Paycheck Protection Program (PPP) – New Considerations to Navigate in Uncertain Times
- ByPolk & Associates
- May, 12, 2020
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Just as a lighthouse warns a ship in foggy or stormy conditions of landfall ahead your trusted advisors here at Polk and Associates can serve as your beacon to assist your business during these uncertain and often confusing times. Especially regarding the ever-changing nature of the PPP loan programs. Since the PPP loan program opened […]
The CARES Act liberalizes net operating losses
- ByPolk & Associates
- May, 07, 2020
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The CARES Act includes favorable changes to the rules for deducting net operating losses (NOLs) to provide businesses with relief from the novel coronavirus (COVID-19) crisis. It permanently eases the taxable income limitation on deductions. For tax years beginning before 2021, the CARES Act removes a taxable income limitation on deductions for prior-year NOLs carried over into those years. So NOL carryovers into tax years beginning before 2021 can be used to fully offset taxable income for those years. These changes may affect prior tax years for which you’ve already filed tax returns. To benefit from the changes, you may need to file an amended tax return. Contact us to learn more.
Do you have tax questions related to COVID-19? Here are some answers
- ByPolk & Associates
- May, 07, 2020
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The coronavirus (COVID-19) pandemic has affected many Americans’ finances. You may have questions about the implications. For example, if your employer is requiring you to work from home, can you claim home office deductions on your tax return? Unfortunately, if you’re an EMPLOYEE who telecommutes, home office expenses aren’t deductible through 2025. What about unemployment compensation? Is it taxable for federal tax purposes? Yes. This includes state unemployment benefits plus the temporary $600 per week from the federal government. (Benefits may also be taxed for state tax purposes.) Contact us if you have questions or need more information about these or other COVID-19-related tax issues.
Subchapter V: A silver lining for small businesses mulling bankruptcy
- ByPolk & Associates
- May, 07, 2020
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Although bankruptcy obviously isn’t an optimal outcome for any small business, there may be a silver lining for those considering it: The Small Business Reorganization Act of 2019. This law, which took effect in February, added Subchapter V to the U.S. bankruptcy code. Its purpose is to streamline the reorganization process for small businesses and, in some cases, improve their odds of recovery. Subchapter V originally applied only to companies or proprietors with less than about $2.7 million in debt. However, the Coronavirus Aid, Relief, and Economic Security Act temporarily raised this amount to $7.5 million in debt. We can help you choose the most prudent path forward for your company.
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