Tax Updates
- Some taxpayers have started to receive their Economic Impact Payments
- The CARES Act also provided retroactive tax law changes, such as allowing improvements to nonresidential buildings to be eligible for bonus depreciation (the ability to be expensed 100% in one year), while reducing the number of years of depreciation from 39 to 15 years
- Business losses from 2018, 2019, and 2020 are eligible to be carried back up to five years and losses carried to 2019 and 2020 can now offset 100% of taxable income versus 80% previously
Paycheck Protection Program Info
- The PPP loans have reached their maximum in less than two weeks, and now we have to wait to see if there will be an increase to the limitation.
- So far, not one client has informed me that they received funds from the PPP
Adapting to the Situation
- We hear stories from our clients and others who are making changes to their businesses to help adapt and survive through this financially. Some changes include:
- Virtually serving clients and customers, when possible
- Creating new services that are in demand now
- Selling products online versus traditional retail
- It also appears that there is a renewed sense of putting things in perspective, focusing on what is important, not living just to work, and a general sense of community. I like those changes.
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