRS Publishes Final Guidance On The 20% QBI Pass-Through Deduction

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WHAT A DAY! My three most trusted sources (Tony Nitti, NATP and Compass Tax Educators) for information on the new 199A QBI deduction have all reported extensively on the newly-released final guidance from the IRS. There is a lot that has changed from the proposed regs, and much that will work differently than all of my tax course instructors (including those at the IRS Tax Forum) anticipated.

First, from the National Association of Tax Professsionals (if you are a practitioner and not yet a member, you owe it to yourself to join — let me know and I’ll get you a referral code):

The IRS has released the long-awaited final regulations concerning the deduction for qualified business income (QBI) under §199A. QBI can affect certain individuals, partnerships, S corporations, trusts and estates. The final regulations are 247-pages long. It is noted that the rules provided in the final regulations as well as the proposed regulations issued in August, can be relied upon for taxable years ending in 2018.

In addition, the IRS released new proposed regulations which provide guidance on the treatment of previously suspended losses that constitute QBI. Also, the regulations provide guidance on the determination deduction for taxpayers that hold interests in regulated investment companies, charitable remainder trusts, and split-interest trusts.

Also released was Rev. Proc. 2019-11 which provides procedures for calculating W-2 wages. The guidance provides three methods that can be used to calculate W-2 wages. The first method (the unmodified Box method) allows for a simplified calculation while the second and third methods (the modified Box 1 method and the tracking wages method) provide greater accuracy. W-2 wages calculated under this revenue procedure are not necessarily the W-2 wages that are properly allocable to QBI and eligible for use in computing the section 199A limitations.

The last item issued was Notice 2019-07 for a §199A safe harbor for rental real estate enterprises. To qualify for treatment as a trade or business under this safe harbor, the rental real estate enterprise must satisfy the requirements of the proposed revenue procedure. If an enterprise fails to satisfy these requirements, the rental real estate enterprise may still be treated as a trade or business for purposes of §199A if the enterprise otherwise meets the definition of trade or business in §1.199A-1(b)(14).

They will be reviewing these newly released documents and will provide members with a summary next week.

Meanwhile, Toni Nitti published a first-stab article on the new guidance, and as usual, has knocked it out of the park: IRS Publishes Final Guidance On The 20% Pass-Through Deduction: Putting It All Together

I love that he gave the IRS so much credit for getting these out there before tax season (honestly, none of us expected that to happen) — during a shutdown and with hampering budget cuts already crippling the agency.

It was less than 13 months ago that Congress dumped 500 pages of sloppy statutory language on the Service in the form of the Tax Cuts and Jobs Act, and somehow, in that span the IRS has managed to provide final regulations on the most controversial, convoluted and complicated provision of the new law: Section 199A, better known as the “20% pass-through deduction.” It required a Herculean effort, particularly when you consider that, you know…most of the government has been on unpaid leave since December 22nd.

His analysis is spot-on, as usual, and you’re doing yourself a favor to devour the entire article word-for-word.

And then we’ve got Tom Gorczynski, a talented EA and tireless educational contributor to colleagues everywhere, who has put together a four-hour webinar on the topic in record time, knowing we’re all eager to learn how this works before tax season opens January 28, rather than after.

I’ve already spent over a month of non-billable time learning the new tax law, so I figure, what’s one more day, right?

Education, IRS

NSAC Co-op Learning Network Webinar 1/15: Current Tax Developments

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Each month the National Society of Accountants for Cooperatives puts on a series of webinars aimed at educating accountants that work within or provide consulting for cooperatives. This Tuesday, January 15th, George Benson — one of the great minds in the world of accounting for co-ops — will be giving a one-hour talk on current tax developments. If you’ve read his articles or heard his talks before, you know you’re in for a treat. So tune in and catch up on tax issues within the cooperative sector.

Source: NSAC Cooperative Learning Network – Current Tax Developments

Education, Illinois

City of Chicago January 2019 Business Education Workshops

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Each month the City of Chicago offers twice-weekly (Wed & Fri) FREE business education workshops presented by experts in private practice as well as representatives from various city departments. There are quite a few good ones this month — see the list below — and this month they’re all offered in Room 805 of City Hall (right downtown and near public transit). To register for any of them, email BACPoutreach@cityofchicago.org or call 312.744.2086.

City Inspections – Ask Questions, Get Answers
Wed, January 9, 3:00pm – 4:30pm
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by the City of Chicago
To operate a successful business in Chicago you need to know what it takes to maintain compliance. Officials from several City departments will provide insight on how to operate safely, stay compliant, help prepare for inspections and highlight the do’s and don’ts of operating a business.

