The White House has proposed a plan that will essentially double the capital gains tax for investors making over $1,000,000 to fund trillion dollar initiatives like the American Families Plan, American Jobs Plan, and The Infrastructure Investment Act. The goal of the Administration is to eliminate the loopholes that allow taxpayers making $1 million a
Make the Most of Your Mobility–Related Tax Breaks
The new 2022 car and truck models will be in dealership showrooms soon. If you’re in the market for a vehicle for your self-employed business, don’t forget to factor taxes into the equation. You may deduct vehicle expenses in one of two ways. Actual expense method, which allows you to deduct your actual expenses based
NY State Pass-Through Entity Tax A S.A.L.T. Cap Workaround
The Tax Cuts and Jobs Act, limited taxpayers’ itemized deduction for state and local income and property taxes (“SALT”) to $10,000 per tax year. As residents and business became outraged, many states tried to create workarounds so residents could deduct state and local taxes in excess of the federal itemized deduction limit. Due to a
SBA Updates Guidance and Increases Cap for Economic Injury Disaster Loans
The most recent good news from the SBA is the increasing of the cap for COVID Economic Injury Disaster Loans from $500,000 to $2 million starting October 8th. The SBA, is targeting hard-hit sectors of the economy. There will be an exclusive 30-day window for approving and disbursing funds for loans of $500,000 or less.
IRS Has S-Corps Under Scrutiny
For years, the IRS has been gunning for a fight with S-Corporations over reasonable compensation. Their guns are now loaded, so get ready, because since 2000 when the IRS established its authority to reclassify distributions as wages and reinforced the employment status of shareholders as employees, it has had S-corps in its sights. Things got
Window Of Opportunity Closing For Opportunity Zones
The possibility of higher capital gains rates has fueled interest by investors in Qualified Opportunity Zone funds. Investment is incentivized by a deferral of capital gains that otherwise would be reported in the year they were realized. With the tax recognition deadline of December 31, 2026, still in place, taxpayers who wish to invest unrecognized
PPP Loan Forgiveness Deadlines Ahead
Paycheck Protection Program loan forgiveness deadlines are on the horizon. Borrowers must submit forgiveness applications to lenders 10 months from the end of their covered periods, so borrowers receiving PPP loans in early- to mid-April 2020 have due dates starting in July 2021. If a loan forgiveness application is received by the due date, payments
Reality Check for Real Estate Post-COVID
Thanks to COVID-19 vaccines, business is now bouncing back but many challenges will likely linger for real estate. COVID made financial reporting and accounting much more difficult for owners of real estate due to closures, tenants who stopped paying rent, rule changes for lease accounting, and the office or retail space that went unused. When preparing
$28 Billion Restaurant Revitalization Fund Provides Support for Hospitality in 2021
The American Rescue Plan Act allocated an additional $7.25 Billion for PPP forgivable loans for small businesses and earmarked targeted grants to those hardest hit by pandemic-related economic slowdowns. Restaurants and bars are among the businesses most hurt by the stay-at-home and social-distancing restrictions imposed during the pandemic, and now have a “seat at the
Clarifying New Stark Law Changes and Modifications for 2021
On November 20, 2020, the Centers for Medicare & Medicaid Services (CMS) issued a final rule to modernize and clarify the Stark Law. This reflects the most recent efforts by the Department of Health and Human Services (HHS) to establish exceptions and safe harbors to appropriately tailor the reach of the Stark Law’s strict liability-based