TexasPropane Texas Propane January 2021
Volume 77 No. 1
T H E M AG A Z I N E F O R T H E T E X A S P R O PA N E G A S A S S O C I AT I O N
BUSINESS SMARTS Tax Season Guidance
Can Vaccines Be Required? Tips for Driving at Dusk & Dawn
Maintaining the Legacy You’ve Built
You have worked hard to build your business. Pinnacle Propane is committed to preserving your legacy. Have you considered selling your propane business but concerns for your customers and employees are holding you back? At Pinnacle Propane, our values of Customer Service, Integrity, and Safety emphasize providing the best possible experience for our customers and employees. We focus on providing local service to our customers and empowering our employees via competitive pay, a robust benefits package, and advancement opportunities. As you think about next steps, let us work with you to develop a fair purchase plan and a seamless transition so that you can relax and enjoy the results of your efforts.
Bill Webb Senior Vice President Business Development 936-329-1440
Matt Terry Director Business Development 210-560-5418
Call us today for more information and a confidential assessment of your business.
About Pinnacle Propane: Pinnacle Propane is a leading propane distributor in the U.S. and is part of a global group of
LPG companies owned by SHV Energy, the largest dedicated global LPG distributor. Pinnacle Propaneʼs operations include bulk gas storage and delivery, cylinder filling and distribution, and community gas systems. Learn more at www.pinnaclepropane.com.
TexasPropane January 2021
8408 North IH 35 Austin, TX 78753 512-836-8620 or 800-325-7427 512-834-0758 fax E-mail: info@txpropane.com www.txpropane.com
T H E M AG A Z I N E F O R T H E T E X A S P R O PA N E G A S A S S O C I AT I O N
TPGA staff Bill Van Hoy Executive Director bvanhoy@txpropane.com Jackie Mason Education & Marketing Regulatory & Legislative Affairs jmason@txpropane.com Debbie Simpson Executive Assistant Membership Meeting Planner Publication Coordinator dsimpson@txpropane.com Propane Service Corporation
Debbie Simpson 800-392-0023 dsimpson@txpropane.com
Features Top 25 Small Business Tax Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Perfectly Legitimate Business Expenses You Can’t Deduct. . . . . . . . . . . . . . 12 Top 20 Small Business Tax Mistakes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Biggest Social Security Changes for 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Monthly benefits will increase, but so will tax cap, earnings test limits
Publisher
What Is the Older Workers Benefit Protection Act?. . . . . . . . . . . . . . . . . . . . . 18
Kim Scheberle Account Manager/Managing Editor Sail House Publishing 512-346-0892 kscheberle@austin.rr.com
Can Companies Require Employees Take COVID-19 Vaccine?. . . . . . . . . . . 20
Joanne Pantaze Advertising Sales 512-273-2639 jpantaze@zochnet.com Kiki Pantaze Art Director 512-924-7566 kpantaze@pvco.net
12 Tips for Driving at Dawn and Dusk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 TPGA Holds Online Holiday Auction to Benefit Propane Scholarships. . . . 25
Departments Highlights from Headquarters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 TPGA Board of Directors.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 ProCOT Corner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 People in Propane. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Inside the Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Classified Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Calendar of Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Index to Advertisers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Propane with Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Highlights from Headquarters
Wishing You a Happy New Year! Bill Van Hoy TPGA Executive Director First and foremost, I want to wish you and your family Happy New Year, and bid farewell to the old. I know we are glad that 2020 is in the rearview mirror. This year brings hope that we all will have many blessings this year. But 2021 also brings those “must do” things that we don’t necessarily enjoy – like filing taxes. Texas Propane starts off the year with tips to help your business with this task. Starting on page 6 you will find articles by tax professionals that will help you with the top small business tax
deductions and legitimate business expenses that you cannot deduct, and common tax mistakes. Also, another article will give you the biggest Social Security changes for this year. Monthly benefits are set to increase but so will the tax cap. I am sure that this discussion is going on at your businesses – can you require employees to take the COVID-19 vaccine? Much debate has occurred around this question. We have included an article in this issue that may make things a little clearer for you and your employees. The year-end numbers are in for ProCOT. This issue includes a look back the totals for 2020 for the various programs and propane marketing efforts for the year. Results from the recent online auction to benefit the TPGA Scholarship Foun-
dation are here as well. Thanks to all of you who purchased and donated items. If you didn’t get a chance to participate, you can still donate to the Scholarship Fund. Looking forward to seeing you down the road!
AFFINITY PARTNERS
LEnergy ONE ST R Group
2019-2020 TPGA Board of Directors President: Mark Peterson, Buster Brown Propane, 281-689-3946 President Elect: Josh McAdams, McAdams Propane, 936-598-7444 Secretary: Harris Baker, HBH Systems, 512-587-8347 Treasurer/Finance Chair: Allen Wells, Baygas, 281-332-2630 District 1 Director: David Collett, Gas and Supply, 903-780-2488 District 1 Alternate: Open District 2 Director: Josh McAdams, McAdams Propane, 936-598-7444 District 2 Alternate: Open District 3 Director: Jeremy Gentile, Hill Butane, 409-296-2001 District 3 Alternate: Open District 4 Director: Danny Meyers, Bellville Butane 979-865-2698 District 4 Alternate: Matt Peterson, Buster Brown Propane, 281-689-3946 District 5 Director: Ryan Tudyk, Howdy Propane Services, 361-771-1900 District 5 Alternate: Open District 6 Director: Omar Garcia, Mr. G Propane, 956-581-1063 District 6 Alternate: Open District 7 Director: Steve Smith, Smith Gas, 830-393-2533 District 7 Alternate: Sharon Seal, Bell Hydrogas, 210-533-7103 District 8 Director: Rodney Sladek, Fayetteville Propane, 979-836-7044 District 8 Alternate: Open District 9 Director: Open District 9 Alternate: Brad Quisenberry, Gene Harris Petroleum, 888-336-4474 District 10 Director: Josh Nowlin, McCraw Propane, 9003-583-7481 District 10 Alternate: Chad Gregg, Enderby Gas, 940-482-3225 District 11 Director: Steve Adams, Hardwick LPG, 254-647-3402 District 11 Alternate: Open District 12 Director: Laci Jo Stone, Schneider Distributing, 800-901-9109 District 12 Alternate: Open District 13 Director: Open
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District 13 Alternate: Open District 14 Director: Terry Perez, Perez Propane, 512-318-9780 District 14 Alternate: Open District 15 Director: Don Heinrich, Slaton Gas, 806-828-6501 District 15 Alternate: Open District 16 Director: Open District 16 Alternate: Open Past President: Jack Walzel, Tri-Co Propane, 254-642-3885 Past President: John Walter, Schneider Distributing, 800-901-9109 Past President: Ben Wood, Northwest Propane, 972-247-6121 Past President: John Kelly, Kelly Propane, 940-586-1208 Vice President: Jeremy Gentile, Hill Butane, 409-296-2001 Vice President: Matt Terry, SHV-Pinnacle Propane, 210-560-5418 Vice President: Larry Baty, Cadenhead Servis Gas, 800-722-8654 Sr. Vice President: Don Heinrich, Slaton Gas, 806-828-6501 Sr. Vice President: Bill Collins, Collins Propane, 972-442-1078 Sr. Vice President: Joe Green, Green’s Blue Flame Gas, 713-462-5414 Assoc. Supplier Service Director: Rusty Walker, Marshall Young Insurance, 817-645-9155 Assoc. Supplier Service Alternate: Steve Johnson, Midstream Transportation, 512-787-3777 Assoc. Producer/Marketing Gas Director: Anna May Etheredge, Bishop Energy, 940-665-4672 Assoc. Producer/Marketing Gas Alternate: Jimmie Grant, Martin Gas Sales, 713-851-6155 Assoc. Manufacturer/Distributor Director: Jim Diehl, Squibb Taylor, 214-357-4591 Assoc. Manufacturer/Distributor Alternate: Joe Ezernack, Meeder Equipment, 903-877-9401 Assoc. At Large Director: J.R. Anderson, Gas Equipment Company, 972-406-3817 Assoc. At Large Alternate: John Becraft, Targa Resources, 817-416-7757 Nominating Chair: John Kelly, Kelly Propane 940-586-1208 NPGA Director: Chad Gray, Dixie LP Gas, 254-582-5359
