News you can use
Build Back Better Act
Last Friday House of Representatives has passed the Build Back Better Act (BBBA). The bill now goes to the U.S. Senate where it will undergo a couple of weeks of assessment to make sure that all provisions of the bill qualify to be passed through the budget reconciliation process. The bill contains a variety of tax and non-tax provisions. Some of the provisions are as follow:
Tax Provisions
- SALT deduction cap would be raised from $10,000 to $80,000 through 2031
- Advance Child Tax Credit Payments would be extended beyond 2022
Non-Tax Provisions
- For weeks of paid leave benefit for caregiving leave (new parents, dealing with own medical condition, time off to care for loved one with a serious medical issue)
- 5$ billion in funding to support small businesses
- Affordable childcare – all families of four earning up to $300,000 would pay no more than 7% of their income on childcare.
For more details click on the link below.
Do I have to file business tax return?
A domestic partnership must file an informational tax return unless it neither receives gross income nor pays or incurs any deductions or credits for federal tax purpose. A domestic corporations (including S Corporations) must file an income tax return regardless if it had taxable income or not. For more details click on the link below.
What is gift tax exclusion?
You can give up to $15,000 to each of your friends, kids, grandkids this year without paying gift tax or tapping your lifetime estate gift tax exclusion. If you are married, your spouse can do the same, which means that you and your spouse can give to each of your relatives up to $30,000 ($300,000 total) this year in excludable gifts. If you gift over annual exclusion amount of $15,000 to one individual, you will be required to file gift tax return for 2021 but no gift tax will be due unless your total lifetime gifts exceed $11,700,000.
How to create a Business Plan
If you are just staring a business, one of the things to consider would be to create a business plan. Doing some pre-startup homework and crafting a business plan will make your life post start up a lot easier. Having a business plan forces you to think through all aspects of your start up and it will explain your business concept to those that will be looking to work with you (vendors, business partners, lenders etc.). Most of the businesses that are just staring up and looking for some of the SBA startup loans will be required to submit a business plan which will be used by the banks to determine if business outlook looks bright and if loans should be made. SBA has some great information on their website to assist those in a need of business plan. Also, they will do a free consultation with business owners to provide guidance on creating a business plan. Here is the link to SBA website for more details.
