If your business has obtained a PPP loan, you will presumably soon be applying to have some or all of that loan forgiven pursuant to the SBA's PPP guidelines. That raises the interesting question of what the tax effects of forgiveness are. Is the forgiven portion taxable? The short answer, according to the IRS, [...]
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Generally, taxpayers must begin taking a required minimum distribution (RMD) from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA when they reach age 72 (70 1/2 if they reached 70 ½ before January 1, 2020). The RMD for any year is the account balance as of the end of [...]
Update (6/30/20): The SBA has issued new guidance and a loan forgiveness application that clarifies that 100% of the PPP loan is now automatically forgiven for self-employed individuals with no employees. Consequently, we have deleted the prior blog on this subject.
Businesses that have been impacted financially by COVID-19 may be able to take advantage of a new, refundable tax credit called the Employee Retention Credit. The credit is designed to encourage businesses to keep employees on their payroll and is worth 50 percent of qualifying wages up to $10,000 that are paid by an [...]
An unprecedented "triple whammy" tax deadline is fast approaching. July 15 is the due date for the following: Individual income tax returns (Form 1040) and trust income tax returns (Form 1041); First quarter 2020 estimated tax payments; and Second quarter 2020 estimated tax payments Although an extension is available until October 15 to file [...]
Good news! Congress has passed, and the President is expected to sign, a bill that adds considerable flexibility to the rules for PPP loan forgiveness. Under the previous rules, forgiveness required that at least 75% of business expenses in the 8-week period after the loan closing be used for payroll expenses. The new rules [...]
Update 4/8/2020: The roll out of this program has been rocky, to say the least. Some banks (Wells Fargo being one) have announced that they are not participating. If you are having difficulty applying through your bank, we encourage you to contact a local community bank and ask if it will let you apply [...]
The Senate’s $2 trillion coronavirus-relief bill that passed on March 25 includes benefits for Americans whose retirement accounts have been battered by the stock-market meltdown. Hardship distributions from IRAs and 401(k)s “Hardship withdrawals” of up to $100,000 are available. The withdrawals would still be taxable, but account owners can pay the income tax due [...]
The massive coronavirus stimulus bill is expected to clear Congress today. Courtesy of the Wall Street Journal, here is a FAQ regarding the stimulus checks for individuals: How much money is it? The plan provides $1,200 for each adult and $500 for each child under 17. A married couple with two children would get [...]
Update: We have added additional blogs on key topics: FAQ re Coronavirus Stimulus Checks FAQ re Coronavirus Loans for Small Businesses Retirement Provisions of the Coronavirus Relief Bill We hope that you and your family are safe and healthy. As economic losses continue from the coronavirus pandemic, South Carolina and the federal government have [...]