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Top 25 Small Business 2020 Tax Deductions By Barbara Weltman Claiming legitimate deductions is an important income tax strategy for small businesses. By legally writing off certain expenses of operating a company, your business may owe less in taxes — sometimes much less. That’s why the list below of the most common small business tax deductions is so important. 6
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Feature 2. Salaries and Wages
Payments to employees, including salaries, wages, bonuses, commissions, and taxable fringe benefits, are deductible business expenses for the business. Payments to sole proprietors, partners, and LLC members are not wages (i.e., they are not deductible business expenses) because these owners aren’t employees. However, in a C corporation or S corporation, the owner may be designated as an employee and receive a salary, if the owner performs more than minor services.
3. Contract Labor
Use this list of small business tax deductions to prepare your tax return. Also, use this list for future planning. For example, a savvy small business owner will run projections about possible tax write-offs to determine how much to pay in estimated quarterly taxes. Projections also can help you decide whether to push certain expenses into a future year or expend them in the current year to offset high income you anticipate. Our top 25 list is based on IRS data showing the write-offs commonly taken on sole proprietorship returns using a Schedule C. Other types of entities — C corporations, S corporations, partnerships, and limited liability companies (LLC) — also claim similar write-offs although some entities have slightly different rules. The list below is applicable to most small businesses regardless of business structure.
Top Small Business Tax Deductions
To be deductible, the IRS says a business expense must be ordinary (common in your industry or trade, such as software) and necessary (needed to run the business, such as supplies). Expenses must be for business, not personal purposes. The expenses below meet these requirements. Here are the top 25 small business tax deductions:
1. Car and Truck Expenses
Most businesses use a vehicle, such as a car, light truck, or van. Subtract the cost of operating the vehicle for business only if you have records to prove business usage. You can eliminate the need to keep records of specific costs (e.g., gasoline, oil changes) if you rely on the standard mileage rate set by the IRS each year, instead of deducting your actual outlays. Whether you deduct actual costs or use the standard mileage rate per mile driven, you still need to keep a record of how many miles and the purpose. See the 2020 IRS standard mileage rate.
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Many small business owners use freelancers or independent contractors to meet their labor needs. The cost of such contract labor is deductible. Be sure to issue Form 1099-MISC to any such contractor receiving $600 or more from you in the year. If payment is made to the contractor via credit card or PayPal, it’s up to the processor to issue the independent contractors a Form 1099-K, but you may want to send your 1099-MISC for personal protection. Note that for services performed by your independent contractors in 2020 and later, Form 1099-NEC replaces the 1099MISC.
4. Supplies
The cost of items used in a small business (e.g., cleaning supplies for a cleaning service), as well as postage, are fully deductible business expenses. Also, if you opt to use a de minimis safe harbor allowing you to deduct the cost of tangible property (e.g., tablets, vacuum cleaners) rather than depreciating, the items are treated as non-incidental materials and supplies. They are deductible business expenses when purchased or furnished to customers, whichever is later. Another way to claim a write off for business property is through depreciation. Depreciation means deducting on your taxes a certain allowance each year that spreads out the cost for tax write-off purposes. Depreciation is calculated based on a method approved by the IRS for allocating a certain amount of the cost each year over time, such as 10 years. Don’t overlook remaining depreciation allowances leftover from prior years. Check old returns for depreciation opportunities.
5. Depreciation
In some cases you can write off the full cost of certain property you purchase for business use, in the tax year in which you purchased it. This includes the Section 179 deduction, which allows you to deduct the full cost of equipment purchases up to a cer-
Feature tain dollar limit ($1,040,000 in 2020). Certain other limits also apply to Section 179 deductions. In addition, there’s what is called a bonus depreciation allowance, which is another type of write-off in the year costs are incurred. The bonus depreciation limit is 100% for business property acquired and placed in service in 2020.
6. Rent on Business Property
Fully deduct the costs of renting space for your business. Rent can include an office, boutique, storefront, factory, or another type of facility.
7. Utilities
Fully deduct electricity for your facility. Other utility expenses include your mobile phone charges. One limitation: you cannot claim a deduction for the cost of the first landline to your home if you claim a home office deduction and have a landline. Claim a second line as a deductible utility cost.
8. Other Taxes
Certain taxes are deductible on federal income taxes. Generally, you can deduct real estate taxes, personal property taxes. Licenses and regulatory fees also are considered taxes by IRS rules for this purpose. Deductible taxes also consist of employer taxes, including the employer share of FICA, FUTA, and state unemployment taxes. However, self-employed business owners cannot claim a business deduction for half of their self employment tax. Instead, owners should record it as an adjustment to gross income on their personal 1040 return, and use Schedule SE. Owners of pass-through entities cannot treat state and local income taxes as a business write-off. These are personal tax deductibles for taxes. State and local income taxes are deductible only on Schedule A of Form 1040 or 1040-SR (and for 2018 through 2025, are subject to a $10,000 cap for all state and local taxes).
9. Insurance
The costs of your business owner’s insurance policy, malpractice coverage, flood insurance on business premises, cyber liability coverage, and business continuation insurance are all fully deductible business expenses. For health insurance coverage, there are two rules to note. A small business may qualify to claim a tax credit for up to 50% of the premiums paid for employees (a credit is a better tax break than a deduction). Also, the cost of health coverage for self-em-
ployed individuals and more-than-2% S corporation shareholders is not a business deduction. Instead, the insurance premiums are deducted on the owner’s personal return.
