Search Resources
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…
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…
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….
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,…
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…
2021 Will Accelerate Accounting’s Digital Transformation
We can’t put the genie back in the bottle. The words “Digital Transformation” have become something of a buzz phrase since COVID-19 turned our world upside down last March. The fact is that digital transformation was already happening at a steady pace ― COVID-19 merely accelerated this shift. The pandemic introduced a plethora of new…
The Tax Implications of Closing a Schedule C Business
Unfortunately, many businesses have already been forced to close their doors due to the economic fallout from COVID-19, and more will surely follow. Closing a business has important federal income tax implications that owners should understand. Here’s what owners of sole proprietorships and single-member (one-owner) limited liability companies (SMLLCs) need to know. Reporting Gains, Losses…
Appropriations Law Adds Some Business Tax Breaks and Extends Others
President Trump signed the Consolidated Appropriations Act (CAA) into law on December 27, 2020. The legislation adds a few new tax breaks for businesses and extends a bevy of other business breaks that were set to expire at the end of 2020. Note: The tax changes explained in this article are found in sections of…
New Law Includes Favorable Changes for Individuals
The massive COVID-19 relief bill signed by President Trump on December 27, 2020, contains a variety of tax breaks and authorizes direct payments to eligible individuals (see right-hand box). The law is titled the Consolidated Appropriations Act of 2021 (CAA) but two sections of it are called the COVID-Related Tax Relief Act (COVIDTRA) and the…
Manage the Tax Implications of Closing Your Corporation or Pass-Through Entity
Economic fallout from the COVID-19 pandemic has sadly forced some small businesses to permanently close. This situation has important federal tax implications. Here’s what individual taxpayers who are owners of so-called “pass-through” entities and C corporations should know. Pass-Though Entity Issues If you’re closing a business that’s operated as a pass-through entity — including a…
COVID-19-Related Relief Is Signed Into Law
On December 27, President Trump signed the Consolidated Appropriations Act of 2021 (CAA), which provides pandemic relief, as well as other tax and health-related provisions. The CAA contains the COVID-Related Tax Relief Act of 2020 (COVIDTRA), as well as a government funding law. Here are some of the highlights. Direct payments to certain individuals. The…