Due to a conversion of our computer systems, our office will be closed on Monday, June 8th. We will be unable to access email and voicemail during this time. We are scheduled to be back up and running at 8am on Tuesday.
More changes on the horizon for the Paycheck Protection Program. Stay tuned!
House passes bill that would relax PPP forgiveness requirements
www.journalofaccountancy.com
The US House passed a bill that would relax some of the requirements that Paycheck Protection Program fund recipients need to fulfill to qualify for forgiveness from their loans.🇺🇸 In honor of those who gave their lives for our country 🇺🇸
The CARES Act includes favorable changes to the rules for deducting net operating losses (NOLs) to provide businesses with relief from the novel coronavirus (COVID-19) crisis. It permanently eases the taxable income limitation on deductions. For tax years beginning before 2021, the CARES Act removes a taxable income limitation on deductions for prior-year NOLs carried over into those years. So NOL carryovers into tax years beginning before 2021 can be used to fully offset taxable income for those years. These changes may affect prior tax years for which you’ve already filed tax returns. To benefit from the changes, you may need to file an amended tax return. bit.ly/2Z0g2A2
A law providing relief due to the coronavirus (COVID-19) crisis contains a valuable change in the tax rules for improvements to interior parts of nonresidential buildings. You may recall that under the Tax Cuts and Jobs Act, any qualified improvement property (QIP) placed in service after Dec. 31, 2017 wasn’t eligible for 100% bonus depreciation. The cost had to be deducted over 39 years rather than entirely in the year the QIP was placed in service. This was due to a drafting error by Congress. But the new CARES Act now allows most businesses to claim 100% bonus depreciation for QIP as long as requirements are met. The correction is retroactive to QIP placed in service after Dec. 31, 2017. bit.ly/3cyhAW8
As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. But be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be costly. The question of whether a worker is an independent contractor or an employee is a complex one. The IRS and courts have generally ruled that individuals are employees if the businesses they work for have the right to control and direct them in their jobs. Otherwise, they’re generally contractors. Contact us if you’d like to discuss how the rules apply to your business. We can help ensure that none of your workers are misclassified. bit.ly/2WR2RPd
Many businesses are donating to charity in light of the pandemic. In order to encourage giving, the CARES Act made some changes to the rules. Under one change, the limit on charitable deductions for corporations (generally 10% of modified taxable income) doesn’t apply to qualifying contributions made in 2020. Instead, a corporation’s contributions, reduced by other gifts, can be as much as 25% of modified taxable income. No connection between contributions and COVID-19 is required. In another change, for food inventory contributions made in 2020, the deduction limit increases from 15% to 25% of taxable income for C corporations and 15% to 25% of the net aggregate income for other businesses. bit.ly/3dC3ItZ
Wishing a blessed and happy Mother’s Day to all the moms out there! Enjoy your day!
Without a doubt, this is the most non traditional April 15th we’ve ever had! With the deadline extended to July 15th, we continue to plug along, but we couldn’t help but pause for a little celebration on April 15th! We’re so thankful for our staff, their commitment to our firm and our clients and their commitment to each other...whether in person or via Zoom! Happy (NOT) Tax Day, everyone!
Comment on Facebook Without a doubt, ...
That is awesome!!! Is this how the tax season party is being held this year?