10. Repairs
The cost of ordinary repairs and maintenance on business property is fully deductible. On the other hand, costs that add to the property’s value are usually capitalized and recovered through depreciation. However, various safe harbor rules allow for an immediate deduction in any event. Your tax advisor can explain the safe harbor rules.
11. Commissions and Fees
Commissions and fees you pay are fully tax-deductible. You may be required to report them on Form 1099-NEC for payments in 2020 (see item #3). However, commissions paid in connection with buying real estate are not deductible. Realty commissions are added to the basis of the property and are usually recovered through depreciation.
12. Travel
If you or staff members conduct business travel, you’ll find the cost of transportation (e.g., airfare) and lodging fully deductible. You must substantiate a business purpose to claim any travel deduction. Don’t forget incidental travel expenses such as fees for checked baggage or oversized baggage, tips and more. Local commuting costs, on the other hand, usually remain nondeductible. Commuting means getting to and from your place of work. Read more about small business travel tax deductions.
13. Advertising
You may fully deduct ordinary advertising expenses on your tax return, regardless of the advertising media you use. That can include everything from printing business cards to Facebook ad January 2021 •
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Feature campaigns and anything in between. Expenses related to marketing often fall under the category of “advertising expense.”
14. Home Office
It is possible to deduct a portion of expenses for a home office as a business expense. In order to claim this deduction, business owners must use the home regularly and exclusively as your principal place of business, a place to meet or deal with clients or customers, or as a separate structure used in the business. You can deduct direct costs such as painting a home office. You can also deduct indirect costs, in the form of a percentage of rent or mortgage interest and real estate taxes that reflect the percentage of business use of the residence. You may worry that claiming a home office deduction sends a red flag to auditors. Don’t be afraid to take advantage of this deduction if you qualify. Today more than half of all businesses in the U.S. report as home-based. So the IRS won’t view a home office deduction with the same suspicion as in the past. Read more about the home office deduction.
15. Legal and Accounting Fees
You can fully deduct accounting fees. You can also deduct fees you paid for tax return preparation during the calendar year, and not the tax year to which the fees relate. For example, you own an S-corporation that paid fees in March 2021 for the preparation of its 2020 tax return. The fees are deductible on the S-corporation’s 2021 return. The deductibility of legal fees depends on what you use them for. You may fully deduct the costs of a lawyer reviewing a business contract or lease. However, you cannot deduct costs for handling the closing on a property purchase, and then add it to the basis of the property.
16. Meals
Deduct these business expenses only up to 50% (although fully deductible meals do exist). This means in effect that you pay for half of a business lunch, and Uncle Sam pays for the other. You can only claim the deduction if you substantiate the expenses are exclusively for business purposes.
17. Rent on Machinery and Equipment
Fees paid to lease or rent items used in your small business are fully deductible.
18. Interest on Business Debt
Most business taxpayers can deduct interest paid on business loans. For example, interest on a line of credit used in a construction business is deductible. However, companies with average annual gross receipts in the three prior years of more than $26 million in 2020 must limit the percentage of interest that is deductible. Interest on loans by owners to buy their businesses are treated differently. Be sure to distinguish business interest from an owner’s investment interest or passive activity interest, which is not a business deduction. For example, an individual who takes a personal loan to buy shares in an S corporation must allocate the debt proceeds to the business assets. Assuming you use the assets
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in the business, then your interest counts as deductible business interest. If some assets include investments, then you may consider a portion of the interest as investment interest. You can count this as a personal deduction limited to the extent of net investment income. If some assets relate to a passive activity, such as rental realty, the allocable interest counts as passive activity interest subject to the passive activity loss limitation.
19. Employee Benefit Programs and Qualified Retirement Plans
You may deduct the cost of employee benefit programs, such as education assistance and dependent care assistance, as well as contributions to employees’ qualified retirement plan accounts. For self-employed individuals, contributions to your own qualified retirement plan accounts are personal deductions claimed on Form 1040 or 1040-SR.
20. Mortgage Interest
Deduct mortgage interest if your business owns realty. The law caps interest on a personal residence. But no cap exists on the size of business loans on which interest can be claimed.
21. Office Expenses
Do you use flowers, fish tanks, magazine subscriptions and other items to spruce up your office? Office expenses are tax deductible.
22. Carryovers
Your tax activities in prior years sometimes yield write-offs in the present. You often can use past losses and any amounts you were unable to claim fully in a prior year, to cut your tax bill this year. For example, if you previously had a bad year, you may still have a net operating loss carryover that you can use to reduce your current taxable income. Make sure to check prior year returns. Look for any unused amounts to carry over. Examples of carryovers include net operating losses, capital losses, charitable contributions, investment interest, and home office deductions that were previously subject to a taxable income limitation.
23. Bad Debts
Some businesses report on the accrual method of accounting and possess unpaid receivables or other debts. Businesses using the accrual method may take a tax deduction for any amount owed to you that’s partially or wholly worthless. For example, if your business advanced money to an employee, customer or vendor, and you haven’t been repaid, you may be entitled to a bad debt deduction. If it is a business bad debt that becomes partially or wholly worthless, you deduct the amount as an ordinary business deduction.
24. Miscellaneous Business Expenses
Even if an expense doesn’t fit neatly into any of the categories listed above, you may still find it deductible as long as it’s “ordinary and necessary” for the business. Include items you pay out of petty cash. Examples: business and trade magazines you buy
Feature at a newsstand, coffee with a customer, or a taxi ride to a vendor. The key to deducting them is to have documentation. Suggestion: when you can’t obtain a receipt, take a photo with your smartphone (which is imprinted with the date) and maintain a log of miscellaneous expenses.
25. QBI Deduction
While a small business owner may take a personal tax write-off on a Form 1040 or 1040-SR, you base this on income from a pass-through entity. The qualified business income (QBI) deduction lowers the effective tax rate paid on business profits on owners’ personal returns. The deduction makes up 20% of QBI. But you may find limits to restrict or bar eligibility to claim any write-off. Read more: Qualified Income Deduction.
What Else Can I Deduct as a Business Expense?
