4Thought Blog

New federal guidance confirms bad news for businesses with PPP loans: You can’t deduct expenses paid with proceeds from a loan if it’s fully forgiven.

The IRS also warns you can’t deduct businesses expenses if you believe your loan will be forgiven. So for businesses considering waiting until 2021 to apply for forgiveness with the hope of deducting your 2020 business expenses, that’s also off the table if you expect your loan to ultimately be forgiven.

When a business is owned by more than one person, it's generally advisable for the owners to enter into a contractual agreement that prescribes what will happen if an owner dies, becomes disabled, retires or otherwise leaves the company.

Some market analysts predict that the COVID-19 crisis may trigger an increase in buyouts. For example, some struggling owners may decide to throw in the towel after months of teetering on the verge of bankruptcy. Or squabbling partners may disagree about the future of the business and decide to part ways.

So, now is a good time for owners to draft or update a buy-sell agreement. Here's a look at common valuation issues and potential pitfalls to avoid.

The CARES Act granted several valuable federal tax breaks for individuals and businesses. But most will expire at the end of 2020 or at the end of tax years that begin in 2020.

Here's a roundup of tax breaks scheduled to go off the books soon, unless Congress extends them.

If you're a general contractor, the business acumen and financial strength — or weakness — of a subcontractor can affect your ability to deliver a quality project on time and within budget.

Delays caused by a subcontractor's failure to complete work can lead to scheduling delays, cost overruns and even the dreaded "profit fade."

It's not always easy to identify unreliable subcontractors. A prequalification program can help you determine whether what looks like an ideal partnership is, in fact, a risky proposition.

President-Elect Joe Biden has expressed support for major changes to the current federal tax laws, though with control of the Senate still up in the air, it’s unknown which of his plans may come to fruition.

But it’s still wise to educate yourself on his plans, especially as you start working on year-end tax planning. Biden’s plans may mean rollbacks or revisions of several Tax Cuts and Jobs Act provisions.

When fraud strikes manufacturers, the effects can be devastating.

The median fraud loss in the manufacturing sector, one of the industries most affected by fraud, was $198,000, according to the 2020 Report to the Nations published by the Association of Certified Fraud Examiners (ACFE). That's significantly higher than the median fraud loss for all industries ($150,000).

Here are some other key findings from the latest biennial ACFE report:

It’s time to implement strategies to help reduce your 2020 federal income tax bill and position yourself for future tax savings.

Here are some ideas to consider before year end.

Small business owners still have time to make tax planning moves to lower their 2020 federal income tax bills — and possibly lay the groundwork to save taxes in future years.

Here are 10 ideas for small businesses to consider.

If your nonprofit's staffers can work from home during the COVID-19 pandemic, they probably are. But what about when the crisis ends?

As workers have become accustomed to remote work, many now prefer it. In fact, several recent surveys have found that approximately half of U.S. employees would rather work from home. This is particularly true of parents with younger children.

Many employers also like remote work. They're finding that employees are as productive — if not more productive — now. And if staffers remain at home after the pandemic ends, your organization may be able to break its office lease or sell its facility and save a bundle on operational costs.

Before you take that step, however, consider what the costs and risks may be.

It's the fourth quarter of 2020, and the COVID-19 pandemic continues to affect the construction industry. Project delays, work stoppages, supply chain disruption and lost productivity remain a reality for many contractors.

All of this makes planning difficult, particularly when drafting project contracts. To protect your business from liability in these uncertain times, be sure to include the following clauses in project contracts.