A Detailed Guide to Pass-Through Entity Taxation for Small Business Owners
If you’re a small business owner or partner in a partnership, you’ve probably heard about pass-through taxation. However, if you’re unsure exactly what it is, let’s explore its meaning and how it works. In short, a pass-through entity is a way for a business owner to avoid paying taxes at the corporate level and instead […]
FinCEN’s Uniform Beneficial Ownership Information Reporting Rules and Related Rule Proposals
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) recently issued final rules implementing Section 6403 of the Corporate Transparency Act (CTA). These rules, also called the Beneficial Ownership Information (BOI) Rules, are designed to protect the U.S. financial system from illicit use by criminals using shell companies and other corporate structures to hide […]
PPP Likely Extended to May 31
[vc_row][vc_column][vc_column_text]Small businesses got some good news on Tuesday, when the House of Representatives voted to extend the Paycheck Protection Program for two months. On Tuesday, the House passed the PPP Extension Act of 2021, by a 415-3 vote. It would extend the program to May 31, instead of the current date of March 31, and […]
PPP Borrower Tax Relief Under New Act
Under the Coronavirus Response And Relief Supplemental Appropriations Act of 2021(the “Act”), passed last week by Congress and ultimately signed into law, PPP borrowers will now be able to deduct payroll and non-payroll expenses funded with their PPP loans, and will not have to include PPP loan forgiveness in income. PPP Loan Deductibility For the […]
IRS Issues New Guidance On Treatment of PPP Loan Expenses
On November 18th, the Treasury released new guidance concerning the tax treatment of expenses paid with Paycheck Protection Program (PPP) loan funds. Newly issued Revenue Ruling 2020-27 provides that recipients of PPP loans may not deduct expenses paid with PPP funds in the year in which such expenses were paid or incurred. The Ruling further […]
PPP Update – New SBA Notice Addresses Change of Ownership of PPP Borrowers
As the SBA gears up for borrowers to apply for forgiveness for their PPP loans, on October 2, 2020, they issued Procedural Notice 5000-20057 (“Notice”), the purpose of which is to provide information concerning the required procedures for changes of ownership of an entity that has received Paycheck Protection Program (PPP) funds (a “PPP borrower”). […]
New Tax Bill Forever Changes Retirement Planning
A new tax bill has passed the House and is now being considered by the Senate. It enjoys bi-partisan support and will probably become law. Trying to be poetic, Congress has strained to come up with an acronym- the SECURE Act of 2019. This stands for Setting Every Community Up for Retirement Enhancement Act of […]
Professional Practices: Choosing The Best Entity For Tax And Asset Protection
Drs. Jose Smith and Ryan Abraham, fed up with the bureaucracy of their large group practice, left to start a new practice together. They consulted their tax attorney for advice as to the best entity for tax and asset protection. Here’s what the lawyer said. Without making this overly complicated, we will only consider a […]
Sudden Death Can Mean The End of Your Business
No one expected this. Dr. Thomas, age 55, died suddenly when he fell off his bike and hit his head on the pavement. Dr. Thomas was a well respected internist with several offices, four associates, and 25 employees. As the only shareholder, he was the only signatory on his corporate account. Dr. Thomas had met […]
TAX REFORM: DOES IT EVER END?
The short answer is no. Although everyone agrees that reform is needed, the devil is in the details. Or in other words, whose ox is getting gored? Economists have three criteria to evaluate tax policy: equity, efficiency and simplicity. Equity pertains to the fairness of the tax law. There are two types of equity: horizontal and […]