Below are minor tax deductions that are often overlooked or that apply in limited circumstances. Startup Costs – You can deduct up to $5,000 in startup costs and $5,000 in organizational costs (such as incorporating) incurred in your first year in business — but only if costs, in either case, did not exceed $50,000. Some startup entrepreneurs may elect to treat costs as capital expenditures (added to your investment in the business). But most elect to deduct these costs, up to $5,000. Any remaining amount is then amortized (deducted ratably) over a 15 year period. Bank Fees – Fees you pay to maintain your business checking account, access the ATM, obtain new checks, and other banking fees are fully deductible. Review your bank statements to identify fees. Membership Dues – You can deduct membership dues from professional and business-related organizations. Organizations include chambers of commerce, civic organizations, and trade associations. Franchise and Trademark – If you buy a franchise, trademark, or trade name, you can deduct the amount you pay or incur as a business expense. Certain stipulations apply. Cancellations – Things can go wrong, forcing cancellations of plans. For example, you may have booked a business trip and had to reschedule. The airline rescheduling fee as well as the hotel deposit you lost are deductible. Credit card Convenience Fees – A small business that uses credit cards can deduct convenience fees charged by the card
companies. A convenience fee is any non-standard use of a credit card for which the merchant charges a special fee. This might be a fee for accepting phone orders. Education Expenses – Ordinary and necessary expenses paid for the cost of the education and training of your employees are deductible. You can also deduct the cost of your own education related to your trade or business. Moving expenses – You may be able to deduct moving expenses if you are a sole proprietor or self-employed and had to move more than 50 miles for business. Internet – Generally, you can deduct internet-related expenses, such as domain registration fees and webmaster consulting costs for your company website. Make sure to also check out NON-deductible expenses.
Can I Take the Standard Deduction and Still Deduct Business Expenses?
Yes, small business owners can claim the standard deduction on their personal 1040 returns, and also write off business expenses on Schedule C. Now that the standard deduction amounts are higher, fewer taxpayers are itemizing deductions. Taking the standard deduction on line 9 of your 1040 return is becoming more popular. However, the standard deduction is something completely separate from business expenses which are itemized separately on Schedule C.
Article courtesy of smallbiztrends.com. January 2021 •
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Perfectly Legitimate Business Expenses You Can’t Deduct By Barbara Weltman
You may incur certain costs for your company that make good business sense. Unfortunately, the tax law doesn’t view them all as write-offs. Check out this list of business expenses that remain non-deductible (in whole or in part) these expenses on your 2020 tax return.
Non-Deductible Business Expenses
Additional Medicare taxes. You pay 0.9% additional Medicare tax on net earnings from self-employment or employee wages (if your income is high enough.) You also pay the 3.8% net investment income tax on income from investments. That includes in-
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come from a business in which you don’t participate on a dayto-day basis. Again you pay these if your income is high enough. They remain personal taxes that are nondeductible. Clothing for work (except uniforms). While many people in business want to dress for success, the government doesn’t help to underwrite the cost by permitting a deduction. Only clothing not suitable to street use (e.g., uniforms, hardhats, etc.) can be deducted. Commuting to and from work. No matter how lengthy or difficult it is to get to your business and home again or what mode of transportation you use, you can’t write off the cost. Dues to a country club. Even though golf or tennis may be a great way to meet and network with clients and customers, the dues aren’t deductible. The same is true for social clubs and fitness centers. But if you have a business lunch at your club, half the cost of the meal can be deducted. Exploratory costs. The money you spend to research business opportunities you might go into isn’t deductible. Once you actually start a business, expenses treated as start-up costs can be deducted in the first year within certain limits. Fines and penalties. Government-imposed fines and penalties are usually nondeductible, regardless of the amount. Gifts to business associates, customers, vendors, etc. The deduction is capped at $25 even though it makes good business sense to give a more expensive gift in certain situations. Half of meals. Only 50% is deductible in most cases. There are some exceptions, such as company picnics or break room snacks, when a deduction for the full cost is permissible.
Feature Entertainment costs. No portion of the cost of tickets to the theater or sporting events to entertain clients, customers, vendors, or other business associates is deductible. Interest on tax underpayments for noncorporate taxpayers. Sole proprietors and owners of pass-through entities that pay interest on tax underpayments cannot deduct them. The interest is viewed as personal interest even if it relates to business income. Legal fees to buy property. These fees are added to the cost basis of the property. A portion of the fees (the part allocated to the cost of the building and not the land) may be recovered through depreciation. Interest expense payments. Part of your interest expenses on borrowing if your average annual gross receipts for the three prior years exceeds $26 million. Payments of certain employee expenses. Reimbursements of employees’ commuting costs (e.g., free parking; monthly transit passes) are not deductible. Net operating loss carrybacks. Only carryforwards are allowed (other than for farmers), and they can only be used to offset 80% of taxable income. Excess business losses for noncorporate taxpayers. You must treat these excess business losses as a net operating loss carryover. Hobby losses. Engage in a business without the intention of making a profit? You must then report all income but can’t deduct expenses.
Impact of Non-Deductible Business Expenses
Your “book income,” makes up the net amount on your books and records. It may not match up with your taxable income. You use this number for tax reporting purposes. In other words, your net profits from a financial standpoint may not equal the net profits on your tax return. Reconcile the discrepancy on Schedule M-1 of Form 1120 for C corporations, Form 1120S for S corporations, and Form 1065 for partnerships. Do total gross receipts equal less than $250,000? Do total assets at the end of the year make up less than $250,000 (for an S corporation) or $1 million for a partnership? Then you don’t need to complete the M-1 for the 1120S or 1065. However, you still may wish do so. Because it may answer questions that could be on an IRS examiner’s mind. Large entities — those with $50 million or more in assets — must use Schedule M-3 for this purpose. Those with $10 million to $50 million may use Schedule M-1 instead of Schedule M-3. Sole proprietors and independent contractors file Schedule C of Form 1040 or 1040-SR. This happens regardless of the amount of gross receipts or assets. So they need not have to do any reconciliation. But they should recognize that their financial statement is not necessarily identical to their tax return.
This article is courtesy of smallbiztrends.com
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Top 20 Small Business Tax Mistakes By Barbara Weltman Misreporting Income
Income may be reported to you (and to the IRS) on information returns, such as Form 1099-NEC showing nonemployee compensation for 2020 if you’re an independent contractor or Form 1099-K showing credit card and certain other transactions, regardless of your entity type (e.g., sole proprietorship, C corporation) if you have a certain amount of transactions. IRS computers see what’s been reported to you, so it’s essential that you pick up the information correctly. If the forms are wrong and you can’t get the sender to correct them, report the wrong amount with a proper adjustment, and then attach an explanation to your return so you’re only taxed on the correct amount.
Failing to Report Income
If you barter for business goods and services, the transaction is taxable to you. This is so whether you trade one-on-one or go through a barter exchange. Similarly, if you use virtual currency to pay or get paid for goods and services, you also have to report the transactions appropriately. The IRS is looking closely at virtual currency transactions.
Overreporting Income
If you sell inventory items, you must factor in the cost of goods sold so that you don’t pay tax on the gross receipts from sales. Your income is only the difference between what you get for an item and what it cost you (based on how you value your inventory).
Thinking the Home Office Deduction is an Audit Red Flag
This is a common belief that probably should be dispelled. If you work from home and are eligible for the home office deduction, take it. Find information about the home office deduction from the IRS.
Tax Mistakes from Overlooking Pre-opening Expenses
If this is your first year in business, you may be able to take a deduction for startup costs incurred before you opened your doors. This can be as much as $5,000 in your first year, with excess costs deducted ratably over 15 years. Special rules apply if total startup costs exceed $50,000.
