As year end approaches, it’s a good idea for calendar-year entities to review the guidelines for recognizing revenue and expenses. There are specific rules regarding accounting cutoffs under U.S. Generally Accepted Accounting Principles (GAAP). These companies must use the accrual-basis… Read More
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Full-Time Equivalent Employee (FTE) Calculation
Before beginning your full-time equivalent (FTE) calculation, you must determine the headcount or number of FTEs you had during your reference period. The actual loan forgiveness amount you receive may be less depending on whether your average weekly number of… Read More
FTE Reduction Exemptions for PPP Loan Forgiveness
There are a few situations where borrowers are exempt from reductions in loan forgiveness based on reductions in full-time equivalent (FTE) employees. The first of these FTE reduction exemptions which can be found at the bottom of page 3 of… Read More
Completing Your PPP Loan Forgiveness Application
The process of completing the Paycheck Protection Program (PPP) loan forgiveness application can seem intimidating, but it doesn’t have to be. You have three application form options: Form 3508S, Form 3508EZ, and Form 3508. Here’s a brief overview of the… Read More
IRS Allows Salt Cap Workaround for Pass-Through Entities
The IRS has issued Notice 2020-75 that addresses state and local income taxes imposed on pass-through entities such as partnerships and S corporations. The Tax Cuts and Jobs Act (which went into effect for tax years starting 1/1/18) limited the… Read More
2020 Tax Saving Strategies for Businesses
If you own a business, consider the following tax saving strategies to minimize your 2020 tax bill. Net Operating Losses (NOLs) The CARES Act temporarily eased up on many of the NOL limitations implemented under the Tax Cuts and Jobs… Read More
SBA Issues Loan Necessity Questionnaires for PPP Borrowers With Loans of $2 Million or More
The Small Business Association (SBA) released two loan necessity questionnaires (one for nonprofit businesses and one for for-profit companies) to go to Paycheck Protection Program (PPP) borrowers who, together with their affiliates, received PPP loans totaling $2 million or more…. Read More
2021 Inflation Adjustments & Tax Tables
The IRS has issued the 2021 annual inflation adjustments for may tax provisions, along with the 2021 tax rate tables for individuals, trusts and estates (Rev. Proc. 2020-45). Here are the inflation adjustments to be used to prepare tax year… Read More
Maryland Strong Economic Recovery Initiative
On Friday, October 23, Governor Larry Hogan announced the $250 million “Maryland Strong: Economic Recovery initiative,” which provides funding from the state’s Rainy Day Fund to assist small businesses, restaurants, arts organizations, entertainment venues, and Main Streets struggling amid the… Read More
Individual Tax Planning Strategies for 2020
Here are a few individual tax planning strategies to consider as 2020 comes to a close. Take Advantage of the Generous Standard Deduction Allowance For 2020, the standard deduction amounts are $12,400 for singles and those who are married filing… Read More