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John [Dillard] is an excellent CPA that I worked with in my professional career.

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“John [Dillard] is an excellent CPA that I worked with in my professional career. He has been working with me for the last ten years, helping me incorporate my business entity, and finding trusted advisers/agents to help with my payroll, insurance needs, and yearly corporate/personal tax fillings. I am always amazed by his ability to prepare corporate/personal income tax filing by compiling a trove of records and communicating promptly within a short time.

Besides, he is a very dependable and genuine adviser when navigating complex tax issues or understanding IRS/Tax laws. I highly recommend John to any small business owners or entrepreneurs needing help with accounting needs, corporate or individual tax prep, and filling.”

-Bala Sundaram, Engineering Leader Architect & Developer

“’Genuine Expert’ is the phrase that pops into my mind when I think about John.”

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“’Genuine Expert’ is the phrase that pops into my mind when I think about John. I have known John for many years both personally and professionally and consider him one the best partners that I’ve had the pleasure of working with. During my career I’ve rarely came across a real professional with his integrity and principles. John has earned my highest recommendation!”

–Rob Kemmerer, Sales Manager @ Smart Payroll Solutions

I highly recommend John Dillard for CPA work.

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I highly recommend John Dillard for CPA work. I highly recommend John Dillard for CPA work. I have known John for over 15 years, and got to know him through our church mission trips. I started using John 6 years ago for my own business, after a wrote my business exit plan and realized I needed some tax counsel. He met with my personal financial advisor and I together, to make sure we were all on the same page. Early on John made several astute observations, like recommending that I raise my labor rates that proved to be immensely beneficial. John has done both my corporate and personal tax preparations since then. I continue to be amazed at his quick responses and thoughtful answers to my questions. Admittedly, I must read his responses multiple times to gleam the wisdom he provides. This year he again drilled down into my business financials and recommended that I change the metrics used to measure success. I soon realized he had again provided substantially impactful counsel.

-Eddie Landry @ Landry Luxury Luxury Electronics

PPP Reporting & Forgiveness Applications

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Hopefully you are having a good year in spite of the Pandemic!!!!!!!!

Please be reminded to obtain Forgiveness for a PPP loan you have to request it from the bank where you received the loan from. I understand SBA is still working on some of the Forgiveness criteria and I have not heard of but one bank (a smaller regional) that has actually opened the forgiveness application process.

I bank with Wells Fargo and from last I heard they have not yet begun application process. It is my understanding that until you get a letter confirming monies are forgiven they are still owed.

If you want help with the application just let me know and send me a copy of the initial PPP loan agreement from the bank and a draft of your application and before its submission to the bank. 

It remains my understanding many/most banks will require you to submit your application using their form and they will send you a link to on their web site. Be sure to stay posted with your bank/me/the news on the process.

At present it is my understanding present law will require once any PPP monies are forgiven business owners are not going to be allowed a tax deduction for the PPP monies used for covered expenses when/if they are forgiven. There has been talk in Congress on changing this but at this time best to do your 2020 tax planning on the basis of present tax law.

Thanks and be safe.

Charleston Dawn by John Dillard CPA

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While you’re laying on the beach you want to check out a good Christian fiction romance murder mystery set in the ambience of Charleston South Carolina. John Dillard as author rocks.
Charleston Dawn; romance the way God intended.

Tax Law Changes and Year-end Tax Planning

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Wanted to remind you of the need to do 2018 year-end tax planning so we might avoid surprises as well as keep your tax bill as low as legally possible. Please forward your year-to-date data and a forecast for the rest of 2018 so we might update your tax planning accordingly.
 
Keep in mind this year’s taxes will be very different from prior years as the IRS has doubled the exemption amount making it less likely for taxpayers to be able to itemize, lowered tax rates, did away with exemptions but increased child tax credits, the total deduction on your personal returns for the total of state income and property taxes combined are limited to $10,000.
 
2018 Deduction for Pass Through Entities for Small Business Owners, In President Trumps most recent tax law changes there is a 20% deduction for Pass Through Entities for Small Business Owners. Be sure in addition to the tax rate deductions available to all personal returns your CPA considers this in your 2018 tax planning. The change was added by Congress to “bridge the gap” between the reduction in the greatly reduced corporate rates and the marginally reduced personal rates for America’s Small Business Owners. Plan Early & Plan Often!
 
