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PPP, Projections, and IRS Catches Terrorists - This is October's Reasonable Deductions

Posted by Sean M. Godwin Posted on Oct 09 2020

Reasonable Deductions

This summer has involved small business loan that could be forgiven for "free", $1,200 checks, and evolving campaign promises which has made our expertise relevant beyond our all-important April 15th. So, we want to weigh in on some of the recent current events and add some expertise to popular news. 

 

 

In the Highlight Reel:
The Reckoning of the Paycheck Protection Program

We've been following everything the SBA has released to ensure we stay informed about the PPP. The moral, it keeps changing. Still, many of those changes have been for the better. 

PPP Forgiveness starts in October for those who are already applying. But, with so many changes, many banks still have not opened their forgiveness process. 

Simplified Applications were just released yesterday by the SBA for those with loans under $50,000. How this will be implemented is yet to be seen. But, we are still confident that forgiveness should be much smoother for those who qualify.
 
10 Months of Payment Deferral 
is the new rule since the Flexibility Act passed in June. That means that your first payment won't be due until 10 months after it's dated, even if your loan agreement says otherwise.

24 Weeks is the PPP covered period we recommend for most of our clients. If you received the PPP, you can elect to use 24 weeks of payroll, rent, and utility costs instead of 8. For some of our clients who applied early, that 24 weeks ends starting in October.
 
 

Individual Matters:
The October 15 Deadline

This is a public reminder that the deadline to file a tax return on extension is October 15th. If you haven't completed your filing process, make sure to call our office today.

 

Planning April 15th rather than Enduring it

We are pretty excited about October 16th. It means that all of the 2019 returns are done and, more importantly, we can get started on 2020! That may sound too eager, but did you know that you could lower your tax liability significantly by developing a plan before 2020 is over? This is especially true for our Small Businesses and these will be our highest priority after Oct 15. If you participated in the PPP, your tax situation changed a lot, or you want to take more control, consider calling our office to schedule one now. 

 

To Your Credit

This last story is just some light, fun weekend reading involving taxes. If IRS agents systematically tracking down terrorists and seizing their funds sounds too wild to be true, read on. In this case, the IRS put its financial expertise to make a very different kind of deduction.

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