2B — THE OBSERVER & BAKER CITY HERALD
THURSDAY, OCTOBER 1, 2020
BUSINESS & AG LIFE
Understanding home offi ce deductions and professional services
ot everyone qualifi es for
the home offi ce deduction.
According to the Internal
Revenue Service, employees
are not eligible. I recommend
you speak to a CPA to see if any
N
GREG SMITH
SMALL BUSINESS
DEVELOPMENT CENTER
changes might be made as a result
of COVID-19 and the mandatory
shut down many businesses expe-
rienced. Here are tips from the
IRS:
•The home offi ce deduction
Form 8829 is available to home-
owners and renters.
•Deductions including mort-
gage interest, insurance, utilities,
repairs and rent.
•Taxpayers must meet spe-
cifi c requirements to claim home
expenses as a deduction, and
the deductible amount of these
expenses may be limited.
The term “home” for the pur-
pose of this deduction:
•Includes a house, apartment,
condo, mobile home, boat or sim-
ilar property.
•Includes structures on the
property, such as an unattached
garage, studio or greenhouse.
•Does not include any part
of the taxpayer’s property used
exclusively as a hotel, motel or
similar business.
There are two basic require-
ments for the taxpayer’s home to
qualify as a deduction:
•There must be an exclusive
portion of the home for con-
ducting business on a regular
basis. For example, a taxpayer
who regularly and exclusively
uses an extra room to run their
business can take the deduction
only for that room.
•The home must be the tax-
payer’s principle place of busi-
ness. A taxpayer also can meet
this requirement if administrative
or management activities are con-
ducted at the home and there is
no other location to perform these
duties. Someone who conducts
business outside of their home
but also uses their home to con-
duct business may qualify for the
deduction.
•Expenses that relate to a sep-
arate structure will qualify for a
home offi ce deduction if the struc-
ture is used exclusively and regu-
Small manufacturing
fi rms drive Oregon’s
economy statewide
ocal manufacturing
turing voices are heard.
businesses and jobs
As local manufacturers
have experienced a
are pivoting and innovating
resurgence in recent years
to operate in a new envi-
that needs to continue for
ronment — and in some
our state’s livelihood and
cases, switching production
connection to the global
to support critical needs of
economy.
medical
Before
equip-
the pan-
and
JEREMY FIELD ment
demic,
personal
SMALL BUSINESS
the manu-
protective
ADMINISTRATION
facturing
equipment
sector
— it takes
employed 11.6 million
public and private entities
workers in the United
working together for small
States. During the past
manufacturing fi rms to
three years, approximately
succeed.
500,000 manufacturing jobs
The federal government
were added to the economy. is clearing red tape out of
In 2018 alone, 264,000
the way for small manufac-
manufacturing jobs were
turing fi rms by reducing
added, the most created
regulations. During the past
in any single year in more
few years, federal agencies
than two decades.
have issued multiple dereg-
In Oregon, there were
ulatory actions for every
nearly 175,000 manufac-
new signifi cant regulatory
turing jobs. Of those, 48%
action, saving businesses
were employed by small
billions in regulatory costs.
fi rms.
In light of the corona-
While manufacturers
virus pandemic, many fed-
have not been immune to
eral regulations have been
the hit we’ve seen many
temporarily lifted, and
sectors take during 2020
regional advocates from the
due to the pandemic, we’re
SBA Offi ce of Advocacy
already seeing the man-
are talking to businesses
ufacturing sector start to
to explore opportunities to
rebound. In fact, 29,000
permanently clear some of
manufacturing jobs were
these regulations if they
added in August 2020
have been burdensome to
alone.
small fi rms.
This is both encour-
In the span of a week
aging and necessary for
this past spring, the SBA
our region as consumers
rolled out one of the largest
worldwide are increasingly
economic recovery pro-
seeking “Made in the USA” grams the country has ever
products and services. On a seen. Financing programs
macro level during the past
like the Paycheck Protec-
couple decades, U.S.-man-
tion Program, Economic
ufactured goods that are
Injury Disaster Loan pro-
exported to other coun-
gram and traditional SBA
tries have quadrupled. Plus, loan programs have pre-
nearly six in 10 U.S. export
served Oregon jobs and
dollars come from manu-
infused approximately $9.7
facturers, establishing them billion into Oregon small
as a crucial component to
businesses in 2020.
our role in the international
With federal programs,
marketplace.
local government and
In North America spe-
industry and business orga-
cifi cally, the passage of
nizations working together
the U.S.-Mexico-Canada
— combined with the inge-
Agreement earlier this
nuity of Oregon small busi-
year has and will continue
nesses — the manufac-
to drive job creation and
turing industry will prevail
strengthen manufacturing
and ultimately thrive.
in Oregon. And since the
About the Author
USMCA establishes a com-
Jeremy Field is the U.S.
mittee on small business
Small Business Adminis-
issues for the fi rst time in
tration’s regional admin-
any U.S. trade agreement, it istrator for the Pacifi c
will ensure small manufac-
Northwest.
