Our Two Cents

Guidance from the Small Business Administration (SBA) for lenders of the Round Two (aka “second draw”) of Paycheck Protection Program (PPP) loans is out, and the portal is open.

What does this second round of PPP mean for your small business facing a yet uncertain 2021?

Keep reading to find out how the recent $284 billion allocation to the PPP may impact your business.

If you have begun investigating accounting technology options that fit your business needs and budget, you have come to the right place for a pep talk.

How did I know that you might be a little stressed out?

When the Rolling Stones play Start Me Up, we’re pretty sure they aren’t singing about business startups. However, the tax rules for startup costs can make a grown man cry. Let’s take a close look so you can have some satisfaction in your understanding of this important startup business issue. And maybe you can save a few dollars of income taxes along the way. Let’s roll right into it so you can get this subject under your thumb!

We’d love to see 2020 one more time—in the rear-view mirror! Before we bid this abysmal year farewell, let’s talk taxes. Do you think tax rates will go up in 2021? We certainly don’t know and there are numerous ifs to consider.

1. If Democrats win both Georgia Senate seats in January, and
2. If the US House, Senate, and president all agree to raise (cap gains) taxes in 2021, and
3. If you have capital gains from appreciated investments (that are not tax-deferred like an IRA, 401(k), 403(b) and so on), then you might consider selling some investments before the end of 2020 to save income taxes.

If you have a crystal ball or some other way to predict the future—and you expect all of the above to happen—you might decide to do some strategic selling before the end of 2020. Are we recommending this? Absolutely not! As it stands, we’re not time-travelers or Dr. Who, sadly, so we don’t know what the future brings. That doesn’t mean we, and you, can’t assess our options to make wise and thoughtful decisions about this and other tax matters.

To help you learn a little more about capital gains and what you should be thinking about at year-end, we’ve broken it down into bite-sized pieces for easy absorption.

Cryptocurrency—boy that’s a mouthful, let’s call it crypto for short—has become pretty commonplace these days.

No longer a taboo topic, more and more people are turning to crypto as an alternative currency. But because this is a newish option, the rules and regulations around using it as a business currency are still a little fuzzy. And as we all know, fuzzy and taxes really don’t go hand in hand. To clear up these muddy waters, and to help you avoid the awful surprise of an unexpected tax bill, here’s a basic primer on the taxation of crypto.

Was your business profitable in 2020? Do you expect a large income tax bill? If so, this blog is for you!

We’ve got two things you can do—before the blessed end of 2020—which could save you some serious cash on current year business income taxes! While these are two different actions, they both happen to include the word bonus. And who doesn’t like a bonus? Especially during pandemic times like these.

If you’re anything like us, you’re already thinking about what deductions you'll take come tax season. Sadly, one you might miss out on is a home office tax deduction in 2020, since the Tax Cuts and Jobs Act eliminated unreimbursed employee expenses for almost all W-2 workers in 2017. That means, from 2018 to 2026, employees cannot deduct home office expenses unless they are a member of four protected groups. Which is a bummer with so many of us setting up our new home offices thanks to COVID, right?

We're all pretty disappointed by this change. Deducting home office expenses and other business-related expenses was beloved. In 2015, those who itemize deductions did so to the tune of $96 billion in unreimbursed employee expenses.

There are things to love or hate about the latest executive order of a payroll tax holiday, such as:

• Eligible employees love the extra cash in their pockets that would ordinarily go to the government to spend or to save. Though as it stands now, that extra cash would need to be repaid at the end of the period...
• Employers hate the headache of implementing a new operation to their payroll process and accounting.

 

Updated October 28 to reflect changes made since the CARES Act passed in March.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, became federal law on March 27, 2020. Since then, business owners have had numerous questions about how the CARES Act helps them through this drastic economic crisis.

Our tax experts and CFOs have reviewed the changes to the CARES ACT to help CEOs and entrepreneurs understand how this and other government relief will help your business and team.

Here are five important things you need to know about what is in the CARES ACT for businesses based on questions you might be asking yourself:

 

Small businesses were central in the negotiations of the over $2 trillion Coronavirus Aid, Relief and Economic Security ‘CARES’ Act, the largest economic emergency stimulus package in our nation’s history. The Small Business Administration (SBA) will have the authority to guarantee $349 billion in small business 7(a) loans, now called the Paycheck Protection Program, in addition to the revised Economic Injury Disaster Loan 7(b). It is important to look into each SBA loan and consider if either are a good fit for your SMB.