Tax & Accounting Update
PPP Loan Forgiveness Update
A few days ago, Revenue Ruling 2020-27 came out to provide further guidance on whether payroll protection program loan participants that paid or incurred certain otherwise deductible expenses can deduct those expenses in the taxable year in which expenses were paid or incurred if at the end of taxable year the taxpayer reasonably expects to receive forgiveness of the covered loan. The conclusion is that a taxpayer who received a covered loan guaranteed under PPP who can reasonably expect to receive forgiveness of the covered loan regardless if they applied for forgiveness before the end of the taxable year or not, may NOT deduct those expenses that otherwise may be deductible. For more details please check the Rev Rul 2020-27 by the clicking on a link below.
Tax Topics Simplified
Tax & Financial Year End Planning
As we are approaching the end of the year business owners and self-employed individual should consider discussing different tax savings options with their CPAs and Financial Advisors before this year is over. Some of the options could be to purchase additional equipment or a vehicle on which you could take a bonus or 179 depreciation deduction and get dollar for dollar deduction and reduce your taxable income. Some other options could be related to reshuffling your investments to create a loss/gain that could be offset by some of the gain/loss from your businesses. Other plans may include contributing a larger amount for the last few paycheck to 401k or making contributions to HSA or other pre-taxed retirement plans. Those are just a few possible options that could help you save in taxes.
This year has been interesting to say the least. There have been some changes as a result of the Cares Act. If you have been affected by the Corona Virus there is the opportunity to take up to one hundred thousand ($100,000) distribution from your retirement accounts without paying early withdraw penalties. The distributions are generally included in income ratably over a three-year period starting with the year in which you receive distribution. If you put your money back in before the third year, you are allowed to amend your previous tax returns to reflect the new total distribution, and claim a refund of the tax attributable to the amount of the distribution that you included in income for those years.
Another thing to consider doing would be a Roth conversion. You can use this to help control your taxes during retirement. Some high-income earners call this a back-door Roth and do it many times over their working careers. This is just one tool you can use to benefit your retirement planning. However, there are many other things to think about when making this conversion. If you need any help, consult your financial planner or tax advisor on your best options. If you do not have one or want a second look, feel free to reach out to me or my husband Douglas Moran (Financial Advisor).
Dragana's World
My significant other
Douglas and I met my first semester (Fall 2007) at NSU at a party that was held by some of our mutual friends. After that, we stayed in touch over social media and in Spring of 2009 started dating. Douglas at that time was doing a master’s program at Mississippi College. He was studying medical science and was planning to go to medical school. However, over time plans changed and he decided to switch his career path over to finance. After my graduation we moved to Shreveport and shortly after got married in May 2012. Our wedding was in Bosnia (one of the wedding pictures is above). Douglas currently teaches anatomy and biology at Calvary High school in Shreveport and also has his own financial service business DM financial Group. Douglas has spent the past 9 years in the financial industry working for some of the biggest financial service companies. If any of you have any questions and would like to speak to him feel free to reach out to him at douglas@dmfinancialgroup.com
HAPPY THANKSGIVING!
Happy Thanksgiving Folks!
There are a lot of reasons to be thankful in this country full of great people and endless opportunities. I am personally thankful for all of the family and friends who make my life more enjoyable as well as my clients who keep me on my toes at all times. However, I love my job and If I could do it all over again, I would not change anything. Those of you traveling, please be safe on the road and do not forget our furry friends are our family as well, do not let them eat too much of goodies on Thanksgiving as their tummies could get upset. Below is the link to AKC where you can find a list of food that is not safe for your furry friends. Happy Thanksgiving!
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.
2.Work with me privately: Feel free to reach out to me and we can schedule a meeting to see what value I can bring to the table for you. My e-mail is: dragana@dcmtax.com