Roadmap to Business Financing
Fri, January 11, 9:30am – 11:00am
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by Fifth Third Bank
In order for businesses to start or grow, financing is often needed. Attend this workshop and you will obtain the pathway to financial success including traditional and non traditional credit sources and how to best prepare for when your company needs capital most.

Business Growth Strategies 101
Wed, January 16, 3:00pm – 4:30pm
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by The Women’s Business Development Center (WBDC)
Are you trying to determine how to grow your business and what area to target for growth? Do you need connections, capital, or additional capacity for your business? Come to the Women’s Business Development Center’s Business Growth Strategies 101 class to begin to identify what part of your business you need to grow, and gain tools that will help fuel your success. Topics that will be covered include finding your target customer, how to prepare for the first time you meet with a banker, and where to begin if you’re thinking about contracting with the government. This workshop will be most meaningful to businesses that have been in business for at least one year.

Rock Your Profile
Fri, January 18, 9:30am – 11:00am
City Hall, 121 N. La Salle St – 8th Floor, Room 805
Presented by Hayden Humphrey, Success Coach and Creative Entrepreneur
Attend this workshop and discuss the ins, outs, tips, and tricks of creating a stellar LinkedIn profile. During this workshop, we will discuss the major profile components, best practices for creating a stellar page, and some behind the scenes advice on navigating the platform. Please come prepared with your profile already created and any questions you have on the platform!

How to Obtain the new Pop-Up User or Pop-Up Host Business License
Wed, January 23, 3:00pm – 4:30pm
City Hall, 121 N. La Salle St – 8th Floor, Room 805
Presented by the City of Chicago Department of Business Affairs & Consumer Protection (BACP) and Department of Public Health (CDPH) – Food Protection
The City’s new Pop-Up User and Pop-Up Host business licenses are now available for short-term general retail, or food, sales entrepreneurs and owners of commercial spaces respectively. Learn about the unique features which allow the User to “pop-up” around the City during the license term, the license application and food protection requirements and process, as well as the benefit provided to existing Shared Kitchen Users and Retail Food license holders. Be ready to become one of the first to obtain these innovative licenses.

How to Write a Business Plan – What you need to know!
Fri, January 25, 9:30am – 11:00am
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
Presented by Donna R. Rockin, Managing Partner at Rockin Enterprises, Inc.
Learn how to create a comprehensive business plan. It’s easier than you think when you understand all the components that get included. You’ll receive a complete list of what to include to demystify the process. Writing a solid business plan is your roadmap to business success.

Nuts and Bolts of Creating a Charitable Organization
Wed, January 30, 3:00pm – 4:30pm
City Hall, 121 N. La Salle St – 8th Floor, Room 805
Presented by the Community Law Project
Attend this workshop to learn about the legal steps to becoming a charitable organization, the differences between a for profit and a nonprofit and provide an overview of the legal process of creating a not for profit corporation, developing a board of directors, explain bylaws, and obtaining recognition of 501c3 income tax exemption for the organization.

To register, email BACPoutreach@cityofchicago.org or call 312.744.2086.

Source: City of Chicago :: Business Education Workshop Calendar

Education, IRS, Tips

Hobby Loss Rules – You Can’t Deduct Your Expenses If You Aren’t In It To Make A Profit

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My favorite tax writer has done it again — Tony Nitti does an amazing job in this article of explaining the nine factors the IRS takes into consideration when deciding whether an activity is a business or a hobby.

Where I see this come up most frequently is when someone loves a product (or service) — some examples I’ve seen are essential oils, diet supplements, a brand of clothing, or even a coaching method — and they realize that if they become a reseller of that product or service, they get deep discounts on the products. Bam! All of a sudden they have a business, right? Wrong. If the reason they enter into the activity is to get a personal discount on personal products, that’s not a business. There are specific guidelines and definitions about what constitutes a business, and that’s not one of them.

However, if they engage in that same activity in a businesslike manner and with an intent to make a profit, then it is possible that it might be treated as a business and therefore the expenses can be deducted against the income.

I’ll quote the master to explain further, since he does such a good job with it; but ultimately what I want you to do if you’re in this area (or have a friend claiming they can deduct everything related to their part-time hobby) is to just read the article. I promise, it’s both entertaining and educational.

