The U.S. Small Business Administration, which administers the Payroll Protection Program (PPP), began accepting loan forgiveness applications Aug. 10. Just two weeks later, the agency, in conjunction with the Treasury Department, released additional guidelines surrounding forgiveness of the pandemic loans designed to keep workers on payrolls. If you’re an owner and you thought you were clear on how to apply for PPP loan forgiveness, the SBA this week released another interim final rule that adds even more complexity to certain areas of forgiveness. Some of the new provisions could work in your favor—or against you—depending on your business type and

The Tax Cuts and Jobs Act modifies several provisions related to retirement plans and IRAs. These include the repeal of the special rule permitting recharacterization of Roth IRA conversions, an increase in the period during which a qualified plan loan offset amount may be rolled over, relief for qualified 2016 disaster distributions, and an increase in allowable amount of length-of-service awards Recharacterization of Roth IRA Contributions An individual who has made contributions to a Roth or traditional IRA may subsequently decide that a contribution to an IRA of the other type is more advantageous. If certain requirements are met, a

2018 Kilauea Volcanic Eruption and Earthquakes Disaster Declaration for Hawaii If you reside in or have a business in Hawaii County, Hawaii, you may be able to deduct the property losses you suffered as a result of the Kilauea volcanic eruption and earthquakes that began on May 3, 2018. You may qualify for disaster area tax relief on your 2017 or 2018 federal income tax return. We are here to help you at this difficult time. Tax benefits are provided to those who have suffered a loss due to the Kilauea volcanic eruption and earthquakes. Please contact us right away

Non-Profit Organization Policy Recommendations Between accounting standards, tax reform, fundraising, and program delivery, many not-for-profits (NFPs) are stretched to their limits. So, when it comes to creating or updating policies, it’s easy to push those tasks to the bottom of the list. Having strong policies in place, however, can protect your NFP from liability, help you adopt consistent and clear actions, and help you use your limited resources more efficiently. Sound policies can also help your governing board provide more effective oversight. Getting started is half the battle when it comes to creating or updating policies. The following steps can help you get the ball rolling. 1. Inventory the policies that

Considering buying a corporate aircraft? It isn't an easy decision, and we are available to help you figure out the non-tax impact of aircraft ownership (both financial and non-financial). But the purpose of today's blog is to set out the most significant tax rules affecting aircraft ownership. We think you'll be surprised by how favorable the rules are. Business travel only. In most cases, if your company buys a plane used only for business travel, the company can deduct its entire cost in the year that it is placed into service. The cases in which the plane is ineligible for

There are many changes to the estate and gift tax exemption made by the massive Tax Cuts and Jobs Act effective beginning in 2018 that will result in many fewer estates being subject to the 40% tax, and larger estates owing less tax. Before the Tax Cuts and Jobs Act, the first $5 million (as adjusted for inflation in years after 2011) of transferred property was exempt from estate and gift tax. For estates of decedents dying and gifts made in 2018, this “basic exclusion amount” as adjusted for inflation would have been $5.6 million, or $11.2 million for a

So you plan to donate to a charitable organization and "earmark" it and claim a charitable deduction. How does the IRS handle such “conduit contributions”? Generally, donors may earmark their contributions in various ways. But, depending on who has control, IRS may look beyond the immediate recipient to determine if the donee is a qualified charitable donee. “Conduit” contributions for noncharitable use. A gift to a qualified charity intended for noncharitable use may in some instances be deductible if the charity is the ultimate donee and not a mere conduit. The charity won't be treated as a conduit if it

The business use of websites is widespread, but IRS has not yet issued formal guidance on when Internet website costs can be deducted. Fortunately, established rules that apply to the deductibility of business costs in general, and formal IRS guidance that applies to software costs in particular (the “software guidelines”), provide a taxpayer launching a business website with some guidance as to the proper treatment of the costs. Here is a brief discussion of some relevant principles: The time for deducting website design costs (i.e., costs of the website's overall structure, functionality and appearance) depends on whether the costs are

If you're self-employed and work out of an office in your home, and if you satisfy the strict rules (discussed below), you will be entitled to favorable “home office” deductions—that is, above-the-line business expense deductions—for the following: the “direct expenses” of the home office—for example, the costs of painting or repairing the home office, depreciation deductions for furniture and fixtures used in the home office, etc.; andthe “indirect” expenses of maintaining the home office—for example, the properly allocable share of utility costs, depreciation, insurance, etc., for your home, as well as an allocable share of mortgage interest, real estate taxes,

The question of whether a worker is an independent contractor or employee for federal income and employment tax purposes is a complex one. It is intensely factual, and the stakes can be very high. If a worker is an employee, the company must withhold federal income and payroll taxes, pay the employer's share of FICA taxes on the wages plus FUTA tax, and often provide the worker with fringe benefits it makes available to other employees. There may be state tax obligations as well. These obligations don't apply for a worker who is an independent contractor. The business sends the

What's new that affects you? Changes in the tax law are here and we want to help you navigate the landscape. Contact us during our tax planning season (usually in early fall) to identify tax planning strategies to capitalize on opportunities within the new law. For some of you with higher income, the time may be now to discuss opportunities that may exist. Did you know? Due to the increase in the standard deduction and changes in itemized deductions, it is more important than ever to consider the timing of deductible expenses.The child tax credit has increased to $2,000 per

Making Taxes Simple...What we do at Professional Business Services is making what most people think of as sort of like going to the dentist (a painful experience) turn into a relaxing experience. For many, going to the dentist and getting your taxes done are painful experiences and many try to avoid it at all cost. But, we try to make it as easy as possible. We will help you understand what seems difficult and talk to you in simple, easy to understand terms. I, personally, enjoy everything about taxes: reviewing them to see if we can do better, preparing them,