L
larly for the business.
Again, it is important to check
with your tax preparer regarding
this and other deductions.
Know your professional
services
Small business owners use the
terms bookkeepers, accountants
and CPAs interchangeably, but
there are distinct and important
differences. People may balk at
paying for these professional ser-
vices, but the investment is well
worth avoiding getting sideways
with the IRS or Oregon Depart-
ment of Revenue. Do-it-your-
selfers often make errors, espe-
cially with payroll and the timely
submission of reports and pay-
ments. This is something the IRS
and Oregon Department of Rev-
enue take seriously, and the penal-
ties are severe.
Here is a summary of what
duties bookkeepers, accountants
and CPAs typically perform and
the requirements of each.
•Bookkeepers work for a com-
pany to keep track of the fi nances.
They are responsible for accounts
receivable and payable, inventory,
accurate and timely recording of
transactions, monthly, quarterly,
Old Fashioned Hospitality
6 am to 12 am Daily
Take out and Catering is Available.
515 Campbell Street Baker City
541-523-4318
preparation of tax returns.
While it is best to accu-
rately track income and expenses
throughout the year, the begin-
ning of the fourth quarter will
allow you a short window of time
to get your books in order and
implement the services of one or
more of these professionals.
With all the circumstances sur-
rounding COVID-19, business
owners should employ the ser-
vices of a CPA. Make the appoint-
ment as soon as possible to put
the business in the best position
before 2020 tax returns are due.
Delaying not only will this com-
promise the business, but this is
when CPA’s schedules become
full and they may be unable to
accept new clients.
The level to which a business
owner keeps tabs on the compa-
ny’s fi nances is a sure recipe for
either success or failure.
Make that appointment today.
About the Author
Greg Smith is the director
of the Eastern Oregon Univer-
sity Small Business Development
Center, La Grande. If you are
seeking free, confi dential business
advising, call 541-962-1532 or
email eousbdc@gmail.com.
BUSINESS IN BRIEF
Amazon to kick off
holiday shopping
with October Prime
Day
NEW YORK —
Amazon is aiming to kick-
start the holiday shopping
season early this year.
The company is holding
its annual Prime Day over
two days in October this
year, after the pandemic
forced it to postpone the
sales event from July. It’s
the fi rst time Prime Day is
being held in the fall, and
Amazon is positioning it as
a way to get people to start
their holiday shopping.
Even before Amazon’s
announcement Monday,
Sept. 28, major retailers
have said they plan to push
shoppers to start their hol-
iday shopping in October
and offer deals earlier,
hoping to avoid crowds in
their stores in November
and December.
Prime Day, which
will run from Oct. 13 to
Oct. 14 this year, is sure
to put pressure on rivals
to offer deals around the
same time. In past years,
Walmart, Best Buy and
Target have offered their
own online discounts
during Prime Day. In
fact, Target announced on
Monday it was also holding
a two-day sale event on
Oct. 13 and Oct. 14.
Amazon started the
sales event in 2015, and
Prime Day has become one
of Amazon’s biggest shop-
ping days, since it offers
some of its deepest dis-
counts of the year.
Amazon also sees it as a
way to get more people to
sign up for its Prime mem-
bership, since only those
paying $12.99 a month or
$119 a year can access the
deals.
Disney to lay off
28,000 at its parks
in California, Florida
ORLANDO, Fla. —
Squeezed by limits on
attendance at its theme
parks and other restric-
tions due to the pandemic,
The Walt Disney Co.
said Tuesday, Sept. 29, it
planned to lay off 28,000
workers in its parks divi-
sion in California and
Florida.
PICK’N
PATCH
We will be OPENING
on October 2nd!
• At freeway exit
• Fuel
• Restaurant
• Clean bathrooms
• Convenience Store
• Interesting Gifts
• Food to go
• Bus Terminal
• Barber Shop
• Showers
• Shorepower electric
• LPG
• Dump Station
• 4 hotels adjacent
• 1 mile from downtown
and annual reporting and in some
instances, payroll. Bookkeeping
certifi cations and licensing are
available through national orga-
nizations. As an aside, book-
keepers are in high demand and
for someone qualifi ed, is it a prof-
itable business.
