Articles - Page 17 of 20 - GG Advisors LLC

The U.S. House of Representatives and U.S. Senate passed, and the President has signed, the Coronavirus Response & Relief Supplemental Appropriations Act. The agreement comes after weeks of negotiations and two funding extensions to keep Congress open until a bill was passed with a $1.4 trillion government-wide funding plan. The $900 billion coronavirus relief portion includes another round of Paycheck Protection Program (PPP) funding, extended unemployment benefits, and direct payments to taxpayers. Here’s an overview of the key provisions in the bill.

The pandemic created by the novel coronavirus has drastically changed the way we live and work. As more businesses are forced to send their employees home, work-from-home life has become a mainstay especially in knowledge-based jobs (jobs that do not require physical labor), and many of these industries are not going back to the workplace anytime soon. This can create wrinkles for both employers and employees when it comes to their tax situations.

This year has been unique and beyond comparison in many ways, and tax planning is just one of the implications of current events. Both individual and business taxes have the potential to be significantly impacted by the various legislation that has passed like the FFCRA and the CARES Act, the loan programs made available like the PPP and the EIDL, and the unemployment/stimulus programs that touched many Americans.

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Wrap up the crazy year that is 2020 on the right foot with your business by reviewing your tax planning and implementing strategies to optimize opportunities. Provisions of the Tax Cuts and Jobs Act (TCJA) are still in play. For those involved in closely held entities, carefully pairing your business strategy with your personal strategy is essential this season.

Reviewing your tax situation each year prior to filing is essential to ensuring your compliance is up to date and opportunities have been optimized. This guide contains strategies to help you save on your taxes if enacted before year-end. For assistance or further detail, contact your Goering & Granatino team member at (913) 396-6225.

On Nov. 18, the IRS and Treasury issued Revenue Ruling 2020-27 which provides long-awaited guidance on the tax treatment of expenses related to Paycheck Protection Program (PPP) loans. The guidance states that the expenses listed in section 1106(b) of the CARES Act that would otherwise be deductible will not be allowed in the taxable year that the expenses were paid or incurred and covered under a PPP loan that is forgiven or expected to be forgiven.

On Aug. 24, the Small Business Administration (SBA) and Treasury issued the latest interim final rule update to the Paycheck Protection Program (PPP) that seeks to clarify guidance related to owner-employee compensation and non-payroll costs. This guidance has been long-awaited and clears up several questions borrowers have had about forgiveness. Here are the main points.

The Small Business Administration (SBA) and Treasury released an updated Paycheck Protection Program (PPP) FAQ on Aug. 4 in an effort to address PPP loan forgiveness issues that have arisen as borrowers begin to complete their applications. The 23 FAQs address various aspects of PPP forgiveness including general loan forgiveness, payroll costs, non-payroll costs, and loan forgiveness reductions. Here is a brief overview of some of the most notable clarified guidance.

In the midst of the uncertainty and instability that the COVID-19 pandemic has created for businesses and individuals, some relief is available for taxpayers in the form of deductible losses thanks to the preexisting Internal Revenue Code (IRC) Section 165(i).

President Trump has signed a five-week extension to the Paycheck Protection Program (PPP) which was unanimously agreed upon last week by the U.S. Senate and House of Representatives in an effort to continue providing relief for small businesses hit hard by the pandemic.

Articles - Page 17 of 20 - GG Advisors LLC

President Trump signs second Coronavirus relief bill, includes new funding and updates to PPP

Work-from-home tax implications: What employers and employees need to know

2020 tax planning considerations for businesses, individuals

2020 Business Tax Planning Guide

2020 Individual Tax Planning Guide

Guidance issued on deductibility of expenses with a PPP loan

Latest update to PPP provides guidance on owner-employee compensation, non-payroll costs

Latest PPP FAQ document provides clarity on some aspects of forgiveness

Taxpayers may find pandemic relief in Section 165(i) deduction

President signs 5-week PPP extension