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 [...]
IRS Releases Details on American Rescue Plan Tax Credit for Paid Leave to Help Small Businesses Through The American Rescue Plan Act of 2021 (ARP), President Biden offers a tax credit to small and mid-size employers with less than 500 employees. This tax credit is referred to as the “ARP Tax Credit” or “paid leave tax credit.” It is being [...]
Starting Friday, April 30 the U.S. Small Business Administration (SBA) will open registration for restaurants for the Restaurant Revitalization Fund (RRF). Applications may be submitted Monday, May 3, 2021. What is the RRF? On March 11, 2021, the U.S. Small Business Administration announced details regarding the $28.6 billion Restaurant Revitalization Fund (RRF) created to help businesses recover from the economic [...]
SBA Updates for Paycheck Protection and Economic Injury Disaster Loan Programs The SBA’s PPP and EIDL Programs have been an invaluable support to numerous businesses since the initiation of the economic shutdown and mandates caused by COVID-19 in 2020. Each program has been enhanced and extended to help entrepreneurs as this pandemic continues. PPP Updates On March 30th, President Biden [...]
A qualified retirement plan may make a Qualified Disaster Loan to a qualified individual up to $100,000 from December 27, 2020, until June 25, 2021. The Consolidated Appropriation Act (CAA) defines qualified disasters as a major disaster that the President declares during the period beginning on January 1, 2020, and ending on February 25, 2021, but which must have occurred [...]
