Regrettably, in the early weeks of the Stimulus plan, some banks anxious to help their customers would allow sole proprietors to apply with a simple 1099, or a profit and loss statement, or even a 2018 tax return. If any of these situations occurred to you, and ultimately received a PPP loan based on this information, it’s important you get professional advice immediately on how to move forward in the forgiveness stage and subsequent application.
However, this doesn’t mean taxpayers can avoid filing their tax return OR an extension by April 15th. The tax return is still due! It’s simply that taxpayers can wait to make payment on a certain amount of taxes for 90 days.
There are 10 key pieces of the legislation that can assist business owners in one form or another. Also, realize that the definition of a ‘small business owner’ encompasses a lot of people, including you. This means sole proprietors, LLC owners, S-Corp owner/shareholders, those with employees, those without, and remember this includes the ‘gig economy’ as it’s termed such as uber drivers and those selling on the web with a side hustle!
This new law requires certain employers to provide emergency paid sick leave in certain circumstances, as well as provide additional time off to employees under the Family Medical Leave Act who need to take care of a family member effected by the virus.
The Home Office Deduction is still alive and well…don’t let any accountant tell you otherwise. There are several strategies on how to maximize the Home Office Deduction. It is NOT high risk and every good business owners should take advantage of a home office write-off.
I truly believe that far too many business owners, CPAs and Tax Preparers are overly conservative and miss out on important expenses that we are entitled to.
Things have changed in 2018 when it comes to writing off meals and food expenses in your small business. Entrepreneurs, have to reevaluate their budget for the food and dining.
Choosing the State in which to set-up your corporation or LLC is actually a very straightforward decision. Don’t let someone talk you into setting up your new entity in Nevada, Delaware, Wyoming or Utah…just to name a few.
The new law first imposes a lower dollar limit on mortgages qualifying for the home mortgage interest deduction. Beginning in 2018, taxpayers may only deduct interest on $750,000 of new qualified residence loans ($375,000 for a married taxpayer filing separately), and the limits apply to the combined amount of all mortgage loans. Moreover, the extra $100,000 of home equity interest is gone entirely.