2020 Year-End Tax Letter YEAR END TAX PLANNING LETTER IN PDF Dear Clients and Friends: This year has been unlike any other in recent memory. Front and center, the COVID-19 pandemic has touched virtually every aspect of daily living and business activity in 2020. In addition to other financial consequences, the resulting fallout is [...]
For most PPP loan recipients, the 24-week Covered Period ended during the past several weeks, so now it is time to apply for forgiveness with your lender. The forgiveness application used and amount of documentation required will first depend on the amount of your PPP loan. If you received a PPP loan of $50,000 [...]
Many retirement plans are written using Internal Revenue Service (IRS) pre-approved documents. Pre-approved plans must be restated every six years to update their plan documents to reflect recent legislative and regulatory changes since the previous restatement, to maintain their tax qualified status. The six-year restatement period is known as a “cycle”. The last restatement [...]
The Coronavirus Aid, Relief and Economic Security (CARES) Act encourages taxpayers to contribute to worthy charitable causes during this unprecedented health crisis. Accordingly, here are three key tax breaks in the new law for individual and corporate donors in 2020. 1. Deduction for non-itemizers: Normally, you may write off contributions to charitable organizations, subject [...]
If your business is starting to emerge from this year’s slumber, you may be inclined to acquire new equipment or other assets to help generate more income. In addition to the Section 179 allowance, which allows your business to expense up to $1.04 million of the cost of assets placed in service in 2020 (subject [...]
Last week, Governor Ivey announced a $100 million small business grant program for AL small businesses known as Revive Alabama. The program will reimburse small businesses up to a combined $100 million for expenses they have incurred due to operational interruptions caused by the pandemic and related business closures. These grants are being funded with [...]
The CARES Act allows for the deferral of the employer’s social security tax deposits from 3/27/20 through the end of 2020. The deferred amounts must be deposited over the next two years, half of the deferred amount by 12/31/21, and the other half by 12/31/22. Originally, the CARES Act prohibited PPP recipients from exercising this [...]
Do you pick up riders in your car, rent out a spare room in your summer home or perform various other services for customers? If so, you are likely participating in the “gig economy” that is rapidly growing in popularity around the country. For many people, this is a good way to earn extra money [...]
Thanks to recently released guidance after the PPP Flexibility Act was passed, PPP loans are now eligible to be forgiven based on the amount of eligible costs paid or incurred during the 24-week period following PPP loan disbursement (the Covered Period). Alternatively, borrowers who received PPP funding prior to June 5, 2020 may elect to [...]
This past Friday, June 5th, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law. This Act modifies the Paycheck Protection Program in several ways and is summarized below: Borrowers now have a 24-week covered period to use the PPP funds. However, borrowers may elect to keep the original 8-week covered period. Borrowers [...]