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PPP loans have reopened: Let’s review the tax consequences
- Feb 15, 2021
- By Dukhon Tax
- In Business, Business Taxes, COVID-19
The Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder about the tax consequences. Background on the loans In March of 2020, the CARES Act became law. It authorized the…
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One reason to file your 2020 tax return early
- Feb 08, 2021
- By Dukhon Tax
- In Business, Business Taxes, COVID-19
The IRS announced it is opening the 2020 individual income tax return filing season on February 12. (This is later than in past years because of a new law that was enacted late in December.) Even if you typically don’t file until much closer to the April 15 deadline (or you file for an extension), consider filing earlier this year.…
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Getting more for your marketing dollars in 2021
- Feb 01, 2021
- By Dukhon Tax
- In Business, Business Taxes, COVID-19
A new year has arrived and, with it, a fresh 12 months of opportunities to communicate with customers and prospects. Like every year, 2021 brings distinctive marketing trends to the table. The COVID-19 pandemic and resulting economic challenges continue to drive the conversation in most industries. To get more for your marketing dollars, you’ll need to tailor your message to…
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The new Form 1099-NEC and the revised 1099-MISC are due to recipients soon
- Jan 29, 2021
- By Dukhon Tax
- In Business, Business Taxes, COVID-19
There’s a new IRS form for business taxpayers that pay or receive certain types of nonemployee compensation and it must be furnished to most recipients by February 1, 2021. After sending the forms to recipients, taxpayers must file the forms with the IRS by March 1 (March 31 if filing electronically). The requirement begins with forms for tax year 2020. Payers must complete…
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Don’t forget to take required minimum distributions this year
- Jan 28, 2021
- By Dukhon Tax
- In Business, Business Taxes, COVID-19
If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age — or you’ll be penalized. The CARES Act, which passed last March, allowed people to skip taking these withdrawals in 2020 but now that we’re in 2021, RMDs must be taken again.…
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PPP Second Draw – Program Analysis, Eligibility, and Instructions
- Jan 19, 2021
- By Dukhon Tax
- In Business, Business Taxes, COVID-19
Summary: On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021 (CAA, 2021) into law. The CAA includes Division N – Additional Coronavirus Response and Relief (ACRR), which has a provision that provides for Paycheck Protection Program (PPP) Second Draw loans. CAA, 2021 – Paycheck Protection Program Second Draw Loans. ACRR permits certain smaller businesses who received a…
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The Balanced Scorecard approach to strategic planning
- Jan 12, 2021
- By Dukhon Tax
- In Business, Business Taxes
In the early 1990s, the Balanced Scorecard approach to strategic planning was developed to enable business owners to better organize and visualize their objectives. With 2021 shaping up to be a year of both daunting challenges and potentially remarkable recovery, your company should have a strategic plan that’s both comprehensive and flexible. Giving this methodology a try may prove beneficial.…
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The right entity choice: Should you convert from a C to an S corporation?
- Jan 08, 2021
- By Dukhon Tax
- In Business, Business Taxes
The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in some circumstances, there are potentially costly tax issues that you should assess before making the decision…
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Need another PPP loan for your small business? Here are the new rules.
- Jan 07, 2021
- By Dukhon Tax
- In Business, COVID-19
Need another PPP loan for your small business? Here are the new rules. Congress recently passed, and President Trump signed, a new law providing additional relief for businesses and individuals during the COVID-19 pandemic. One item of interest for small business owners in the Consolidated Appropriations Act (CAA) is the opportunity to take out a second loan under the Paycheck…
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What’s better than PPP? PPP + ERC! – Expansion of the employer retention credit under new law
- Jan 06, 2021
- By Dukhon Tax
- In Business, Business Taxes, COVID-19
What’s better than PPP? PPP + ERC! – Expansion of the employer retention credit under new law The CARES Act supports certain employers that operate a business during 2020 and retain employees with an employee retention credit. The tax credit is equal to 50% of qualified wages paid to employees after March 12, 2020, and before Jan. 1, 2021. On…