Some excerpts:

Many activities are not entered into “with the intent of making a profit.” And when that happens, the activity is a hobby rather than a business.

The ramifications of being categorized as a hobby are severe: while a business can generate a loss, when you’re conducting a hobby, you may only deduct your expenses to the extent of your income. But here’s the rub: these hobby expenses have historically been deducted as other miscellaneous itemized deductions on Schedule A. That makes a hobby classification particularly painful in 2018, because as part of the Tax Cuts and Jobs Act, there are no more “other miscellaneous itemized deductions.” So you get the idea: from 2017 on, if you’re conducting a hobby, and not a business, you have to include all of the income, but can’t deduct any of the expenses.

The case history surrounding the hobby loss rules extends FAR beyond 2018. There are countless decisions covering everything from horse breeding to rental activities to cattle ranching to motocross racing… a common theme would quickly emerge: if you don’t take your business seriously, then the IRS and the courts won’t either. Thus, it is absolutely imperative that you conduct your activity in a businesslike manner, and a good start would be to do the following:

  • have a mission statement,
  • maintain a separate bank account,
  • keep separate, accurate, books and records,
  • use those books and records to manage the business; i.e., if a business line isn’t profitable, perhaps you should consider abandoning it,
  • consult with people in the industry to see what has worked for them,
  • make efforts to cut costs if losses are continuing to mount.

In sum, it’s not enough to keep a QuickBooks account. You have to show that you’re really trying to generate a profit, and that means you have to actually, you know… use the information contained within those books and records to try and turn a loss into a profit.

Source: The Top Tax Court Cases of 2018: Reunited With The Hobby Loss Rules And It Feels So Good

Education, Illinois

Dec 12-21 Chicago Business Education Workshops

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Chicago’s Department of Business Affairs & Consumer Protection (BACP) offers small business workshops every Wednesday and Friday. Workshops vary each month and are conducted by City Officials, experts, and partner business organizations. There are only four left in 2018:

Press Release Basics: Wed, December 12, 3:00pm – 4:30pm
Drawing Web Traffic – Increase Your Audience, Grow Your Business: Fri, December 14, 9:30am – 11:00am
The Basics of Employment Policies, Handbooks & Contracts: Wed, December 19, 3:00pm – 4:30pm
Everything You Need To Know About Business Insurance: Fri, December 21, 9:30am – 11:00am

All workshops are free and open to the public. Workshops are held at BACP’s offices located in Room 805 and Room 1103 at City Hall, 121 N. LaSalle St., in downtown Chicago. The full calendar is here.

To register for a workshop, email BACPoutreach@cityofchicago.org or call 312.744.2086.

Also, in case you weren’t aware, BACP offers a Business Start-Up Certificate Program, designed to give business owners the essential elements in starting and growing a business. Attend nine workshops at BACP and learn the essentials of business planning, financing, marketing, legal issues, technology and more. Complete the program workshops within six months and earn your certificate, as well as get free advice on your business plan. You can register for the Business Start-Up Certificate Program at any BACP workshop. Learn about the full set of BACP offerings here.

And visit their Business Video Library here.

Source: City of Chicago :: Business Education Workshop Calendar

Education

NSAC Cooperative Accounting Webinar Dec 11

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If you’re a client, friend or regular reader of this blog (or all three), you’ll know that I am passionate about education, especially when it comes to accounting for cooperatives. I believe that the cooperative structure is the most viable entity when it comes to achieving balance between social and economic goals. It is conducive to conducting both small- and large-scale businesses while not ignoring the needs of the community, its members, and our broader culture and society.

As such, I’ve encouraged my clients to consider adopting co-op structures and policies, and have encouraged my accounting colleagues to consider broadening the scope of their offerings to include co-op accounting and taxation. In my work with the National Society of Accountants for Cooperatives (NSAC), the National Cooperative Business Association‘s Co-op Professionals Conference (NCBA CPC), and the Cooperative Economy Summit, I’ve tried to build bridges and help mentor and develop the next generation of co-op accountants.

This upcoming course offered by NSAC is a three-hour introduction to accounting for cooperatives (plus a one-hour break for lunch). It covers the basics of what a co-op is, co-op taxation, and co-op GAAP.