Effective January 1, 2018 the IRS has dramatically changed the way business owners record and deduct Meals and Entertainment. Entertainment expense is no longer deductible. Business meals remain 50% deductible. Items benefiting employees (not the owners) such as recreational/social activities (i.e., Christmas parties) are deductible at 100%. Accordingly I suggest setting up in your chart of accounts effective 1-1-18 three new charts of accounts: -Entertainment Expense (not deductible).
-Business Meals (50% deductible)
-Recreational/Social Employee Expense (100% deductible)
Georgia Tax Law Changes for Georgia Business Taxpayers & Entrepreneurs. Georgia Governor Nathan Deal signed House Bill 918 reflecting changes in Georgia law to reflect IRS Tax law updates. Effective January 1, 2019 Georgia reduced the personal and corporate tax rates to 5.75%. Georgia did not adopt the 20% qualified business income deduction that was included in the Tax Cuts and Jobs Act/TCJA giving business owners and entrepreneurs a 20% deduction of their K-1 business income on their federal return. This was passed by the IRS for business owners to bridge the gap between reduced corporate tax rates and those for individuals.
Georgia also doubled the standard deduction for all individual taxpayers to $6,000 for married tax payers filing jointly/$3,000 for married taxpayers filing separately and to $4,600 for single tax payers. Stay abreast for more tax news as it affects each and every one of our pockets!

The Time to Prepare for Your Year End Taxes is NOW!

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The Time to Prepare for Your Year End Taxes is NOW!

Don’t let the end of the year sneak up on you. Be sure to start getting your tax data and deductions together NOW so you will be well prepared to take every legal tax deduction available to you under Tax Cuts and Jobs Act of 2017 for which most of the provisions became effective January 1, 2018. Especially if you are amount the tens of millions of small business owners there are a host of changes that WILL affect your tax bill.

“Failing to Prepare is Preparing to Fail” — John Wooden

The New Tax Act Has LOTS in Store for Many Including…

Due Diligence When Buying a Business

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Performing Due Diligence When Buying a Business.

The below is a sample letter that we might receive from a potential client looking to buy a new business and a draft of what my response might be.

Hi, John. I’ve been presented an investment opportunity that I think I’m really interested in. There are a lot of unknowns and I have lots of questions.

The opportunity is a minority ownership in a business. The company is in an industry I’m very familiar with. I believe in the longevity of the business.

Certainly, I would need to know the value of the business before buying in. Could you help me with that? Do I need to ask for tax returns, P&L, etc.?

I would also like to be aware of any tax implications the investment might have. Thank you in advance for your expert opinion.

Below is my response:

Sounds great. I’ll be more than happy to help you walk through it.

I would suggest getting copies of the last two business returns as well as a year-to-date financial statement.

I would also get a feel for the business segments and the number of different clients they have so we can address business concentration risk.

One of the biggest issues with setting up a partnership is having a agreement in advance making sure that if you leave your able to start your own business but also having the flexibility that if they leave that you are a protected from them taking all the clients with them.

Shareholder agreement will need to be examined and thought about in great detail to make sure that they are adequate for all parties. Then we will need to determine the value of the business. Also want to take great care to add value or subtract from that value for minority versus majority ownership interest.

Just a few initial thoughts to get a started towards your long-term business success.

2018 Deduction for Pass Through Entities for Small Business Owners

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2018 Deduction for Pass Through Entities for Small Business Owners

In President Trumps most recent tax law changes there is a 20% deduction for Pass Through Entities for Small Business Owners. Be sure in addition to the tax rate deductions available to all personal returns your CPA considers this in your 2018 tax planning.

The change was added by Congress to “bridge the gap” between the reduction in the greatly reduced corporate rates and the marginally reduced personal rates for America’s Small Business Owners.

Plan Early & Plan Often!

25 years and growing as a Gwinnett Chamber of Commerce member

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It is now 25 years and still growing as a Gwinnett Chamber of Commerce member. The Gwinnett Chamber of Commerce is the greatest place I have ever found in the entire world to promote and grow your business and to work with other business owners and entrepreneurs in the area. Get connected. It’s your best bet.