The Small Business Administration (SBA) has released an application on January 8, 2021 and clarify how borrowers can qualify and apply for the second round of Paycheck Protection Program (PPP) loans. First-time and second-draw PPP borrowers are eligible for second round of PPP loans if they meet the eligibility requirements. The second round of loans… Read More »

A QPRT is an irrevocable grantor trust, which allows an individual to take advantage of the gift tax exemption by putting a personal residence, either primary or secondary, into a trust. The grantor determines how long he will retain possession and use of the residence. Once the term is up, ownership is passed onto the beneficiaries. Ultimately,… Read More »

Congress used the 2021 governmental funding legislation as the vehicle to pass much needed COVID-19 relief, and more.  Spanning 5593 pages, the mammoth $2.3 trillion legislation contains some $900 billion COVID relief including most popular PPP loans for small businesses. The COVID-related Tax Relief Act of 2020 (COVIDTRA) and the Taxpayer Certainty and Disaster Tax… Read More »

Congress has passed its spending bill, the “Consolidated Appropriations Act (CAA), 2021” on December 21, 2020 which includes Additional Coronavirus Response and Relief (ACRR). The President Trump has signaled he will sign the bill. ACRR includes a provision that provides $284 billion for paycheck protection program second draw loans.  Eligibility Criteria for Second Draw PPP… Read More »

2020 tax planning strategies have been difficult to advise. The COVID-19 pandemic made 2020 a year of uncertainty. To top it off the election results, on January 5, 2021 for run off senate seats in Georgia, may bring future tax changes. Before the close of the tax year there are effective steps to take now… Read More »

Recently, the IRS released Revenue Ruling 2020-27 and Revenue Procedure 2020-51. The IRS provides guidance regarding the tax deduction of expenses in relation to PPP loan forgiveness. Revenue Ruling 2020-27 Scenarios of Disallowance Two scenarios where disallowance can occur. Taxpayers receive the PPP loan and incur eligible expenses within the proper time period previously mentioned.… Read More »

The Paycheck Protection Program (PPP) loan forgiveness left many unanswered questions. Businesses were left with questions on how the PPP loan forgiveness will affect borrowers’ 2020 tax obligations. The key challenges are the timing of income recognition and deductibility of expenses. Forgiveness Application Timeline Each borrower can choose a covered period of 8 or 24… Read More »

There are possible state tax consequences from working remotely due to COVID-19. Updating an individual’s tax withholding for remote working during the pandemic was unknown by most. Importantly, this can cause tax consequences if you’re in a different state than your withholding. People whom worked from different locations may find that they owe non-resident state… Read More »

Parents with children can help to generate significant tax saving using appropriate tax planning strategies. The upbringing of children can be very expensive from childcare to education costs. A parent’s effective tax planning can help offset high tax bills and save money for the parents. Single Parent Filing as Head of Household Single parent can… Read More »

The IRS has redesigned and streamlined Closing a business page to help business owners and self-employed individuals navigate the process. Business owners can quickly find the information they need to: (i) close a business from a federal tax perspective regardless of business type and (ii) help take care of employees. Information includes what forms to… Read More »