The IRS released the final regulations and other guidance on the limitation on the deduction for business interest expenses under the Tax Cuts and Jobs Act of 2017 that was amended by the CARES Act of 2020.
A trust can be a powerful estate-planning tool, but contrary to popular belief, trusts do not make all taxes disappear. The families who set them up still need to consider tax consequences.
With age, the focus often turns from planning for the purchase of a bigger home to planning to have enough income to live well after retirement. Many factors contribute to this calculation, but following are four common considerations:
The SECURE Act's fix to the TCJA glitch — that's how Forbes describes what's been going on with the football that is called the Kiddie Tax. When the Tax Cuts and Jobs Act changed the way the Kiddie Tax was figured, it caused a lot of concern for families with children with unearned income. The fix is retroactive for 2019 and 2018 returns.
Employers needs to make themselves familiar with Form 940, used to report the Federal Unemployment Tax Act tax. The FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs.
The IRS has released new guidance on various aspects of PPP loan forgiveness. Below are summaries of the key provisions.
What can business owners do to reduce their taxes? Some need to make themselves aware of the various breaks available. Some of the benefits available to businesses for 2020 are the result of the 2017 Tax Cuts and Jobs Act (TCJA) and some were created by the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act). In addition, although the chance of any further tax or Covid-19 legislation seems slim, further changes may come.
One effect of the Covid-19 pandemic is that many businesses are struggling with cash flow. This translates to an accounts receivable problem for the companies they owe money to. Knowing what your business can do lies in having good strategies in place to follow up with clients who are not paying their bills.
What will 2021 bring us? After a year of turmoil and surprises, no one has a clear crystal ball. But there are some certainties, and one is that the federal government is changing a variety of number affecting the finances of businesses and individuals.
First, any individual or business that received government funds this year should keep that in mind and have records on hand. This includes unemployment benefits and Paycheck Protection Program funds. The taxable situation for these can be complicated, so be sure to discuss them with a financial professional before the end of the year.
Newsletter articles are posted every 2 weeks.
If you would like to have our e-newsletter delivered directly to your inbox, please sign up. Your information is confidential; you can unsubscribe at any time. Subscribe.