Kinds: Articles

4 Important Changes on Your 2020 Tax Return

Tax season has started. Your tax professional is ready to prepare your 2020 federal and state returns — but are you ready? The pandemic has led to several changes to the tax rules for last year. Here’s a summary of four taxpayer friendly changes that may affect your 2020 federal income tax return. 1. Limited Charitable…

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How Your Nonprofit Can Act on 2021’s Biggest Trends

What can not-for-profit organizations expect in 2021 and beyond? One recent report, “11 Trends in Philanthropy for 2021,” offers some answers. Produced by the Dorothy A. Johnson Center for Philanthropy at Grand Valley State University (Grand Rapids, Mich.), the 32-page report pinpoints trends such as the growth of social justice funding and new opportunities to…

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Biden Executive Orders Signal Coming Employment Regulation Changes

Presidential executive orders (EOs) generally lack the power to immediately alter the ways that employers and citizens are required to act. Still, they get the ball rolling towards changes that are likely to be coming, in the form of federal regulations and policies. That is, as long as they can be justified by the laws…

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Nonprofits Need to Educate Donors About New Tax Benefits

The Consolidated Appropriations Act (CAA) enacted in December 2020 extends and modifies several key tax provisions originally included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided several forms of financial support to individuals and businesses. Not-for-profit organizations should pay particular attention to two extended provisions: a tax break for…

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PPP Changes Provide Greater Access for Smallest Businesses

The Biden Administration announced changes to the Paycheck Protection Program (PPP) to increase lending to smaller businesses and help ensure equitable distribution of loans to them. But qualified businesses may want to act fast because there is a two-week period when PPP loan applications will exclusively be accepted from businesses with fewer than 20 employees….

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How Can Business Owners Lower Last Year’s Tax Bill?

Good news! Business taxpayers may still be able to take actions to lower their federal income tax liabilities for 2020, as well as for future years. Consider these ideas before you file last year’s return. Claim 100% First-Year Bonus Depreciation — Or Maybe Not For qualifying assets placed in service in 2020, business taxpayers can deduct…

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Last-Minute Tips for Your 2020 Personal Return

Goodbye, 2020. Hello, tax season. Individual taxpayers have until April 15, 2021, to pay Uncle Sam for taxes owed for 2020. (Remember, you can extend the deadline for filing your return until October 15, but you can’t extend the deadline for paying what you owe without penalty.) Unfortunately, many people are struggling to make ends meet…

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Bad Debts: What Losses Can You Deduct and When?

Attempts to claim write-offs for bad debt losses have fueled controversies with the IRS for many years. Unfortunately, bad debt losses are increasingly common during the COVID-19 pandemic. Here’s an overview of the federal income tax treatment of these losses. The Basics The IRS is always skeptical when taxpayers claim deductions for bad debt losses….

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PPP Loan Changes Included in the New Appropriations Act

The Consolidated Appropriations Act (CAA) extends, liberalizes and expands the Paycheck Protection Program (PPP). Originally established by the CARES Act, the PPP expired on August 8, 2020. Now the CAA resurrects it. Here are the most important things small businesses should know from this section of the new law. Second-Draw Loans Under the new law,…

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New Appropriations Act Includes Disaster Tax Relief

You’ve probably heard about the massive new Consolidated Appropriations Act (CAA), which provides direct payments to eligible individuals and contains other provisions to help mitigate the effects of COVID-19. But it also provides several tax-relief measures related to qualified disasters. Here’s a summary of the key provisions. Deduction Rules for Personal Qualified Disaster Casualty Losses…

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