A draft of the Bipartisan Emergency COVID Relief Bill of 2020 includes several surprises. It does not include direct payments to American families, but it does include the following adjustments to The CARES Act..
It changes the expenses that can be used for forgiveness to include
1 – Damages from looting
2 – Costs associated with cloud computing
3 – Construction of sneeze guards and other safety precautions
The most radical change makes the expenses used for forgiveness again deductible on the 2020 income tax returns.
This would be an unprecedented modification, effectively providing a double dip deduction. If it passes, the PPP Loan would actually be free. You would not only be able to get the loan forgiven, but you would also get the deduction of the expenses used for forgiveness.
Interestingly enough, there is no income limitation on the bill. It provides the same double dip deduction to smaller and larger businesses. A part of me finds it difficult to believe that one party would actually vote for this provision, given their aversion to providing tax breaks to big business.
Another part of me has difficulties believing that the IRS would ever allow it. Please understand how tax law is written in this country. Congress passes something and the president signs it into law. At that point the IRS “interprets” the law. If the law is considered wrong, they either won’t enforce it, they send out a letter ruling negating it, or they let the tax court system nullify it.
I wouldn’t get excited if I were you. If this gets passed, we’ll see what happens.
Let me leave you with this.
I’m having some interesting new accounting and tax cases come to us for help. It’s amazing how many of our competitors don’t stay educated on the newest tax laws. We’re seeing returns with glaring mistakes, deductions that are illegal, or clients paying way too much in income and payroll taxes.
If you’re looking for an accountant who can protect you and your family, please contact me.
If you’re looking for an accountant who can legally save you the most money, please contact me.
If you’re looking for an accountant who actually cares about helping his clients, please contact me.
If you’re looking for an accountant who can help you get through these difficult times, please contact me.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd
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