Not Utilizing Retirement Plans
Contributions from qualified plans cut your current tax bill while saving for the future. There are numerous retirement plan choices. For example, if you don’t yet have a plan, you can set up a SEP by the extended due date of your return and contribute to it for the year of that return. What’s more, you may even qualify for a tax credit for starting a plan.
Failing to Keep Basis Records
Only 50% of certain business meals are deductible. Even though wining and dining a customer or paying for your own meals while out of town on business is a legitimate business expense, you can only deduct half of the cost.
Business losses that pass through to partners and S corporation shareholders can be claimed on their personal returns only up to certain basis amounts. For example, an S corporation owner’s loss deduction is limited to basis in stock and loans he/she made to the corporation. Without such records, losses are lost. Similarly, gain on the sale of business property is not the amount of proceeds received; it’s the difference between those proceeds and the basis in the property. Basis is usually the cost of acquiring the property, reduced by depreciation and increased by capital improvements.
Mixing Personal and Business Finances
Overlooking Carryovers
Not having a Mileage Record
Not Obtaining Acknowledgments for Charitable Contributions
Not Applying the Limitation on Deducting Meals
If you don’t separate them, it’s all too easy to overlook a business deduction or erroneously treat personal income as business revenue. Keep a separate business bank account and use a separate business credit card to ensure you keep business income and expenses clear.
If you use your personal vehicle for business driving, you are required to keep certain records. If you don’t, your deduction for business driving is lost. Recordkeeping requirements for this are in IRS Publication 463.
14
Texas Propane • www.txpropane.com
Some business write-offs from prior years may have been limited then but deductible now. Check for carryovers of: net operating losses, capital losses, investment interest, the home office deduction, and the general business credit.
If you donate $250 or more, you must have a written acknowledgment in order to take a deduction. If you didn’t receive one, ask for it before you file your return.
Feature Underpaying Estimated Taxes
If you are required to pay estimated taxes, be sure to factor in all of the taxes besides income tax. This includes self-employment tax if you’re subject to it and additional Medicare taxes (0.9% tax on earned income and 3.8% on net investment income). You usually can’t wait until you file your return to pay your taxes. Underpaying estimated taxes can trigger a tax penalty.
Not Claiming the Qualified Business Income Deduction
This personal deduction (also called the Section 199A deduction) for owners of pass-through entities is based on business income. It’s not a business deduction, but it’s a valuable way to reduce tax liability.
Fudging Worker Classification
Don’t duck employer tax obligations by labeling employees as independent contractors when they’re under your control. The IRS is continually on the lookout for this mistake, and it can cost you dearly.
Failing to File on a Time
Watch the filing due date. If you can’t file on time for any reason, just ask for a filing extension. You don’t have to give a reason for needing more time to complete your return. Just be sure that you then file by the extended due date.
Failing to Attach Required Forms, Schedules, or Election Statements
Your return isn’t complete unless you include all of the paperwork
required. For example, if you rely on an IRS de minimis safe harbor to deduct capital items rather than capitalizing them, you need to attach an election statement referring to the safe harbor to make it valid.
Not Understanding the Differences in Federal and State Tax Rules
Some tax breaks on federal returns are limited or barred for state income tax purposes. For example, a number of states have different rules when it comes to the Section 179 deduction and bonus depreciation.
Not Staying Up on Tax Developments
Changes in the tax law may entitle you to new tax breaks on your current return. They can even entitle you to a refund if you submit an amended return. For example, dozens of tax breaks that expired at the end of 2017 have been retroactively extended throught 2020. Learn which ones may apply to you and whether you want to file for a refund.
Tax Mistakes Because of Not Disclosing Everything to your CPA
Things happen and the IRS may disallow deductions or otherwise change what you owe in taxes. It likely will also impose an accuracyrelated penalty that can only be avoided for reasonable cause. One way to do this is to show you relied on a tax professional, but you must have disclosed all relevant information to this person to have any chance of avoiding the penalty.
This article is courtesy of Smallbiztrends.com.
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January 2021 •
Texas Propane
15
Feature
Biggest Social Security Changes for 2021
Monthly benefits will increase, but so will tax cap, earnings test limits by John Waggoner, AARP
The Social Security Administration (SSA) announced in October that the annual cost-of-living adjustment (COLA) for benefits will be 1.3 percent. That’s a small but important increase for millions of beneficiaries who will see a raise in their monthly payments starting in January. But the benefits increase isn’t the only change coming next year. Here’s a closer
look at some of the biggest changes affecting Social Security recipients in 2021.
ers (CPI-W), a government measurement of prices typically paid for a basket of goods and services, in the third quarter of 2019 and the third quarter of 2020. The modest 1.3 percent increase reflects the relatively low rate of inflation over the past year. In years when there is no change in the index, or if prices have fallen year over year, there is no COLA. For the average retired worker, the monthly Social Security benefit will rise by $20 to $1,543 in January from $1,523 in 2020. For the average retired couple who both collect benefits, the payment will rise by $33 to $2,596, up from $2,563. The average disabled worker will see monthly benefits increase by $16 to $1,277 from $1,261. The maximum Social Security check for an individual retiring at full retirement age will rise to $3,148 a month in 2021 from $3,011 — an increase of $137.
Larger checks for retired, disabled workers
Tax cap goes higher
The 1.3 percent COLA that goes into effect in January was calculated based on the year-over-year rate of inflation. Specifically, it’s the difference between the Consumer Price Index for Urban Wage Earn-
The payroll tax that funds Social Security is set at 12.4 percent on eligible wages. Employees pay 6.2 percent and employers pay the other 6.2 percent (with selfemployed workers paying the entire 12.4 percent). The money paid in by today’s workers goes to cover current benefits, with any excess going into the Social Security trust fund. As it does every year, the maximum amount of earnings subject to the payroll tax is going up. In 2020, the maximum amount of taxable earnings is capped at $137,700; in 2021, that figure climbs to $142,800. Earnings over that amount aren’t subject to Social Security taxes next year.
