The IRS has provided guidance on tax relief for deductions for food or beverages from restaurants. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 added a temporary exception to the 50% limit on the amount that businesses may deduct for food or beverages. The temporary exception allows a 100% deduction from January 1,… Read More »

The Internal Revenue Service (IRS) announced yesterday that the deadline for filing 2020 individual income tax return has been extended to May 17, 2021 (from April 15, 2021). Taxpayers have more time to apply the tax relief and changes contained in recent stimulus legislation (American Rescue Plan). We have mentioned below key points for your… Read More »

President Biden signed the American Rescue Plan Act (“ARPA”) of 2021 on March 11, 2021, a massive $1.9 trillion stimulus package intended to address the extraordinary impact of the coronavirus pandemic.  Important highlights are mentioned below: HIGHLIGHTS: Stimulus payments and additional supplemental unemployment benefits to individual taxpayers Aid to states and municipalities, hospitals, and schools… Read More »

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 »