Government Clarifies PPP Loan Forgiveness for the Self-Employed We now have both the new clarity and an easy road to Paycheck Protection Program (PPP) loan forgiveness for the self-employed with no employees. New Easy Road to 100 Percent Forgiveness Say thanks to the Paycheck Protection Program Flexibility Act of 2020. This new law creates a 24-week period for you to spend your PPP loan proceeds. If you obtained your loan proceeds before June 5, you can elect to use the eight-week period to … [Read more...] about Tax-saving Tips
Tax-Saving Tips COVID-19 Edition
Tax-Saving Tips COVID-19 Tax-Saving Tips COVID-19: New SBA Loans for Small Businesses The COVID-19 pandemic has upended all aspects of life around the world, including the world of business here in the U.S. If your business is struggling, you may be able to get some help from the federal Small Business Administration (SBA), which is authorized to provide loans to small businesses on an as-needed basis. There are two types of relief you can apply for—read on. Economic Injury Disaster … [Read more...] about Tax-Saving Tips COVID-19 Edition
Coronavirus (COVID-19) Legislation— Individuals
[siteorigin_widget class="WP_Widget_Media_Image"][/siteorigin_widget] Coronavirus (COVID-19) Legislation—Individuals Recent legislation, such as the Families First Coronavirus Response Act and the Coronavirus, Aid, Relief, and Economic Security (CARES) Act has provided some financial and tax relief for certain taxpayers. The following is a summary of some of the provisions. Filing and Payment Deadline The April 15, 2020, due date for any person (individual, trust, estate, or unincorporated … [Read more...] about Coronavirus (COVID-19) Legislation— Individuals
Tips & Strategies to Navigate the Uncertainty Ahead / CARES Act Update
The events surrounding the COVID-19 pandemic are impacting our daily lives and businesses in a profound way. Join us as I share key points, tips & strategies to employ RIGHT NOW to help you navigate your business through the uncertainty of the weeks and months ahead. Tips & Strategies to Navigate the Uncertainty Ahead / CARES Act Update from John A. Sanchez & Company on Vimeo. … [Read more...] about Tips & Strategies to Navigate the Uncertainty Ahead / CARES Act Update
Tax update: Tax Filing Deadline extended to July 15, 2020
On March 20, Treasury Secretary Mnuchin announced that the tax filing deadline has been extended to July 15, 2020. According to Mnuchin, “All taxpayers and businesses will have this additional time to file and make payments without interest or penalties.” [siteorigin_widget class="SiteOrigin_Widget_Image_Widget"][/siteorigin_widget] Note that this is a follow-up announcement to Notice 2020-17 that had previously only extended the payment deadline until July 15, 2020. As of Sunday the 22nd, … [Read more...] about Tax update: Tax Filing Deadline extended to July 15, 2020
Tax-Saving Tips
Does No 1099 Mean No Deduction for You? Imagine this: you didn’t issue Form 1099s to your contractors. Now, the IRS is auditing your tax return, and the auditor claims you lose your deductions because you didn’t issue the Form 1099s. Is this correct? No. IRS auditors often make this claim, but they are incorrect. There is no provision in the federal tax law that denies you a deduction for labor expenses simply because you didn’t file the required Form 1099s. But the tax court has stated … [Read more...] about Tax-Saving Tips
Does a cash overdraft kill tax deductions?
[siteorigin_widget class="WP_Widget_Media_Image"][/siteorigin_widget] Here is a hypothetical (although common) scenario: I have a cash-basis calendar-year client who on December 31, 2018, wrote and mailed $5,000 in checks for 2018 expenses. With this activity, his books showed a $9,000 negative cash book balance. His December 31, 2018, bank statement shows a positive balance of $15,000. Outstanding checks totaling $24,000 make up the difference. The client has $50,000 available in a line … [Read more...] about Does a cash overdraft kill tax deductions?
Tax Cuts and Jobs Act Employers
The Tax Cuts and Jobs Act is the biggest federal tax law change in over 30 years. Below are some significant changes affecting employers. Note: Except where noted, the changes are effective for tax years 2018– 2025. Certain Fringe Benefits Modified Prior Law. Generally, a deduction has been allowed for an activity (or facility used in connection with the activity) considered to be entertainment, amusement, or recreation that was directly related to the active conduct of an employer’s business … [Read more...] about Tax Cuts and Jobs Act Employers
Tax Cuts and Jobs Act Excess Business Loss and Net Operating Loss (NOL)
The Tax Cuts and Jobs Act is the biggest federal tax law change in over 30 years. Below are significant changes affecting excess business losses and net operating losses (NOLs) for noncorporate taxpayers. Note: Except where noted, the changes are effective for tax years 2018–2025. Excess Business Loss Limitation Your overall business losses may be limited as you cannot deduct an excess business loss in the current year. An excess business loss is the amount by which your total deductions from … [Read more...] about Tax Cuts and Jobs Act Excess Business Loss and Net Operating Loss (NOL)
Tax Cuts and Jobs Act Qualified Business Income Deduction
The Tax Cuts and Jobs Act is the biggest federal tax law change in over 30 years. Below is a significant change affecting qualified business income from a partnership, S corporation, LLC, or sole proprietorship. Note: Except where noted, the change is effective for tax years 2018–2025. Qualified Business Income (QBI) Deduction An individual taxpayer generally may deduct 20% of qualified business income from a partnership, S corporation, LLC, or sole proprietorship. In the case of a partnership … [Read more...] about Tax Cuts and Jobs Act Qualified Business Income Deduction