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Texas Propane • www.txpropane.com
Earnings test limits climb
Social Security was designed with retirees in mind, so those who work and take retirement benefits before their full
Feature retirement age get temporarily reduced benefits. In 2020, beneficiaries under full retirement age have $1 in benefits held back for every $2 they earn from working above $18,240 a year ($1,520 a month). In 2021, that rises to $18,960 a year, or $1,580 a month. In the year you hit full retirement age, the earnings test limit leaps to $50,520 a year ($4,210 a month) as of 2021, up from $48,600 a year ($4,050) in 2020, and SSA holds back $1 for every $3 you earn. The month you reach full retirement age, Social Security stops holding money back because of your work income and there are no longer earnings limits. Social Security effectively returns the money it withheld by increasing your monthly payout when you reach full retirement age. Accruing work credits
In most cases, workers need to accrue 40 work credits to become eligible for Social Security benefits. One work credit is the equivalent of three months’ worth of qualifying work in a year. SSA refers to this as a “quarter of coverage.” The amount of earnings required for a qualifying quarter of coverage is going up to $1,470, from $1,410 in 2020. You can earn up to four work credits in 2021 if you earn at least $5,880. A break on Medicare premiums
Many people who are already collecting Social Security when they sign up for Medicare at age 65 have their Part B premiums automatically deducted from their Social Security monthly payment. As such, a big jump in premiums can wipe out the increase from a COLA. The standard premium for Part B, which covers doctor and outpatient services, is $144.60 a month in 2020. The standard premium for Part B will cost $3.90 more, rising to $148.50 in 2021. The good news for 2021: Under a recent change in law championed by AARP, the new Medicare premium will be less than previously projected, thus preserving part of the COLA for most beneficiaries. Initially, higher emergency Medicare spending due to COVID-19 was expected to lead to very high Medicare premiums in 2021. Most beneficiaries would have seen their COLA wiped out by Part B premium increases had the law not been changed.
SSI recipients also get a raise
Average Monthly Benefits in 2021 (+ difference from 2020) Retired worker: $1,543 (+$20) Retired couple: $2,596 (+$33) Widow or widower: $1,453 (+$19) Widow with two kids: $3,001 (+$39) Disabled worker: $1,277 (+$16) Disabled worker w/ spouse, kids: $2,224 (+$29) SSI for individual: $794 (+$11) SSI for couple: $1,191 (+$16) Source: SSA
Those who receive Supplemental Security Income (SSI), a program administered by SSA to help certain individuals with little or no income to meet basic living needs, will also see a 1.3 percent rise in their monthly benefits. For the average individual, that translates to $11 more a month, to $794 from $783. The average couple gets $16 more a month, to $1,191 from $1,175. SSI is funded by general tax revenue, not Social Security payroll taxes. This article is courtesy of AARP, www.aarp.org.
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January 2021 •
Texas Propane
17
Feature
What Is the Older Workers Benefit Protection Act? The Older Workers Benefit Protection Act (OWBPA) was passed by Congress in 1990. This act amended the Age Discrimination in Employment Act (ADEA) and was meant to defend the benefits of older employees from age discrimination. Despite the amendments made by the OWBPA, employers are still allowed to observe “bona fide employee benefit plans” that have distinctions for age as long as those distinctions are determined by cost. Plans that fall into this category include retirement plans, insurance plans, or pensions. Employers are required to give older workers the same amount of benefit payments as younger workers. However, the OWBPA does allow employers to adjust for benefits that cost more for older workers, such as life insurance. Several practices are made illegal by the OWBPA. The OWBPA prevents em-
18
when cutting staff, or demanding that older workers waive rights and without taking safeguards into consideration. Intricate and employee-friendly provisions in the OWBPA apply when an employer needs to draft a release agreement or severance package for employees over the age of 40. When two or more employees are terminated at the same time, the OWBPA requires employers to provide detailed information about the termination. If a release doesn’t comply with OWBPA rules, it cannot be enforced. Employees that believe they have been discriminated against unlawfully due to their age should consider hiring an attorney. ployers from discriminating in benefits based on age, firing only older workers
Texas Propane • www.txpropane.com
This article is courtesy of UpCounsel, an interactive online service to help businesses find and hire legal help solely based on their preferences.
Business Beat
Can Companies Require Employees Take COVID-19 Vaccine?
(and others) right behind it. Propane marketers have done gymnastics to keep their companies running safely, instituting a variety of measures to keep the wheels turning. And with the cold weather here, the safe delivery of pro-
The current pandemic has reshaped our world, from our work to our home to our leisure. Hope on the horizon arrived in mid-December in the form of a Pfizer vaccine approved for emergency use in the United States, with a Moderna vaccine
pane is paramount. With the roll out of the vaccines comes the question: can private employers require its use for employees? Many organizations are taking up this question. The short answer most are coming up with is: yes, a company can require vaccination, with caveats, but most should consider if that’s wise for their organization. In a recent article for AARP, Dorit Reiss, a law professor who specializes in legal and policy issues as they relate to vaccines, said, “Employment in the United States is generally ‘at will,’ which means that your employer can set working conditions. Certainly, employers can set health and safety work conditions, with a few limits.” The longer answer to the question of a mandate is more complex and allows for exceptions.
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ADA and Religious Exemptions
The National Law Review (natlawreview.com) opines that in the absence of a law or regulation that specifically addresses this issue, “employers considering a mandatory COVID vaccination policy should analyze how mandatory flu vaccination policies have been interpreted.” “Even in a pandemic, the Equal Employment Opportunity Commission (EEOC) has emphasized that an employee may be exempt from a mandatory vaccine if the employee has a disability covered by the Americans with Disabilities Act (ADA) that prevents them from taking the vaccine. An exemption would be considered a reasonable accommodation under the ADA unless there is undue hardship, which the ADA defines as significant difficulty or expense for the employer.” Additionally, the publication adds, an employee may be excused from the vaccine if the shot “would violate his or her sincerely held religious beliefs, practices, or observances.” The publication does make room for the idea that the COVID-19 vaccine be treat-
ed differently than standard vaccinations by the EEOC, but it’s not clear at this time. Requirement vs. Recommendation
While healthcare companies can make a strong case for requiring the vaccine in employees (as they do the flu vaccine), most employers will be making a decision on whether or not to make the vaccine a voluntary (but recommended). “It’s a treacherous area for employers,”
said Jay Rosenlieb, an employment law attorney in an article for AARP. “The reason it’s treacherous for employers is liability that arises from requiring a vaccine where the vaccine goes sideways and creates harm to the employee. That’s going to probably be a worker’s compensation claim against the employer. And, of course, some kind of claim against the vaccine manufacturer. There’s a lot of weighing that goes on here.”
January 2021 •
Texas Propane
21
Fleet Safety
12 Tips for Driving at Dawn and Dusk
Sunrise and sunset are two of the most dangerous times to be behind the wheel because the driver’s view and vision are compromised. It’s due to the fact that the light sky prevents a driver’s eyes from adjusting to the dark roadway, which makes it very challenging to see pedestrians, cyclists and even other vehicles. In fact, experts say 90% of the information we need to drive a vehicle is gathered through the eyes. Many fleet drivers have no choice about driving at dawn or dusk because it’s part of the job. Here is some valuable advice from
AAA and other experts about best practices for safe driving at sunrise and sunset: Polish your headlights: Regularly wiping away dirt will ensure clarity when you need it most. Clean your windshield inside and outside: Dirt, dust and road grime on a windshield can refract light, creating glare. Glare can greatly reduce your ability to see the road at dawn and dusk when your eyes are struggling to cope with the lighting conditions. Drive with your headlights on: This increases your visibility to other drivers.
