On November 15, 2021, the President signed the Infrastructure Investment and Jobs Act (IIA). There are very few tax provisions in the infrastructure legislation; however, most of the tax changes may be coming into effect in the fiscal year 2022 budget reconciliation bill that remains under review by Congress. Those would include extensions of recent changes to the following: • Child [...]
Build Back Better Act (BBB) is expected to be signed into law before Thanksgiving! On October 28, 2021, the House Rules Committee released a revised bill summarizing the Democrats’ compromise on their budget reconciliation package proposal for The Build Back Better Act. Unfortunately, after weeks of discussions regarding tax rate increases for individuals, corporations, capital gains, and the billionaire [...]
Did you know that October is National Cyber Security Awareness Month? This month has been designated to bring awareness to the cyber threats that we all face. When we think of October, we often think of cooler temperatures, leaves changing, football, pumpkin spiced lattes, and Halloween – or "spooky season." We're all familiar with the tradition of trick-or-treating. Children dress [...]
Why would a pass-through entity voluntarily elect to be taxed at the entity level? Mainly because of the individual SALT $10,000 limitation. State pass-through entity taxes are now viewed as a workaround to the $10,000 limitation by imposing an income tax directly on the pass-through entity, which is a "trade or business." The pass-through entity is not limited to the [...]
The SBA announced several policy changes to the COVID-19 Economic Injury Disaster Loan (EIDL) program effective September 8, 2021. The loan cap has been increased from $500,000 to $2,000,000. The SBA will calculate the maximum loan amount by taking 2019 gross sales less 2019 cost of goods sold and multiplying by 2, or $500,000, whichever is less. More flexibility has [...]
What do you mean, guilty?! I’m an honest business person trying to grow my company! We aren’t talking about “guilty” in a courtroom sense. In the tax realm, GILTI, Global Intangible Low-Taxed Income, is a form of alternative minimum tax for foreign income earned by your US-owned business. While there is no crime in wanting to expand your business to [...]
Qualified Opportunity Zone. The idea arose when the IRS and politicians found themselves with two issues. Firstly, politicians wanted to help revitalize low-income neighborhoods, crying out for help. Secondly, the IRS noted that there were likely billions of dollars in appreciated property owned by US taxpayers. And that property was sitting on the sidelines, untaxed. By collaborating and merging these [...]
In 1959, Public Law 86-272 was passed restricting states from imposing a net income tax from income derived within a state from interstate commerce if the company does not have nexus in that state. This set up the physical presence test, which looks for employees or property, such as buildings or inventory, domiciled within a state. This test also applied [...]
The American Rescue Plan Act increased the maximum Child Tax Credit amount in 2021 to $3,600 per child for children under the age of 6 and $3,000 per child for children ages 6 through 17. The credit is usually available only when a person files his or her income tax return. Half of the advance child tax credit is being [...]
ASU 2016-02 is effective for nonpublic entities for the calendar year 2022. The effective date was changed from the calendar year 2021 as a result of COVID-19. Early adoption of the new standard is permitted for all entities. All companies with lease agreements will be affected. Industries that could be significantly impacted include those with multiple locations (retail operations) and [...]
