Back in mid-November, we wrote this article stating that expenses paid with Paycheck Protection Program (PPP) loan proceeds are not deductible. And it was true at the time. We also stated that Congress may act on this, since it was their intent to allow expenses to be deductible, but it was not clearly written into the CARES […]
PPP Updates from the Stimulus Package Read More »
As the year is coming to a close, it is a good time to review any mutual fund holdings in your taxable accounts and and do what is necessary to avoid potential tax traps. Avoid surprises Near the end of the year, mutual funds typically distribute all or most of their net realized capital gains
Handle Mutual Funds With Care at Year End Read More »
The U.S. Supreme Court ruled in South Dakota v. Wayfair over two years ago. The ruling said that states may require out-of-state sellers to collect sales and use tax even if they lack a physical presence in a state. Since that time, most states that collect sales tax have enacted “economic nexus” laws that expand the reach
Have You Reviewed Sales Tax Laws Lately? Read More »
Most of us are ready for 2020 to end. From a tax perspective, however, the end of the year means thinking about the filing status you’ll use when filing your tax return for the year. Partly, it depends on whether you’re married on December 31, 2020. Five different statuses When you file your federal tax
Do You Know Your Taxpayer Filing Status? Read More »
There has been a lot of confusion and discussion about what is, and is not, deductible when it comes to Paycheck Protection Program (PPP) loan funds. While it was clear that loans that are forgiven would not be considered taxable income, there was still the question of whether expenses paid with a forgiven PPP loan
IRS States that Expenses Paid with PPP Loan Proceeds Are Not Deductible Read More »
If you have realized gains during the year and are planning to sell capital assets at a loss to offset to those gains, beware of the “wash sale” rule. Basically, if you sell stock or securities for a loss and buy substantially identical stock shares or securities within the 30-day period before or after the sale date,
Watch Out for “Wash Sales” When Selling Securities Read More »
The COVID-19 crisis has hit all of us, but some more than others. If you own one of the many companies that need to conserve cash and reduce expenditures on equipment this year, you may find that you are not able to claim as many depreciation tax deductions as in the past. However, if your
Do You Need a Cost Segregation Study? Read More »
Most people love a good sandwich, but in this case, being in the “sandwich generation” can be a real challenge. Originally coined to describe Baby Boomers caught between caring for their aging parents and their children, the term now applies to whichever generation happens to be grappling with the problem, currently mostly Gen X. If you’re
Helping Those in the Sandwich Generation Read More »
2020 has been a rough year, so we can all use a bit of good news. While it’s not a huge adjustment, the IRS recently announced more than 60 tax provision adjustments, including standard deductions, tax rate schedules and a variety of others too. Keep in mind these are for the 2021 tax year though,
IRS Makes Inflation Adjustments for 2021 Read More »
The Connecticut Department of Economic and Community Development (DECD) recently created a $50 million grant program to help small businesses and nonprofits in the state recover from the ongoing challenges of COVID-19. Those that meet the qualifications can receive a one-time $5,000 grant and should receive the funds by December 30, 2020. Are you eligible?
CT Creates $50M Grant Program for Small Businesses & Nonprofits Read More »
First, let’s define what a nonqualified deferred compensation (NQDC) plan is. These plans allow you to set aside large amounts of tax-deferred compensation and then schedule distributions that align with your financial goals. Sound intriguing? Like most things in life, they also come with substantial risk. If your (or a prospective) employer offers an NQDC plan
Is Nonqualified Deferred Compensation for You? Read More »
The alternative minimum tax (AMT) has negatively impacted many taxpayers in the middle- to upper-income brackets for many years. The Tax Cuts and Jobs Act (TCJA) took much of the “teeth” out of the AMT by raising the inflation-adjusted exemption. Now middle-income earners have less to worry about, but those income that has increased (or
AMT Has Less Impact with TCJA Read More »