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Avoid high beams to prevent blinding oncoming traffic. Turn down your dash lights: Bright dash lights may make it easier to read gauges, but they also further detract from your eyes’ ability to see a darkened dusk, dawn or nighttime roadway. Wear sunglasses judiciously: If the sun is directly in your eyes, put on sunglasses. Otherwise leave them off at dawn and dusk—they reduce the already limited light reaching your eyes at these hours. Utilize your sun visor and lane markings: The visor can help to block out the sun. You can also use lane markings as a guide when sun glare is reducing visibility. Get back on track: If you’re blinded by oncoming traffic, look toward the left edge of the road and steer along its path until you can see clearly again. Reduce your speed: This helps compensate for reduced visibility. Slowing your speed will allow more time and space to respond in an emergency. Increase your following distance: The less light there is in the sky, the longer it takes drivers to identify and react to potential dangers. To stay safe, drop farther back from the car ahead of you. Minimize distractions: Driving at dawn and dusk requires your full concentration. Don’t make it more challenging by fiddling with the radio or drinking a coffee while behind the wheel. Be alert to drowsy driving: At dusk, our brains start to release melatonin, a light-sensitive hormone that causes sleepiness. If a car near you seems to be having trouble staying in its lane or maintaining its speed, the driver might be drowsy. What’s more, if you’re feeling drowsy behind the wheel, make frequent stops to get some fresh air and stretch your legs. Choose routes that are not directly in the sun: Fleet drivers may not always have a choice, but if possible, avoid travelling east at dawn and west at dusk. This article was written by Marianne Mathews and is courtesy of www.automotive-fleet.com.
January 2021 •
Texas Propane
23
ProCOT Corner
Propane Council Council of of Texas Texas By By the theNumbers Numbers Propane Highlights2020 2020Texas TexasEducation Education&&Marketing MarketingEfforts Efforts Highlights
2.5M+
Texans reached with Texas Monthly ads during the 2020 heating season
100,000+
farmers learned what propane could do periodically when ProCOT advertised in TX Farm Bureau publication
$18,000
in free grant dollars were awarded in Google Ads to the Council for 2020
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200,000+
Received propane safety information through our Duty to Warn Program
60,000
propane safety tip wall calendars distributed
16,000
100,000
propane consumers on average received the Propane Living newsletter each quarter
35,000
consumers shopping for high-end ranch properties were targeted quarterly in 2020
3,500
consumers follow us builders received our Propane Builder on our Propane Can Do That newsletter each quarter Texas Facebook page Summer'19 thru Summer '20
Texas Propane • www.txpropane.com
Propane News
TPGA Holds Online Holiday Auction to Benefit Propane Scholarships For the last decade, the Texas Propane Gas Association has hosted a silent auction at our annual expo to raise funds for our educational scholarship program that gave nearly $20,000 in scholarships to members’ children and grandchildren this past fall, and over $145,000 since the adoption of the program in 1997.
A thank you to our auction item donors:
COVID-19 threw a wrench in our plans, and TPGA moved to an online format just in time for the holiday season. Thank you to everyone who took part in the online holiday auction! Your support helps drivers, servicemen, managers, front office staff and others working for a propane member company with a little help when comes to paying for college through our competitive scholarship program that launches every spring. Scholarships are good for 2-year community colleges, 4-year universities as well as technical schools. Donations are welcome. TPGA wants to continue our magnitude of giving and we need your help. To make a tax-deductible donation, go to: https:// www.txpropane.com/scholarship and click on the donate button to donate online; or mail a check payable to: TPGA Scholarship Foundation, 8408 N IH 35, Austin, TX 78753
The TPGA Scholarship Foundation also wants to recognize annual large donors that supported the scholarship program year after year
January 2021 •
Texas Propane
25
Inside the Industry
People in Propane
Check Your Mail for a Complimentary 2021 Propane Wall Calendar
Bill McCullough, 71, TPGA board member and owner of Propane Energy in Mexia, TX, passed away on December 1, 2020. Bill received his BBA from Stephen F. Austin in 1971 where he was also a member of the Theta Chi fraternity. Prior to moving back to Mexia and joining his father in the Mexia Butane business, he worked in Houston and College Station for GMAC. He has been the owner of, what is now, Propane Energy for many years. Bill has been actively involved as a civic leader in numerous organizations in Mexia including the City Council, Mayor, board member of Incommons Bank, President of the Mexia Chamber of Commerce, on the board of General Mexia Hospital, Library Board and a District Director for TPGA. His grandchildren were his pride and joy, and he enjoyed spending time on the golf course as well. Our thoughts and prayers go out to the family at this time. Milton John Machac, 67, of Waller, TX passed away on December 11, 2020. Milton spent most of his life being known as “the propane man”. Following high school graduation, he started working at Waller County Butane as a “helper” in 1972. As time would have it, his love for the industry grew and he and his wife Carole purchased Waller County Butane in 1978. He would make deals with his customers on a handshake to help them out when no other companies would. Milton never met a stranger, and together he and Carole grew the company into what it is today with the third generation currently operating the company with Carole. Milton was a member of TPGA and NPGA, the Waller Lions Club, Waller Chamber of Commerce, TSCRA, the Waller FFA and Waller Fire Department. Our thoughts and prayers go out the family at this time. Annie Carolyn (Kainer) Fietsam, 84, of Schulenburg, passed away on December 19, 2020 following a short illness. In 1964, she and her husband John started a business that would later become Tex Propane Company. They became pillars of the Schulenburg community as members of the St. Rose Catholic Church. John also served on the city council, and Annie served on the St. Rose Altar Society, Catholic Daughters of America, St. Rose School, Bishop Forest High School, Schulenburg High Booster Clue and the American Legion Auxiliary. Later in life she made more friends through her activities in Navidad Valley Community Connections. Her infectious laughter will be missed by everyone who knew her. Our thoughts and prayers go out to the family at this time.
Did you know that for nearly 20 years, the Propane Council of Texas has produced a propane safety tip & recipe wall calendar? The 2021 calendar came hot of the presses this past fall and was mailed to current subscribers. But in December, every single full-service Texas propane retail company not currently subscribed was mailed one complimentary copy to their main branch. If you did not receive one, please email info@propanecounciloftexas.org. Get PERC News
Want to stay up to date with all PERC programs and projects? Subscribe to one of PERC’s many newsletters: Go to https://propane.com/newsroom/ subscribe/ and choose from one or more of the following: • PERC Update (Industry & Program News) • Safety Matters (Safety & Training News) • Autogas Refuel (Propane Vehicle News) • The Ag Post (Propane Agriculture News) • The Lift (Propane Forklift News) • The Cut (Propane Mower News) • Build with Propane (Residential Edition) • Build with Propane (Commercial Edition) • Can-do Journal Updates (Propane in Use Spotlights)
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Texas Propane • www.txpropane.com
Inside the Industry 2020 International Roadcheck Results
The overall vehicle out-of-service rate in North America was a combined 20.9% for all level inspections performed, according to the Commercial Vehicle Safety Alliance. More than 50,000 inspections were conducted throughout North America (U.S., Canada, and Mexico). During the three-day enforcement initiative, certified inspectors primarily conducted the 37-step North American Standard Level I inspection. In the 2020 initiative, vehicles without critical inspection item violations received decals. These decals are a visual marker that signifies a vehicle has been inspected by a CVSA-certified inspector and no critical vehicle inspection item violations were detected. Vehicles inspected during the 2020 International Roadcheck included large trucks/combinations, cargo tanks/combinations transporting hazardous material, non-hazmat cargo tanks/combinations and passenger carrier vehicles.