Basic A&A Session 1
Date: Tuesday, December 11, 2018
Time: 11:00 AM ET / 10:00 AM CT / 09:00 AM MT / 08:00 AM PT
Approximate Duration: 240 minutes
Presenter(s): Phil Miller, Asst. NSAC Education Director & Meegan Moriary, USDA
Objective: This will be a 3 part CLN covering, What is a Cooperative, Basic Co-op Tax and Basic Co-op Accounting. There will be a 1 hour lunch break from 1-2 PM ET.
Field of Study: .5 tax .5 accounting
Program Level: Basic
CPE Credit: 3 Credit Hours
Delivery Method: Group-Live
No advanced preparation or prerequisites are required for this course.

Course Description
Introduction to Co-ops
This 50-minute course is one of the modules contained in the NSAC Basic Accounting Course, taught at a basic level. The course discussion includes:
What is a Cooperative?
Cooperative History
Cooperatives in the Community
Benefits of Cooperatives

Basic Co-op Taxation I
This 50-minute course is one of the modules contained in the NSAC Basic Accounting Course, taught at a basic level. The course discussion includes:
Tenets of Co-op Taxation
Co-op Taxation History
Applicable Internal Revenue Codes
Patronage Refunds
Section 521
Examples

Co-op GAAP
This 50-minute course is one of the modules contained in the NSAC Basic Accounting Course, taught a basic level. The course discussion includes:
GAAP Applicability
AICPA AcSEC SOP 85-3
AICPA Audit & Accounting Guide
FAS 71 Accounting for Regulation
Co-op GAAP Within FASB Codification

Source: NSAC Cooperative Learning Network – Basic A&A Session 1

Education

End-Of-Year Payroll Considerations Webinar, Nov 28

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Today I came across a free one-hour webinar that I’d love to share with those in my line of work — or with clients who want to better understand how different types of income are reported (for themselves or their partners, employees and contractors).

The webinar is titled, “End of Year Payroll Considerations for Your Clients: W-2, 1099 & K-1 Distributions” and is being offered for free by CPA Academy on November 28, at 11 am Central Time.

Their description:

In this webinar, a TriNet payroll expert will provide information to help attendees guide their clients through the end of the year payroll process, including how to explain the difference between a W2, 1099 and K1 distribution, when each is required, as well as why this information is important to HR compliance and business success. Attendees will leave with more information on how to prepare their clients with the information they need for accurate, compliant payroll reporting and filing.

The difference between these types of income has even more effect on the bottom line where taxes are concerned than ever before, thanks to the new tax laws, and confusion still exists as to what goes where and why. Get a leg up on this before it’s time to issue these documents for clients or to employees.

Source: CPA Academy

Education, Illinois

City of Chicago Pop-Up Business License Workshop Nov 28

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Wed, November 28, 3:00pm – 4:30pm
City Hall, 121 N. LaSalle St. – 8th Floor, Room 805
 

Starting December 1st, the City’s new Pop-Up User and Pop-Up Host business licenses will be available for short-term general retail or food sales, providing new options to entrepreneurs and owners of commercial spaces. Learn about the unique features which allow the User to “pop-up” around the City during the license term, the license application requirements and process, as well as the benefit provided to existing Shared Kitchen Users and Retail Food license holders. Be ready to become one of the first to obtain these innovative licenses.

To register, please email BACPoutreach@cityofchicago.org or call 312.744.2086.

Source: City of Chicago :: Business Education Workshop Calendar

Education, Tips

Help Clients Save Money On Prescription Drugs & Medicare Part D

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When studying to become an accountant, it never occurred to me to take psychology classes; but in fact, much of the work we do involves areas of clients’ lives that are deeply personal. Yet no one ever trains us in divorce consulting, human resources, vehicle purchasing, credit counseling, health insurance brokerage, or, in the case of this recent interesting article I’d like to share: prescription drug coverage.

The author, James Sullivan, is a financial planner who specializes in working with clients suffering from chronic illnesses (and their families). He recently published a piece on how to assist clients when choosing a Medicare Part D prescription coverage plan, and related tips on saving money at the pharmacy. He offers a simple follow-along example that illustrates the main points:

Clients need to consider more than cost when choosing a Part D plan. Before selecting one, they should think about several questions:

Is your prescription drug(s) on the plan’s formulary?

Is your favorite local pharmacy in-network, a preferred pharmacy, or out-of-network?

What is your out-of-pocket cost if you use the local pharmacy versus using mail order?

Are you comfortable using mail order?

Once these questions are answered, the client should consider the plan’s annual deductible, the co-payments and co-insurance, its drug tiers, and any drug restrictions.

I encourage you to read the full article in Journal of Accountancy here, especially for the real-life illustration that offers some great tips.

Source: Help clients save money on prescription drugs