Summary of Small Business Administration (SBA) Relief Programs
As there is much information and law changes occurring lately, below is a brief summary of some relief programs for businesses effected by the COVID-19 pandemic. Paycheck Protection Program (PPP)…
Second Quarter Estimated Tax Payments for 2020
The IRS just announced that the second quarter estimated tax payment for individuals that was due on June 15, 2020 has been pushed back to July 15, 2020. Therefore, the…
Small Business Interruption Loan
These are SBA 7(a) loans that have been authorized for the SBA to lend to small businesses as part of the Coronavirus Aid, Relief and Economic Securities (CARES) Act. Any…
Paycheck Protection Program (PPP)
This is an SBA loan that helps businesses keep their workforce employed during the COVID-19 crisis. Lenders may begin processing these loans as soon as April 3, 2020 but has…
Delay the Federal 2019 Tax Filing Deadline and Quarterly Estimated Payments
The economic downturn and public health crisis has hit as many firms and individuals are completing tax returns for the 2019 tax year. The IRS has extended the income tax…
Certain SBA loan debt forgiveness isn’t taxable.
Amounts of Small Business Administration Section 7(a)(36) guaranteed loans that are forgiven under the CARES Act aren’t taxable as discharge of indebtedness income if the forgiven amounts are used for…
Delayed payment of employer payroll taxes. Business Provision.
Taxpayers (including self-employed individuals) will be able to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two…
Employee retention credit for employers. Business Provision.
Eligible employers can qualify for a refundable credit against, generally, the employer’s 6.2% portion of the Social Security (OASDI) payroll tax (or against the Railroad Retirement tax) for 50% of…
Waiver of required distribution rules.
Required minimum distributions that otherwise would have to be made in 2020 from defined contribution plans and IRAs are waived. This includes distributions that would have been required by April…
Waiver of 10% early distribution penalty.
The additional 10% tax on early distributions from IRAs and defined contribution plans is waived for distributions made between January 1 and December 31, 2020 by a person who (or…
Recovery rebates for individuals.
To help individuals stay afloat during this time of economic uncertainty, the government will send up to $1,200 payments to eligible taxpayers and $2,400 for married couples filing joints returns.…
IRS Provides Extension for Federal Income Tax Payments Due April 15
The IRS has provided tax payment relief for any person with a federal income tax payment due April 15. On March 13, 2020, the President issued an emergency declaration under…
Families First Coronavirus Response Act
The President has signed the Families First Coronavirus Act (HR 6201, the "Act") intended to ease the economic consequences stemming from the novel coronavirus disease (COVID-19) outbreak by providing family…
An Update from us on COVID-19
As COVID-19 continues to impact our communities, here at Newsom And Associates, we wanted to touch base with you and share what we are doing from our end. As information and…
IRS Issues Extensive Guidance to Help Clarify Calculation of the Section 199A Deduction
In January, the IRS issued eagerly anticipated guidance on the qualified business income (QBI) deduction under Code Sec. 199A in final regulations, proposed regulations, and Rev. Proc. 2019-11. Code Sec.…
Bunching Deductions into 2019
As you may know, TCJA significantly increased the standard deduction for all taxpayers. This means that many individuals who previously received a tax benefit by itemizing deductions no longer do,…
Medical Expenses and Health Savings Accounts
For 2019, your medical expenses are only deductible as an itemized deduction to the extent they exceed 10 percent of your adjusted gross income. Depending on what your taxable income…
Mortgage Interest Deduction
If you sold your principal residence during the year and acquired a new principal residence, the deduction for any interest on your acquisition indebtedness (i.e., mortgage) could be limited. The…
Home Office Expenses
When the TCJA eliminated the miscellaneous itemized expense deduction, it eliminated the ability of employees to deduct home office expenses. However, taxpayers with their own business can still file a…
Charitable Contribution Deductions
As a result of the increase in the standard deduction, some taxpayers are no longer getting a benefit from itemizing their deductions, such as charitable contributions, as they once were.…