GrillBlazer Recalls Propane Torch Guns
GrillBlazer has recalled 10,000 SuVGun and GrillGun propane torch guns. The problem, according to the U.S. Consumer Product Safety Commission recall alert: “Propane gas can leak from
the GrillBlazer torch, posing a fire hazard to consumers.” GrillBlazer has documented about 260 propane leaks, three of which caused fires. Searing meat is the Su-VGun’s main function, while the GrillGun lights the grill. They were sold online, mainly at GrillBlazer.com. GrillBlazer wants customers to contact them by phone at 888-267-9022, Monday through Friday, 9 a.m. to 6 p.m., Eastern time or by email at support@ grillblazer.com.
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Share consumer safety videos from the Propane Education & Research Council with your customers. Download the following videos from the PERC resource catalog and share on your website, social media, or your email newsletter. • How To Read a Tank Gauge • How To Turn The Tank Off • If You Suspect A Gas Leak • Handling & Transporting Small Cylinders • Getting Your Propane System Inspected • Appliance Conversions Go to https://propane.com/resourcecatalog and search “consumer safety video series”
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Calendar JANUARY 2021
1 TPGA & PSC office closed for New Year’s Day 7 TCEQ Light Duty Propane Vehicle Incentive Deadline 12 Texas Legislative Session begins 28 Propane Technology Series Zero Net Energy Webinar
FEBRUARY
1- 3 2021 NPGA Winter Virtual Board & Committee Meetings 4-5 2021 PACEshow Kansas City, MO 9-11 Virtual NAHB International Builder’s Show 10 Virtual PERC Council Meeting
Index to Advertisers 15 NPGA Scholarship Deadline
BAM Propane Consultants 16
15 Virtual Energy Utility Environment Conference 18-24 Virtual NRECA PowerXchange Annual Meeting 23-24 2021 PERC Safety & Training Virtual Conference 26 TCEQ Propane Medium Duty Vehicle Grant Deadline
MARCH
4-5 2021 Spring Benchmarking Council Meeting Charlotte, NC 7- 9 2021 Spring NPGA TS&S Committee Meeting 10 Texas Propane Magazine New Ads Due
10 Texas Propane Magazine New Ads Due
BLT Tanks 23 Cunningham Gas Products 21 Ferrellgas 27 Fisk Tank Carrier Inc. Outside Back Cover Gas Equipment Company 20 Insurors of Texas 22 Lone Star Energy Group 15 Longhorn Propane 28 Lumbermen’s Insurance Agency 13 Marshall Young Insurance 17 Meeder Equipment Co. 19 Pinnacle Propane Inside Front Cover Propane Service Corporation 26 PT Risk Management 18 Rural Computer Consultants 27 White River Distributors 5
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WOULD YOU LIKE TO ADVERTISE IN TEXAS PROPANE MAGAZINE?
For Advertising, contact: Joanne Pantaze at 512-273-2639 or by email at jpantaze@zochnet.com January 2021 •
Texas Propane
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Propane With Purpose
Van Conversion Company Utilizes Propane for Off Grid Power
A currently Austin-based company, Sportsmobile, has been specializing in the conversion of vans since its inception in El Paso in 1961. What started with basic VW and Ford vans (though considered state-of-the-art at the time), has evolved into sophisticated, luxurious products. Their primary market has always been travel vans, also known as camper vans, Class ‘B’ motorhomes, recreational vehicles (RVs) and van conversions. While the company does offer an all electric package, their standard package includes a propane system. The tank is located under the van’s floor in a protected area. A hinged outside access door is includ-
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Texas Propane • www.txpropane.com
ed for access to the gauge, master shut-off valve and fill connection. If the tank has a 7.9 gallon capacity, it will provide 690,900 BTUs. Propane is required for the stove, furnace, three-way refrigerator, and propane water heater. The stove burner will use 5,000 BTUs per hour, for 138 hours of continuous use. The furnace uses 12,000 BTUs per hour. The furnace will run around 57 hours. A two-stage regulator supplies very low gas pressure inside the Sportsmobile for the appliances and a propane detector is included. For more information, or if you dream about hitting the open road, visit sportsmobile.com.
TexasPropane T H E M AG A Z I N E F O R T H E T E X A S P R O PA N E G A S A S S O C I AT I O N
www.tfda.com 2021 RATE CARD
The Official Publication of the Texas Funeral Directors Association
TexasPropane Texas Propane September 2020
Volume 76 No. 9
T H E M AG A Z I N E F O R T H E T E X A S P R O PA N E G A S A S S O C I AT I O N
Why Propane Retailers Should Use Social Media to Recruit New Hires Legal and Illegal Interview Questions PERC’s Technical School Grant Program Winter Early Fill Materials
ADVERTISING SALES
Joanne Pantaze
Texas Propane is the official publication of the Texas Propane Gas Association and is the only publication geared exclusively toward the Texas propane industry. Each month, Texas Propane reaches over 1,000 decision making propane industry professionals (including every licensed full-service propane retailer) providing an effective platform to market your products. Space is limited. Reserve your spot today. Black and White Rates, Per Issue Size Outside Back Cover Inside Front Cover Inside Back Cover Center Spread Full page 1/2 page 1/3 page 1/4 page
1x $865 $825 $825 $1456 $764 $455 $333 $266
4x $825 $770 $770 $1353 $646 $384 $281 $225
12x $770 $660 $660 $1166 $557 $331 $242 $193
512-273-2639 phone jpantaze@zochnet.com email
Color 4-color can be added to any size ad for an additional 30% of space rate.
Classified Advertising Rates PUBLISHER
Kimberly Scheberle Sail House Publishing 512-346-0892 phone kscheberle@austin.rr.com email 3510 Crowncrest Drive Austin, TX 78759
Standard Classified Advertising is available for $2/word. $50 minimum per insertion. Small logo or photo can be inserted for $10. Display classifieds are available for $30/column inch (3 column grid format).
Discounts TPGA members receive an additional 5% off all listed rates. All rates are net; no advertising agency discounts available.
Closing Dates Space reservations for both display and classified advertising are due a month before the publication date. For example, a reservation for the February issue is due January 1. Artwork is due five working days after the reservation deadline.
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