PPP and COVID-19 Tax Updates and Information

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PPP Forgiveness Guide

PPP Loan Forgiveness — A Step-by-Step Guide

Posted on June 26th, 2020

On 6/22/20 the SBA issue a new set of Interim Finals Rules (one of many) that helped to clarify some issues but not all. Here is what you need to know:

As of now, you have 8 weeks (56 days) from date money hits your bank account to spend the funds (Covered Period). But you can elect to start the 8 weeks for the payroll costs from the first payroll period date after you receive the funds (Alternative Payroll Covered Period (APCP)) instead. For those that receive funds after 6/5, you automatically have 24 weeks to spend the funds. Those that received the funds pre 6/5 can elect to use the 24 weeks also. Read More…

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loan forgiveness under ppp

Loan Forgiveness Under the Paycheck Protection Plan

Posted on June 18th, 2020

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law March 27, many small business owners were able to apply for – and receive – a loan of up to $10 million under the Paycheck Protection Program (PPP). If the loan proceeds are used as specified, business owners may apply to have the loan forgiven.

Here’s what you should know about loan forgiveness under the PPP: Read More…

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Ask Bob: Should I Hire an Accountant or Do Taxes Myself? (7 FAQs)

Posted on June 9th, 2020

The big question: Is hiring an accountant to do my tax return really worth it?

At this time of year, we’re all bombarded with ads promoting the simplicity and savings of using online tax software or walk-in tax prep centers. For people with a simple W2 form and maybe an investment account or two, these services will get the job done.

However, there are many situations where hiring an accountant can save you thousands of dollars, help you avoid an audit and fines, and set you up for an even more profitable year ahead. The question is: which category do you fall into?

In our latest edition of “Ask Bob,” we answer frequently asked questions about whether it’s really necessary to hire an accountant, or if you can go it alone. Here’s what Bob had to say… Read More…

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4 Cash Management Tips for Small Businesses

Posted on June 4th, 2020

Cash is the lifeblood of any small business. Here are some tips to help your business maintain a sufficient cash flow to meet its financial goals and run efficiently: Read More…

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pass on wealth to heirs

Pass on Wealth to Heirs Using These Strategies

Posted on June 3rd, 2020

Individuals with significant assets who want to transfer wealth to heirs tax-free, as well as minimize estate taxes, should take advantage of proven tax strategies such as gifting and direct payments to educational institutions; however low-interest rates and a volatile stock market are creating additional opportunities. Let’s take a look at some of the strategies available: Read More…

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Flexibility for Taxpayer Elections in Cafeteria Plans

Posted on June 3rd, 2020

Temporary changes to Section 125 cafeteria plans due to the coronavirus pandemic allow flexibility for taxpayers participating in cafeteria plans. These changes include extending the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes. Read More…

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preparing an effective business plan

How to Prepare an Effective Business Plan

Posted on June 2nd, 2020

A business plan is a valuable tool whether you’re seeking additional financing for an existing business, starting a new company, or analyzing a new market. Think of it as your blueprint for success. Not only will it clarify your business vision and goals, but it will also force you to gain a thorough understanding of how resources (financial and human) will be used to carry out that vision and goals. Read More…

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10 Facts About Capital Gains and Losses

Posted on June 2nd, 2020

When you sell a capital asset such as a home, household furnishings, and stocks and bonds held in a personal account, the difference between the amount you paid for the asset and its sales price is known as a capital gain or capital loss. Here are ten facts you should know about how gains and losses can affect your federal income tax return. Read More…

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tax return errors

Avoid These 8 Common Errors When Filing a Tax Return

Posted on June 1st, 2020

When filing a tax return, mistakes such as the common errors listed below can result in a processing delay – and increase the amount of time it takes to receive a tax refund. Using a reputable tax preparer such as a certified public accountant, enrolled agent or another knowledgeable tax professional is usually the best way to avoid this. With this in mind, here are eight of the most common errors taxpayers make when filing their returns: Read More…

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Estates and Trusts: Guidance for Itemizing Deductions

Posted on June 1st, 2020

The Tax Cuts and Jobs Act (TCJA) prohibits individual taxpayers from claiming miscellaneous itemized deductions for any taxable year beginning after December 31, 2017, and before January 1, 2026. However, proposed guidance has recently been issued clarifying that certain deductions of estates and non-grantor trusts are not miscellaneous itemized deductions and are allowable in figuring adjusted gross income, specifically: Read More…

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