News you can use
Student Loan Payment Freeze extended through January 2022
The government is giving a final extension of payment for all loans owed by the Education Department maintaining a 0% interest rate and keeping in place a freeze on the collection of debt. Payments will be coming due on February 1, 2022. Recently there has been a lot of push on Biden’s administration, suggesting that prolonged extensions of student loan payments are not necessarily a solution to the currently struggling population. They believe a real help would be for a part of the student loan (up to $50,000) to be forgiven and not just deferred. What will actually happen remains to be seen.
Employee Retention Credit (ERC)
Originally, businesses that received Payroll Protection Program funds (PPP) were not eligible to claim any of the Employee Retention Credit. However, the most recent update of the law suggests that this is no longer correct. Currently, even though your business received PPP funds, you may still be eligible for an employee retention credit which would be claimed on Form 941 for Q3 & Q4 of 2020. Those changes were made in July of 2021 to be retroactively effective for the businesses that operated and paid wages after March 12, 2020, and before July 1, 2021. Please reach out if you need help or more details.
Cryptoassets - IRS Update
The IRS is making progress with issuing more guidance on reporting of cryptoassets sales. For federal tax purposes, cryptoassets are treated as property, and general tax principles of property transactions apply. Essentially, the sale or exchange of cryptoassets results in a gain or loss based on the difference between the fair market value of the cash or property received in exchange for the cryptoasset and taxpayers’ adjusted basis in their cryptoasset. If you have bought or sold any cryptoassets, make sure you provide this information to your tax preparer. I believe in 2021 there will be a question on the tax return where clients will have to attest if they have bought or sold any cryptoasset in a given year. The IRS is slowly grasping on crypto exchange and in the future this form of transaction will become more monitored and regulated. An interesting fact: On June 9, 2021, El Salvador adopted Bitcoin as a legal tender in the country. Bitcoin will not replace the US dollar as El Salvador’s official currency; however, a foreign country adopting bitcoin as legal tender could affect the IRS’s current views around tax classification of cryptoassets.
Dragana's World
Weird Habits
Do you all have any weird habits? One of my weird habits is eating mayonnaise with Pizza 😝 . I am going to share an unusual habit of my little fuzzy dictator Dixie (Pomeranian). Around 11pm every night Dixie comes to bed with me and politely requests her kibble to be served in a tennis ball (yes, we had to pierce a tennis ball to be able to stuff it with kibble) along with a glass of water. This pup will not eat her kibble out of bowl or drink her water out of bowl. It all must be her way or the highway. All this started whenever Douglas, my husband worked night shifts a few years back. Up to that point all three of our fur kids would go to sleep to their designated area in our bedroom. However, once I was by myself at night, I started taking the best-behaved, Dixie, to bed with me for company. We would watch TV, snack on different food, of course I would drink some water and then after I was done drinking, I would share my water (glass) with Dixie. The first night Douglas stopped working night shifts, we went to bed and I asked that he leave Dixie out with us, which he did. Dixie started crying and Douglas was wondering what is happening as she would never cry. Well, I had to explain that he needs to get up and get her the tennis ball with kibble and her glass of water... A few years latter we are having the same routine every night. Dixie stays in bed for about 15 minutes, eats her kibble and drinks her water and then she goes nite nite. Below is a link to an article that talks about interesting habits that President Biden has.
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E-mail: dragana@dcmtax.com
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