Tax Planning Issues for 2020
There were a number of C-19 relief laws passed earlier this year that are expiring at or near the end of the year. It doesn’t look like congress will be doing anything to extend them. The expiring provisions include
Unemployment Assistance
The expanded benefits for the self-employed, gig workers, and those with shorter work histories empires along with the extension on the normal period of receiving benefits.
Looser Caps on Interest Deductibility
The CARES Act temporarily reversed a portion of the TCJA by increasing the business interest deduction limit from 30% of taxable income to 50%.
PPP Loan Forgiveness Period
No matter when you received the loan, the forgiveness period ends with this year.
Employer Retention and Paid Sick Leave Credits expire at the end of the year.
The Employer Side Payroll Tax Deferral also expires.
Without new legislation, all of this will end.
The New Stimulus Deal faltered in Congress again yesterday. Any further negotiations were tabled until next week given the impending government shutdown. The current spending plan ends tonight at midnight. Frankly, at this point, it doesn’t look like anything is going to happen to avert another Federal Government closure. We’ll see.
Also, if you would like us to handle your payroll beginning at the first of the year, you’ll need to let us know now. It takes a couple of weeks for us to get everything set up. Please either sign and return the agreement that I have forwarded, or contact us today to get started.
Let me leave you with this.
Pfizer’s C-19 vaccine passed an important milestone last night when a panel of experts formally recommended that the FDA approve the drug. Those familiar with the proceedings have said that this approval is expected to be given tomorrow, pending any further delays.
I’ve been speaking to a number of my Brothers and Sisters doing their year-end tax planning. The overall mood seems to be that we’re all sick and tired of being sick and tired. Some are saying that they are just “so over” all of this.
As the kids listen to a popular song on Tic Tok named, “F*** 2020,” I wonder how I will remember this year. We’ve had a lot of bad, but there has also been plenty of good.
I guess it depends how you look at it.
As we come out of the pandemic, those of us who have considered this as an opportunity rather than a crisis have found new products and new services to offer our clients. Many have found new distribution channels and ways of selling their goods and services. Others have made physical changes to their premises which will continue to benefit them for years to come.
Sure, it’s been awful. Don’t act like I’m saying this was all wine and roses. It sucked and it isn’t over by a long shot. Once the pandemic ends we’ll still probably have a recession to traverse.
But if you were strong and tough enough to improvise, overcome, and adapt, then the lessons learned will last a lifetime.
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 ever anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
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