As a friendly reminder, here are some simple last minute year-end tax savings strategies for you and your business. In addition, the CARES ACT and other recently passed legislation has significantly changed many tax laws and provided beneficial changes. On December 21, 2020, The U.S. Senate and House of Representatives overwhelmingly passed a $900 billion COVID-19 relief bill Monday night that provides $600 stimulus payments to individuals, adds $300 to extended weekly unemployment benefits, and provides more than $300 billion in aid for small businesses in additional PPP funding (PPP2). Also addressed in the Consolidated Appropriations Act, 2021, was… Continue reading →

Paycheck Protection Program

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

• Small businesses may be eligible for a Paycheck Protection Program loan under the new federal legislation designed to provide small businesses quick access to capital for payroll and other overhead costs.

• It will require no collateral or personal guarantees.

• Generally the loan amount will be based on 2.5 times your average monthly payroll costs.

• You may be eligible to have all or a portion of the loan principal forgiven based on SBA rules.

• You won’t have to make payments on the loan for at least six months.

• Applications for small business Paycheck Protection Program open April… Continue reading →

If you’re like most small business owners in today’s faced paced world… you look up and find yourself having to do everything at the last minute with an ever growing list of things to do!!!

Well we wanted to make your year-end tax planning simple and easy so that you can save valuable time and money. Here are some quick and simple last minute year-end tax savings strategies for you and your business.

Cash basis business owners:

• Hold cash deposits to deposit until after the year flips, so that you defer income recognition into 2018
• Prepay expenses or vendors… Continue reading →

Today, Treasury Secretary Steven Mnuchin and Chief Economic Advisor Gary Cohn outlined President Trump’s proposed tax changes. During the presentation, they summarized the president’s proposal to cut the number of income tax brackets to three, with respective rates of 35%, 25% and 10%.

Other proposed changes include a corporate tax cut to 15%, elimination of many tax deductions, as well as a removal of the estate tax and alternative minimum tax (AMT). These proposed changes align closely with the president’s campaign plan.

Though it was not indicated when legislation would be introduced on these proposed changes, Mnuchin expressed… Continue reading →

If you’re like the rest of us in today’s faced paced world… you look up and find yourself having to do everything at the last minute. Well here are some quick last minute year-end tax savings strategies for you and your business.

Cash basis business owners:

• Hold deposits to deposit after the year flips to defer income recognition
• Prepay expenses, vendors, retainers, etc to accelerate deductions
• Consider using a credit card to pay deductible expenses before the end of the year. Doing so will increase your 2016 deductions even if you don’t pay your credit card bill until after the… Continue reading →

How Trump used the Tax Code to build wealth and How You Should Too

Did you know that real estate is the only investment in the US that can be expensed? You can’t expense the purchase of stocks, bonds, or investments, however, you can expense your investment in real estate; and often times… do most of that expensing upfront. Note in the article, how The New York Times mentions how Trump used cost segregation to generate non-cash Federal tax losses.

Real Estate is also the only investment class where the government will give you part of the… Continue reading →

What’s the difference between a defined benefit plan and a defined contribution plan?

A defined-benefit plan guarantees a specific benefit or payout upon retirement. The contributions needed to meet this specified amount at retirement are tax deductible and can allow business owners to make large, tax deductible contributions into their own plans during their high income years. As individuals plan for retirement, it’s important to understand the difference between these two benefit plan types.

A defined-benefit plan guarantees a specific benefit or payout upon retirement, the benefit may be a set amount or may be calculated according to a formula… Continue reading →