2021 Tax Thresholds

The 2020 U.S. income tax filing season began on Friday 12, 2021. As a result, individuals are now able to submit their 2020 income tax returns and the IRS will consequently start accepting and processing 2020 tax returns. With the start of this year’s tax filing season, we are providing a rundown of the income … Continued

COVID-19 Relief Arrives: Provides stimulus, resolves expense deductibility on PPP & extends expiring tax benefits

The Consolidated Appropriations Act of 2021 (generally referred to as the “COVID-19 Relief Bill” or the “Act”) became law on December 27, 2020 upon President Trump’s signature. Amongst the over 5,500 page spending bill was some long-awaited but anticipated COVID-19 related stimulus relief and an extension of various key income tax provisions for the 2021 … Continued

COVID-19 Relief Bill – Round 2 of PPP Loan

On December 27, 2020, the president signed the Consolidated Appropriations Act of 2021 (referred to as the “COVID-19 Relief Bill”). While there are many key provisions under this omnibus legislation that are designed to provide much-needed relief to small businesses, many of them are in fact legislative efforts to revamp the Paycheck Protection Program (“PPP”). … Continued

Taxation of PPP Loan Forgiveness

In early 2020, many of you took advantage of the Paycheck Protection Program (PPP) that the Coronavirus Aid, Relief and Economic Security (CARES) Act created. As we approach the end of 2020, one very important item to keep in mind are implications of the PPP loan that you may have received. When the U.S. Congress … Continued

President-elect Joe Biden’s Proposed Tax Plan

President-elect Joe Biden has proposed a tax plan that could lead to significant changes in current tax law. While these tax changes would need to be passed through Congress, here are some highlights of what has been proposed. Individuals: Proposals for taxpayers with income over $400,000 include increased tax rates, increased payroll taxes, decreased itemized … Continued

General Tax Strategies for Business Owners

Special 100 Percent Bonus Depreciation—Under the TJCA, businesses are able to deduct 100% of the cost of new OR used business assets purchased and placed in service beginning on Sep. 27, 2017 if they have a useful life of 20 years or less. The 100% deduction is only available through 2022 and is phased down … Continued

General Tax Strategies for Individuals

Timing of Income To the extent that you can smooth income and not jump into a higher bracket, you will pay less tax. Under the current tax rates and brackets, individuals will be in the 37% tax bracket when their income reaches $518,401 (single) / $622,051 (joint). There is an advantage to timing your income … Continued

2020 Year-End Tax Planning Letter

Dear Clients and Friends, This year has brought a host of challenges to both individuals and businesses. As the year closes, we want to highlight a few tax-relief provisions Congress has enacted and suggest planning ideas that might help you lower your tax liability. Coronavirus Aid, Relief, and Economic Security Act (C.A.R.E.S. Act) Tax Items … Continued

Understanding and Maximizing your PPP Loan Forgiveness

The SBA has come out with SOME guidance on the key issues that will determine the amount of loan forgiveness that a company will earn. Note that, while many questions are now answered, several questions are yet to be clarified. May 1, 2020 UPDATE: Today the IRS has issued guidance clarifying the treatment of PPP … Continued

Federal Reserve takes additional actions

“The Federal Reserve on Thursday took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.” The April 9th, 2020 press release from the … Continued

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