The Internal Revenue Service recently issued the 2021 optional standard mileage rates. These rates, which adjust every year to account for inflation of fuel costs, vehicle cost and maintenance, and insurance rate increases, will once again affect the way a company reimburses their mobile workers.
The U.S. Small Business Administration (SBA) and Treasury has announced that lenders with $1 billion or less in assets will be able to open applications for the next round of Paycheck Protection Program (PPP) funding starting Friday, Jan. 15 at 9 a.m. ET. Both first and second-draw loans will be able to apply at that time. For large lenders, the application opens on Tuesday, Jan. 19 for first and second-draw loans.
Two new interim final rules for the Paycheck Protection Program (PPP) have been released from the Small Business Administration (SBA) and Treasury in response to the changes and second round of funding enacted by the relief portion of the Consolidated Appropriations Act signed at the end of December.
The U.S. House of Representatives and U.S. Senate passed, and the President has signed, the Coronavirus Response & Relief Supplemental Appropriations Act. The agreement comes after weeks of negotiations and two funding extensions to keep Congress open until a bill was passed with a $1.4 trillion government-wide funding plan. The $900 billion coronavirus relief portion includes another round of Paycheck Protection Program (PPP) funding, extended unemployment benefits, and direct payments to taxpayers. Here’s an overview of the key provisions in the bill.
The pandemic created by the novel coronavirus has drastically changed the way we live and work. As more businesses are forced to send their employees home, work-from-home life has become a mainstay especially in knowledge-based jobs (jobs that do not require physical labor), and many of these industries are not going back to the workplace anytime soon. This can create wrinkles for both employers and employees when it comes to their tax situations.
This year has been unique and beyond comparison in many ways, and tax planning is just one of the implications of current events. Both individual and business taxes have the potential to be significantly impacted by the various legislation that has passed like the FFCRA and the CARES Act, the loan programs made available like the PPP and the EIDL, and the unemployment/stimulus programs that touched many Americans.
Wrap up the crazy year that is 2020 on the right foot with your business by reviewing your tax planning and implementing strategies to optimize opportunities. Provisions of the Tax Cuts and Jobs Act (TCJA) are still in play. For those involved in closely held entities, carefully pairing your business strategy with your personal strategy is essential this season.
Reviewing your tax situation each year prior to filing is essential to ensuring your compliance is up to date and opportunities have been optimized. This guide contains strategies to help you save on your taxes if enacted before year-end. For assistance or further detail, contact your Goering & Granatino team member at (913) 396-6225.
On Nov. 18, the IRS and Treasury issued Revenue Ruling 2020-27 which provides long-awaited guidance on the tax treatment of expenses related to Paycheck Protection Program (PPP) loans. The guidance states that the expenses listed in section 1106(b) of the CARES Act that would otherwise be deductible will not be allowed in the taxable year that the expenses were paid or incurred and covered under a PPP loan that is forgiven or expected to be forgiven.
Multi-generational small businesses are the backbone of America, and Great Plains Supply/Pool & Spa Products is an excellent example of how successful family-owned small businesses can still thrive today. Owner Susan Ahn says it’s all about the relationships, and you can hear her passion for her business and her clients when you talk with her.