CARES ACT/COVID-19
Employee Retention Credit Offers a Payroll Tax-Savings Opportunity for Construction & Real Estate Companies
Construction and Real Estate businesses have a lot to consider as they prepare to file their 2021 taxes. One of which is the Employee Retention Tax Credit (ERC), a payroll tax credit rather than an income tax credit. It’s not too late to claim the ERC, a fully refundable tax credit for qualified wages that…
Read MoreThe Advance Child Tax Credit Explained
On July 15th, 2021, eligible parents automatically began receiving advance Child Tax Credit payments from the federal government. It is important taxpayers know the implications of this credit. The Advance Child Tax Credit Explained The Advance Child Tax Credit allowed eligible taxpayers to receive 50 percent of their credit in equal monthly installments starting in…
Read MoreState and Local Tax Considerations for Remote Employees
When the Covid-19 pandemic started, most businesses went virtual. One of the unintended consequences of this shift is the effect it had—and continues to have–on how and where remote employees pay state and local income taxes. Some states adopted special “Covid-19 rules” that suspended or adapted the way they typically tax remote workers, but those…
Read MoreFederal Tax News
1. Parents of College Age Children May Qualify for a Tax Credit For purposes of the Child Tax Credit for the 2021 tax year, a qualifying child is one who doesn’t turn 18 before January 1, 2022, and who satisfies certain other conditions. Taxpayers who don’t qualify for the Child Tax Credit because their children…
Read MoreThere’s Currently a “Stepped-Up Basis” If You Inherit Property — But Will It Last?
If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. The current rules Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. So,…
Read MoreFederal Tax News
1. The Per Diem Rates for 2021-2022 Are Announced The IRS has announced the special per diem rates, which are effective Oct. 1, 2021. Taxpayers may use these per diem rates to substantiate the amount of expenses for lodging, meals and incidental expenses when traveling away from home. An employer may pay a per diem…
Read MoreMaking Long-Term Decisions About Working From Home
It can be a tough scenario to confront: First you sent your employees home to work remotely due to the COVID-19 pandemic. Now they want to stay there permanently. Should you allow employees to work from home more than they have in the past? Or do you think “This just isn’t working” for one or…
Read MoreFollowing Up on Coronavirus-Related Distributions from IRAs
If you were adversely affected by the COVID-19 pandemic, you may have taken a tax-favored coronavirus-related distribution (CVD) from a traditional IRA last year. This privilege was allowed under the CARES Act, which was signed into law on March 27, 2020. What steps can you take now to achieve the optimal federal income tax results? CVD…
Read MoreDeadline Coming: Follow Up on Your PPP Loans
Paycheck Protection Plan (PPP) loans were a lifeline for many small business owners during the worst of the pandemic-driven economic slowdown. In total, the Small Business Administration (SBA) approved nearly 12 million PPP loans, averaging $67,000. The PPP program stopped accepting loan applications on May 31, 2021. However, you still may need to complete the…
Read MoreIRS Issues Guidance on Claiming the Employee Retention Credit (ERC)
IRS Guidance on the Employee Retention Credit Provides guidance on the employee retention credit available under section 3134 of the Internal Revenue Code (Code), enacted by section 9651 of the American Rescue Plan Act of 2021 (the ARP), Pub. L. No. 117-2, 135 Stat. 4 (March 11, 2021), which provides a credit for wages paid…
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