4Thought Blog

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.

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.

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.

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.

Under today's federal income tax rules, your business may be able to claim big first-year depreciation write-offs for eligible assets that are placed in service in the current tax year.

But that strategy might not be right for every small business every year. Here's what you should know before claiming 100% first-year bonus depreciation or first-year Section 179 deductions.

Purchases of new and used business vehicles may qualify for tax breaks under current tax law.

If you need a new vehicle to use for business purposes, review these details before you go shopping. Some vehicles may qualify for bigger deductions than others.

The second half of 2020 has begun. What steps can small business owners take today to lower taxes for the current tax year?

Alternatively, would it make more sense to maximize taxable income this year if you expect higher income and/or unfavorable changes to the tax law starting in 2021?

Many family businesses have been adversely affected by the novel coronavirus (COVID-19) pandemic.

But there's a silver lining: Proactive tax planning can help your family business take advantage of potential opportunities in the COVID-19 era.

Here are some tax-smart ideas to consider.  

The $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act delivers good news to individuals and businesses, including valuable tax-relief measures.

Some of that tax relief is retroactive. These provisions can affect 2018 and 2019 returns that have already been filed. One retroactive provision can, in some cases, go all the way back to 2013. Some taxpayers that file amended returns may receive a tax refund from prior years.

Here's a summary of four retroactive CARES Act provisions that can potentially benefit you or your business entity after amended prior-year returns have been prepared and filed.

Employers are scrambling to find ways to help their employees who are impacted by the novel coronavirus.

Help is available. Now that the COVID-19 has been declared a national emergency, Internal Revenue Code Section 139 can be used to allow employers to make tax-free payments or reimbursements to employees as “qualified disaster payments.”

Below are some frequently asked questions about how employers can use Section 139 immediately to help employees cope with COVID-19.