•Accountants can prepare
detailed fi nancial statements,
audits of a company’s books and
prepare reports for tax purposes.
It is important to note only CPAs,
tax attorneys and enrolled agents
are able to represent a taxpayer to
the IRS.
•CPAs have a much higher
level of training and expertise.
They have passed required exam-
inations, meet all statutory regula-
tions and obtained licensing. The
national professional association
for CPAs is the American Institute
of Certifi ed Public Accountants.
Small business owners are
busy. Many lack the exper-
tise or simply don’t keep their
fi nancial records up to date and
are unaware of legitimate and
important tax deductions. A busi-
ness owner may have a book-
keeper and/or accountant and then
depend on a CPA for more com-
plex matters, tax planning and
Where: Corner of Booth Lane and
Lower Cove Road
When: Friday and Saturday:
9am-6pm
Sunday: 10am-4pm
Monday-Thursday: By appointment
What you will find:
Small corn maze, several
varieties of pumpkins and gourds,
straw bales, corn stalks.
If you would like to schedule a
school field trip or other event,
please call the number listed below.
Like us on Facebook at
www.facebook.com/
PickNPatchFarm
farmkidsatoregonwireless.net
Please call
541-786-2421
AP Photo/Lionel Cironneau, File
In this April 18, 2011, fi le photo, a killer whale jumps with
its baby at the Marineland aquatic park in southeastern
France. France’s environment minister Barbara Pompili
announced Tuesday, Sept. 29, 2020, a gradual ban in the
coming years on the use of wild animals in traveling cir-
cuses and on keeping dolphins and orcas in captivity.
Two-thirds of the
planned layoffs involve
part-time workers but
they ranged from sala-
ried employees to hourly
workers, Disney offi cials
said.
Disney’s parks closed
last spring as the pan-
demic started spreading in
the U.S. The Florida parks
reopened this summer, but
the California parks have
yet to reopen as the com-
pany awaits guidance from
the state of California.
In a letter to employees,
Josh DÁmaro, chairman
of Disney Parks, Expe-
rience and Product, said
California’s “unwilling-
ness to lift restrictions that
would allow Disneyland
to reopen” exacerbated the
situation for the company.
DÁmaro said his man-
agement team had worked
hard to try to avoid layoffs.
They had cut expenses,
suspended projects and
modifi ed operations but
it wasn’t enough given
limits on the number of
people allowed into the
park because of social dis-
tancing restrictions and
other pandemic-related
measures, he said.
Disney offi cials said the
company would provide
severance packages for the
employees, where appro-
priate, and also offer other
services to help workers
with job placement.
Disney offi cials didn’t
offer a breakdown of the
layoffs between the Florida
and California operations.
Walt Disney World in
Florida has around 77,000
employees, while the Disn-
eyland Resort in California
has more than 30,000
workers.
Author awards $500
grants to thousands
of teachers
NEW YORK — Thou-
sands of school teachers
will receive $500 grants
from author James Pat-
terson to help students
build reading skills, espe-
cially as schools struggle
to adapt to the coronavirus
pandemic.
“Whether students are
learning virtually at home
or in the classroom, the
importance of keeping
them reading cannot be
underscored enough,” Pat-
terson said in a statement
Tuesday, Sept. 29.
The grant program is
administered by Patterson
and by Scholastic Book
Clubs, which will provide
teachers 500 club points to
Join us for a special fundraising event...
go with the $500 from Pat-
terson. Out of more than
100,000 applicants, 5,000
teachers will receive grants
and club points.
Tuesday’s announce-
ment marks the sixth
installment in the Patterson
Partnership for building
home and school libraries.
Patterson, one of the
world’s best-selling novel-
ists, has given more than
$11 million to teachers,
along with millions he
has given to bookstores,
libraries and literacy
organizations.
France to ban use
of wild animals in
circuses, marine
parks
PARIS — France’s
environment minister
has announced a gradual
ban on using wild ani-
mals in traveling circuses,
on keeping dolphins and
killer whales in captivity
in marine parks and on
raising mink on fur farms.
Barbara Pompili,
France’s minister of eco-
logical transition, said in a
news conference Tuesday,
Sept. 29, that bears, tigers,
lions, elephants and other
wild animals won’t be
allowed any more in trav-
eling circuses “in the
coming years.”
In addition, starting
immediately, France’s
three marine parks won’t
be able to bring in nor
breed dolphins and killer
whales any more, she said.
“It is time to open a new
era in our relationship with
these (wild) animals,” she
said, arguing that animal
welfare is a priority.
Pompili said the mea-
sures will also bring an end
to mink farming, where
animals are raised for their
fur, within the next fi ve
years.
— Associated Press