For those who have been affected by the wildfire and could not file tax returns timely, you may be granted for penalty and interest waiver for late-filing and late payment. FEMA designated disaster area: https://www.fema.gov/disaster/4562
FEMA.GOV
4562 | FEMA.gov
Potential Tax Changes (Biden & Trump)
In the last few weeks, both Biden & Trump have released details on their potential tax changes. None of this information is law but it gives you insight into the direction of the potential tax policy in the next 2-4 years.
Biden’s Tax Plan (Potential)
1. Increase The Corporate Income Tax Rate to 28%
2. Impose 15% minimum tax on companies’ book income with credit for taxes paid to other countries for corporations with at least 100M in annual income
3. Double the minimum tax on the profits earned by foreign subsidiaries of US firms from 10.5% to 21%
4. Restore the top individual income tax rate to 39.6%
5. Phase-out small business income deduction above 400k
6. Tax capital gains as ordinary income for taxpayers with over $1M in income and tax unrealized gains at death
7. Cap itemized deductions (28% limit and Pease Limitation)
8. Increase the social security earnings cap
9. Establish first Time homebuyers and renters tax credits
10. Impose a financial risk fee on large banks
11. Increase the Child and Dependent Care Tax Credit
12. Various other smaller tax policy provisions
Trump’s Tax Plan (Potential)
1. Cut Taxes to Boost Take-Home Pay and Keep Jobs in America
2. "Made in America" Tax Credits
3. Expand Opportunity Zones
4. Tax Credits for Companies that Bring Back Jobs from China
5. Allow 100% Expensing Deductions for Essential Industries like Pharmaceuticals and Robotics who Bring Back their Manufacturing to the United States
More details are coming out with each party's plans and as we find out more, we will release it!
If you like to have a free assessment of your tax-saving opportunities, Let's set up a time to talk. https://calendly.com/udai
Source: https://joebiden.com/joes-vision/
Source: http://www.crfb.org/papers/understanding-joe-bidens-2020-tax-plan
Source: https://www.donaldjtrump.com/media/trump-campaign-announces-president-trumps-2nd-term-agenda-fighting-for-you
We are hiring a tax manager! https://hoshicpa.com/index.php/career/
Senate released a new bill called: Continuing Small Business Recovery and PPP Act
https://www.finance.senate.gov/imo/media/doc/SFC%20CARES%202.0%20Legislative%20Text.pdf?fbclid=IwAR3r-PKRbFtLjdTZR3S1y1s6u0YyzfmCb70-mzoR2ahyaZItvcnVGIb_kPc
FINANCE.SENATE.GOV
www.finance.senate.gov
7/15 deadline is closing down. You would like to submit an extension before it's too late!!
Hoshi CPA updated their phone number.
Hoshi CPA updated their phone number.
SBA Re-Opening Paycheck Protection Program to Small Lenders on Friday, January 15 and All Lenders on Tuesday, January 19
Lenders with $1 Billion or Less in Assets Will be Able to Submit First and Second Draw PPP Applications on Friday – Continuing Dedicated Access for Community-Based Lenders
http://bit.ly/3sn4vXU
SBA Announces It Will Restart PPP on Monday, January 11th
“To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans on Monday, January 11, and Second Draw PPP Loans on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.
This round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284B toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.”
Guidance on Minority Owned Businesses: https://www.sba.gov/sites/default/files/2021-01/Guidance%20on%20Accessing%20Capital%20for%20Underserved-508.pdf?fbclid=IwAR2wuITuHXOusIXqX4oHK97KquU3ikMg1CIcietiJAabjOlXLbUZurC6QU4
SBA.GOV
www.sba.gov
IRS Confirms & Offers Guidance on PPP Deductibility
As a result of the amendment made by § 276(a) of the Act regarding the Federal income tax consequences of covered loan forgiveness, the conclusion stated in Notice 2020-32, and the holding stated in Rev. Rul. 2020-27, are no longer accurate statements of the law. Accordingly, Notice 2020-32 and Rev. Rul. 2020-27 are declared obsolete as of the effective date of the amendment made by § 276(a) of the Act.
Source: http://ow.ly/Rb9K50D2Hzc
IRS.GOV
www.irs.gov
