Entries by admin

Families First Coronavirus Response Act: Credits for the Self-Employed

On March 18, 2020, the President signed the Families First Coronavirus Response Act (Coronavirus Response Act) which increases funding for various programs and addresses paid sick and family leave, including tax credits for employers and self-employed persons. The Coronavirus Response Act requires employers with fewer than 500 employees to provide paid leave to employees who […]

Three New Credits for Businesses Hit by COVID-19

Employers affected by COVID-19 have three important new credits available to them. Employee Retention Credit: The employee retention credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. […]

CARES Act: Depreciation of Qualified Improvement Property

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides tax relief to individuals and businesses in an effort to support the economy. In addition to numerous other provisions that provide cashflow to businesses, the CARES Act includes a modification to the recovery period for qualified improvement property. Under the CARES Act, a 15-year recovery […]

CARES Act: Above the Line Deduction for Charitable Contributions

The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers enhanced tax incentives for making charitable contributions for the 2020 tax year including an above-the-line deduction for individuals who do not itemize. In general, the itemized charitable deduction for any tax year is limited to a percentage of the taxpayer’s adjusted gross income (AGI). The […]

Federal COVID-19 Responses

The Coronavirus Aid, Relief, and Economic Security Act (a.k.a. CARES Act) was signed into law by President Trump on March 27, 2020.Here’s an overview of the programs that have been affected/created by the CARES Act and who is impacted by these changes:• Stimulus checks for individuals• Expanded unemployment benefits for workers• Student loan relief• Withdrawals […]

Holding Period for Capital Assets

Holding Period for Capital Assets Holding period makes the greatest difference in determining whether an asset is entitled to short-term or long-term capital gain treatment. At today’s rates, that can be the difference between being taxed at the highest ordinary income tax rate of 35% and the long-term capital gain rate of 15%. Although an […]

Glossary of Tax Terms

Glossary of Tax Terms Accelerated death benefits are benefits that can be paid from a life insurance policy to an insured who is terminally or chronically ill. If tax law requirements are met, the payment is treated the same as payments on account of the death of the insured (with a dollar limit applied in […]

Unemployment Compensation

Unemployment compensation generally includes any amounts received under the unemployment compensation laws of the United States or of a specific state. It includes state unemployment insurance benefits, railroad unemployment compensation benefits and benefits paid to you by a state or the District of Columbia from the Federal Unemployment Trust Fund. It does not include worker’s […]