Starting a new business and wondering how and when tax deductions will occur? Most important to know is that most expenses incurred before a business begins cannot be deducted or amortized until the year the business becomes active. Business Expense Basics Section 162 of the Internal Revenue Code allows current deductions for so-called ordinary and necessary business expenses. Section 162 …
To fund a family and economic security initiative, President Joe Biden outlined a proposal for individual tax increases totaling $1.5 trillion. While much of the proposal is consistent with what he delineated during his presidential campaign, there are several noteworthy differences. Biden’s major tax increase proposals include: Raising the top individual rate to 39.6% Raising the top capital gains rate …
Individuals who are eligible for federal income tax credits can significantly lower their tax obligations. Here are five major credits for you to consider for your 2020 tax return. 1. Higher Education Credits The tax law gives parents a choice between two possible tax credits for higher education expenses: American Opportunity Tax Credit (AOTC).With the AOTC, the maximum annual credit …
PPP Background: Anticipating the economic consequences of the COVID-19 pandemic, the Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March. As a result of this passage, the Payment Protection Program (PPP) afforded a significant loan to small businesses. In its initial stipulation, Congress assured that, in addition to forgiving the principal amount of the loan …