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IRS releases 2021 amounts for Health Savings Accounts
- Jun 03, 2020
- By Dukhon Tax
- In Tax Tips
The IRS recently released the 2021 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered under a “high deductible health plan.” In…
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Business meal deductions: The current rules amid proposed changes
- Jun 02, 2020
- By Dukhon Tax
- In Business, Business Taxes
Restaurants and entertainment venues have been hard hit by the novel coronavirus (COVID-19) pandemic. One of the tax breaks that President Trump has proposed to help them is an increase in the amount that can be deducted for business meals and entertainment. It’s unclear whether Congress would go along with enhanced business meal and entertainment deductions. But in the meantime,…
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Attuning your social media strategy to the pandemic
- May 21, 2020
- By Dukhon Tax
- In COVID-19
Social media for business: Your time has come. That’s not to say it wasn’t important before but, during the novel coronavirus (COVID-19) pandemic, connecting with customers and prospects via a popular platform is essential to maintaining visibility, building goodwill and perhaps even generating a bit of revenue. What’s challenging is that the social media strategy you deployed before the crisis…
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Fortunate enough to get a PPP loan? Forgiven expenses aren’t deductible
- May 18, 2020
- By Dukhon Tax
- In Tax Tips
The IRS has issued guidance clarifying that certain deductions aren’t allowed if a business has received a Paycheck Protection Program (PPP) loan. Specifically, an expense isn’t deductible if both: The payment of the expense results in forgiveness of a loan made under the PPP, and The income associated with the forgiveness is excluded from gross income under the Coronavirus Aid,…
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Subchapter V: A silver lining for small businesses mulling bankruptcy
- May 07, 2020
- By Dukhon Tax
- In Business
Many small businesses continue to struggle in the wake of the coronavirus (COVID-19) pandemic. Some have already closed their doors and are liquidating assets. Others, however, may have a relatively less onerous option: bankruptcy. Although bankruptcy obviously isn’t an optimal outcome for any small company, there may be a silver lining: A new bankruptcy law — coupled with an under-the-radar…
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The CARES Act liberalizes net operating losses
- May 04, 2020
- By Dukhon Tax
- In Business, Business Taxes
The Coronavirus Aid, Relief, and Economic Security (CARES) Act eliminates some of the tax-revenue-generating provisions included in a previous tax law. Here’s a look at how the rules for claiming certain tax losses have been modified to provide businesses with relief from the novel coronavirus (COVID-19) crisis. NOL deductions Basically, you may be able to benefit by carrying a net…
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Hiring independent contractors? Make sure they’re properly classified
- Apr 27, 2020
- By Dukhon Tax
- In Business, Business Taxes
As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. But you should be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether a worker is an independent contractor or an employee…
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IRS extends some (but not all) employee benefit plan deadlines
- Apr 22, 2020
- By Dukhon Tax
- In Business, Business Taxes
The IRS recently issued Notice 2020-23, expanding on previously issued guidance extending certain tax filing and payment deadlines in response to the novel coronavirus (COVID-19) crisis. This guidance applies to specified filing obligations and other “specified actions” that would otherwise be due on or after April 1, 2020, and before July 15, 2020. It extends the due date for specified…
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New COVID-19 law makes favorable changes to “qualified improvement property”
- Apr 20, 2020
- By Dukhon Tax
- In COVID-19
The law providing relief due to the coronavirus (COVID-19) pandemic contains a beneficial change in the tax rules for many improvements to interior parts of nonresidential buildings. This is referred to as qualified improvement property (QIP). You may recall that under the Tax Cuts and Jobs Act (TCJA), any QIP placed in service after December 31, 2017 wasn’t considered to…
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What are the key distinctions between layoffs and furloughs?
- Apr 15, 2020
- By Dukhon Tax
- In Business, Business Taxes
As businesses across the country grapple with the economic fallout from the novel coronavirus (COVID-19) pandemic, many must decide whether to downsize their workforces to lower payroll costs and stabilize cash flow. If your company is contemplating such a move, you’ll likely want to consider the choice within the choice: that is, should you lay off workers or furlough them?…