Tax & Accounting Update
$6,750 at birth could be $1 million at retirement age
Bill Ackman, the Parish Square Capital Management chairman, suggests that US government give each child at birth $6,750 in a government funded basket of index funds that could only be tapped at retirement. With an average growth rate of 8% each year, the individual would have 1 million dollars at retirement age. Could this be a good alternative to Social Security that is currently in place? For full article click on the link below.
Payroll Protection Program (PPP) - Update
The issue of deductibility of the expenses paid for with PPP loan funds continues. The appeal has been sent to Congress to ask them to reconsider their decision that was issued earlier this year, where all of the qualified expenses paid for with PPP funds were not deductible. The Congress has been called to act before the end of 2020. For more information click on the link below.
COVID- Related Provisions coming to an end
More than a dozen economic relief provisions from COVID related bills are expiring at the end of the year, which ones will get extended stays is to be seen. In the next couple weeks, we will find out which one of the provisions will be extended. For more details click on the link below.
Internal Revenue Service Releases 2021 Tax Rates
Internal Revenue Service has released 2021 tax rates, standard deduction amounts, and other thresholds that will be applicable to fillers of 2021 tax returns. I would like to emphasize the Long Term Capital Gain tax rates (0%, 15% and 20%). Keep in mind that you can have an income of up to $80,800 (Married Filing Jointly) and not be taxed on any long-term capital gains that you have recognized during the year. For more details on rates and other 2021 thresholds please click on the link below.
Dragana's World
Interesting facts about my home country
Here are some interesting facts about my home country, Bosnia & Herzegovina. Bosnia was part of Yugoslavia but gained its independence in 1992. It has a very interesting and diverse history, with unique places and people. Three presidents, three nations, three languages but one country. Check it out by clicking on the link below.
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