Tax & Accounting Update
Payroll Protection Program (PPP Loan)
A PPP loan is believed to be free money by many people, but it may not be free because of tax purposes. The amount of the PPP loan that a business receives is used to pay qualified expenses including: payroll, mortgage interest, rent, utilities etc. A business should know that after all they may not be able to claim a deduction for all those expenses. If the loan is forgiven, businesses will be able to exclude PPP loan from its income, but the same amount that was excluded will be required to be added back for denied business expenses. The last update on this topic came out on August 5, 2020. Most likely, there will be more updates by the end of the year as the AICPA along with more than 170 business and trade organizations have joined asking congressional leaders to allow businesses to write off expenses paid for with PPP loans that have been forgiven. What the final outcome is remains to be seen.
Louisiana Mainstreet Recovery Grant
Louisiana is giving up to $15,000 in grant money to small qualifying businesses. Some of the eligibility requirements are, businesses must be domiciled in Louisiana as of March 1, 2020, and business must have suffered an interruption. The deadline to apply for this grant is November 4th. However, as soon as funds are gone the application process will be closed. If you did not apply yet, hurry up, the clock is ticking. You can obtain more details by clicking on the link below. P.S. If you have a business domiciled in another state, please be aware that other states have similar programs as well.
IRS Announces tax relief for Hurricane Laura victims
Federal Emergency Management Agency has recently added Caddo, Le Salle & St. Landy Parishes to the list of total twelve parishes that have been designated as disaster areas due to Hurricane Laura. Victims of Hurricane Laura have an extended deadline, the new deadline is December 31, 2020 to file various individual and business tax returns and to make tax payments. Please be aware that you must be in a declared disaster area to claim Casualty Losses for tax purposes. For more details please click on the link below:
Make sure you claim your $1,200 stimulus check before it's too late
According to the IRS there are about 9 million Americans who have not claimed their $1,200 check and the deadline for doing so is October 15th. If you still did not receive your stimulus check, I encourage you to visit the IRS website where you can register and check your payment status. For more details on steps you should take click on the link below:
Will there be second stimulus check?
As we are getting closer to Election Date and presidential debates begin this week, the House of Representatives could vote on the new proposal for the second stimulus check on October 2nd. For more details click on the link below:
Who counts as a dependent on your taxes, and what that means for a second stimulus check
If you did not have dependent at the time you filed your 2018 or 2019 tax returns the IRS will not automatically issue $500 dependent stimulus payment as they were not aware that there is a new dependent in your family. In this case you will be able to claim $500 credit on your 2020 tax return. For more details on who counts as a dependent for tax purposes please click on the link below:
Furry Friends
Pomeranians – smart, curious, energetic, feisty and bold
I have three furry kids: DeeDee (5 years, 15lb), Dixie (4 years, 10lb) & Dexter (4 years, 10lb). They are the best furry companions that I could have ever asked for. It is never quite in our house. They are full of energy and are ready to play from the moment they wake up. All three of them have a different personality, and that is what makes it remarkably interesting. DeeDee aka Fatuchini, is our first fury child who is very bossy. Dexter (in a picture above) is cool dude, always ready to pawty and always ready to get in trouble. Dixie is the princess in the house, always sits pretty and eats very slow. Dixie is the one who occasionally comes to work with me because princess always behaves good. Their favorite snacks are carrots and they love to go for a long walk. For those of you who like pups and are looking to get energetic furry friend, I would recommend getting a Pomeranian. I would be happy to get you in touch with those who can find you the cute, little, feisty friend. Feel free to write to me at dragana@chadgarlandcpa.com.
P.S. If you are looking for a CPA who will save you more time and money than they cost you, here are two ways we can get started:
1.Join my newsletter: current news from world of accounting & tax will be shared that you and your business can benefit from.
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