(CARES ACT) – Page 2 – DougFreemanCPA.com

The President’s action to defer payroll taxes: What does it mean for your business?

(CARES ACT), COVID-19, Employees, Payroll Tax, Small Business, Social Security, Tax, U.S. Treasury Department / Douglas Freeman

On August 8, President Trump signed four executive actions, including a Presidential Memorandum to defer the employee’s portion of Social Security taxes for some people. These actions were taken in an effort to offer more relief due to the COVID-19 pandemic. The action only defers the taxes, which means they’ll have to be paid in […]

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The possible tax consequences of PPP loans

(CARES ACT), COVID-19, Income Tax, Internal Revenue Service (IRS), Paycheck Protection Program, Small Business, Small Businesses Administration / Douglas Freeman

If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics. The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial assistance

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Haven’t filed your 2019 business tax return yet? There may be ways to chip away at your bill

(ATI) Adjusted Taxable Income, (CARES ACT), COVID-19, Depreciation, Net Operating Loss (NOL), Qualified Improvement Property (QIP), Small Business, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

The extended federal income tax deadline is coming up fast. As you know, the IRS postponed until July 15 the payment and filing deadlines that otherwise would have fallen on or after April 1, 2020, and before July 15. Retroactive COVID-19 business relief. The Coronavirus Aid, Relief and Economic Security (CARES) Act, which passed earlier

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What qualifies as a “coronavirus-related distribution” from a retirement plan?

(CARES ACT), Coronavirus Aid (CARES Act), COVID-19, Internal Revenue Service (IRS), IRA, Retirement / Douglas Freeman

As you may have heard, the Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. So how do you qualify? In other words, what’s a coronavirus-related distribution? Early distribution basics. In general, if you withdraw money from an IRA or eligible

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PPP Flexibility Act eases rules for borrowers coping with COVID-19

(CARES ACT), Business Expenses, Coronavirus Aid (CARES Act), COVID-19, Employees, Paycheck Protection Program, Payroll & HR Functions, Small Business, Small Businesses Administration / Douglas Freeman

As you may recall, the Small Business Administration (SBA) launched the Paycheck Protection Program (PPP) back in April to help companies reeling from the economic impact of the COVID-19 pandemic. Created under a provision of the Coronavirus Aid, Relief and Economic Security (CARES) Act, the PPP is available to U.S. businesses with fewer than 500

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Student loan interest: Can you deduct it on your tax return?

(CARES ACT), AGI (Adjustable Gross Income), Coronavirus Aid (CARES Act), Deductions, Doucment Retention / Douglas Freeman

The economic impact of the novel coronavirus (COVID-19) is unprecedented and many taxpayers with student loans have been hard hit. The Coronavirus Aid, Relief and Economic Security (CARES) Act contains some assistance to borrowers with federal student loans. Notably, federal loans were automatically placed in an administrative forbearance, which allows borrowers to temporarily stop making

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Fortunate enough to get a PPP loan? Forgiven expenses aren’t deductible

(CARES ACT), Business Expenses, Deductable Expenses, Deductions / Douglas Freeman

The IRS has issued guidance clarifying that certain deductions aren’t allowed if a business has received a Paycheck Protection Program (PPP) loan. Specifically, an expense isn’t deductible if both: The payment of the expense results in forgiveness of a loan made under the PPP, and The income associated with the forgiveness is excluded from gross

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Business charitable contribution rules have changed under the CARES Act

(CARES ACT), C Corporation, Charitable, Contributions, Coronavirus Aid (CARES Act), COVID-19, Deductions, Small Business / Douglas Freeman

In light of the novel coronavirus (COVID-19) pandemic, many businesses are interested in donating to charity. In order to incentivize charitable giving, the Coronavirus Aid, Relief and Economic Security (CARES) Act made some liberalizations to the rules governing charitable deductions. Here are two changes that affect businesses: The limit on charitable deductions for corporations has

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Subchapter V: A silver lining for small businesses mulling bankruptcy

(CARES ACT), COVID-19, Small Business, Small Businesses Administration, The Small Business Reorganization Act / Douglas Freeman

Many small businesses continue to struggle in the wake of the coronavirus (COVID-19) pandemic. Some have already closed their doors and are liquidating assets. Others, however, may have a relatively less onerous option: bankruptcy. Although bankruptcy obviously isn’t an optimal outcome for any small company, there may be a silver lining: A new bankruptcy law

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Do you have tax questions related to COVID-19? Here are some answers

(CARES ACT), COVID-19, Deductions, Employees, Internal Revenue Service (IRS), IRA, Unemployment / Douglas Freeman

The coronavirus (COVID-19) pandemic has affected many Americans’ finances. Here are some answers to questions you may have right now. My employer closed the office and I’m working from home. Can I deduct any of the related expenses? Unfortunately, no. If you’re an employee who telecommutes, there are strict rules that govern whether you can

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