4Thought Blog

4thought graphic - blog 2020

IRS Confirms: No Deduction for Expenses Paid with Forgiven PPP Loans

Posted by Concannon Miller on Wed, Dec 2, 2020

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.

Read More

Topics: 2020 Coronavirus

PPP Loans: The Latest on What Qualifies and What’s Taxable

Posted by Andrew Desiderio on Thu, Oct 29, 2020

Paycheck Protection Program loans have now been around for seven months, and in that time, there have been many major rule changes and clarifications.

As your business works to prepare your forgiveness application and get your books in order for year end, here are the latest qualification changes and rules on tax deductibility you should know.

Read More

Topics: 2020 Coronavirus

Seeking Debt Forgiveness? Tax Implications to Consider in the COVID-19 Era

Posted by Concannon Miller on Thu, Sep 24, 2020

In the COVID-19-ravaged economy, debts can pile up beyond a borrower's ability to repay. Lenders sometimes may be willing to forgive (or cancel) debts that are owed by certain borrowers.

While debt forgiveness can help struggling borrowers survive financially, it can sometimes trigger negative tax consequences. Here's what borrowers need to know about the tax implications of so-called "cancellation of debt" (COD) income.

Read More

Topics: Business tax planning, Individual tax planning, 2020 Coronavirus

Should You Defer Your Employees’ Social Security Taxes? New Info from the IRS

Posted by Lainie Smith on Wed, Sep 2, 2020

The IRS last week provided additional clarity how employers can defer withholding and remitting employees’ Social Security taxes in response to President Trump’s executive memorandum.

We still recommend our clients continue to withhold and pay the tax. This deferral is ripe for problems for both the employee and employer.

For employers interested in learning more about the option, here is the new guidance from the IRS:

Read More

Topics: Business consulting, 2020 Coronavirus

Deferring Employee Social Security Taxes: Considerations for Employers to Weigh

Posted by Concannon Miller on Tue, Aug 18, 2020

President Trump issued an executive memorandum on August 8 to defer the employee's portion of Social Security tax obligations for many workers. The deferral will last from September 1, 2020, through December 31, 2020.

What, if anything, should employers do to comply with the order by the September 1 deadline? The answer depends on impending guidance from the U.S. Department of Treasury.

Read More

Topics: Business consulting, 2020 Coronavirus

SBA Makes Further Changes To PPP Rules in New FAQs

Posted by Concannon Miller on Mon, Aug 17, 2020

The U.S. Small Business Administration has issued further guidance on Paycheck Protection Program loans with new comprehensive frequently asked questions.

The new 10-page document answers 23 FAQs, including on loan forgiveness payroll costs, nonpayroll costs and forgiveness reductions.

The full FAQ document can be accessed here. Here are some highlights:

Read More

Topics: 2020 Coronavirus

Pandemic Recovery Tips for Nonprofits: How to Reprioritize Objectives

Posted by Concannon Miller on Tue, Aug 11, 2020

Several months into the COVID-19 crisis, most nonprofit organizations have formulated at least temporary plan for sustaining operations. But short-term solutions should be complemented by long-term strategic planning that reprioritizes objectives.

Specifically, your nonprofit needs to focus on three areas: social impact, economic viability and capacity to deliver. Let's take a look.

Read More

Topics: Nonprofit Organizations, 2020 Coronavirus

SBA to Start Accepting PPP Loan Forgiveness Applications

Posted by Concannon Miller on Wed, Jul 29, 2020

The U.S. Small Business Administration (SBA) has announced it will start accepting Paycheck Protection Program (PPP) loan forgiveness applications starting Aug. 10.

The SBA issued new loan forgiveness applications in June. You can read more about the two application options and access them in our previous article.

Borrowers are tasked with preparing the forgiveness application and submitting it to their lender. Borrowers also are responsible for calculating the specific forgiveness amount.

Read More

Topics: 2020 Coronavirus

5 Ideas for Reskilling Your Manufacturing Workforce Amid the COVID-19 Crisis

Posted by Concannon Miller on Thu, Jul 9, 2020

The COVID-19 crisis has probably changed your business operations. For example, in response to the crisis, you might need to alter your company's production line, cleaning and scheduling practices, supply chain partners, distribution methods and even product offerings.

Whether these changes are temporary or you're using recent product and operational shifts as blueprints for the future, you'll likely need to retrain or "reskill" workers.

Even before the pandemic, rapid technological advances made retraining workers necessary for many manufacturers. Perhaps you've already invested considerable time and money ensuring employees are proficient using the most innovative equipment. But if your business model is changing and you want it to be successful, you'll likely need to send workers back to "school."

Read More

Topics: Manufacturing, 2020 Coronavirus

Tax Relief for Rental Real Estate Owners with COVID-19 Crisis Losses

Posted by Concannon Miller on Tue, Jul 7, 2020

Economic fallout from the COVID-19 crisis will cause many rental real estate properties to run up tax losses in 2020 — and possibly beyond. Here's a summary of important federal income tax rules for such losses.   

What You Can Write Off

Rental property owners can deduct mortgage interest and real estate taxes. They can also write off all standard operating expenses that go along with owning rental property. Examples include:

Read More

Topics: Construction & Real Estate Development, 2020 Coronavirus

Subscribe for more Timely Tips for Businesses

Recent Posts