Category: Tax Laws

No Stress magnetic words

California Storm Victim Tax Relief Update – Another Postponed Tax Deadline

The Internal Revenue Service issued another announcement that postpones the tax filing and payment deadline for most California taxpayers to November 16, 2023. The postponement applies to 55 of California’s 58 counties – except for Lassen, Modoc and Shasta counties. The California Franchise Tax Board confirmed that most Californians have until November 16, 2023, to

Read More »
California silhouette and mailbox

IRS Balance Due Notice Update

Attention California Storm Victims If you received an IRS CP14 notice in the mail, please disregard any information pertaining to balances due within 21 days. Tax payments are not due until October 16 for qualifying California storm victims per the federal and states disaster relief provisions. The IRS acknowledges the error and sent this follow-up

Read More »
Silhouette of recruitment candidate in the spotlight with other candidates looking on.

Hiring? You may be eligible for a valuable tax credit, the WOTC

As an Equal Opportunity Employer, you may find that your generosity has its rewards. Both taxable and certain tax-exempt employers in the U.S. and certain territories can now take advantage of a new credit. If you need to hire, be aware of a valuable tax credit for employers hiring individuals from one or more targeted

Read More »
Homes in rainstorm

IRS Updates Tax Relief Again for California Storm Victims

On February 24, 2023, the Internal Revenue Service announced that disaster areas in California (and parts of Alabama and Georgia) now have until October 16, 2023, to file various federal individual and business tax returns and make tax payments.  Previously, the deadline had been postponed to May 15 for these areas. Please see our February

Read More »

Update to IRS Tax Relief for California Storm Victims

The Internal Revenue Service issued another announcement that updates and expands the relief period for California storm victims to file their tax returns and to make tax payments. Please see our previous article for more information! View Article The relief period now applies to filing deadlines and tax payments that fall on or after December

Read More »
Home by the ocean

What a difference six months can make

Did you know that you could help your family save money on their federal estate tax bill by asking your executor to choose an alternative valuation date? An alternate valuation date can reduce estate tax liability If you have money invested in the stock market, you’re well aware of potential volatility. Needless to say, this

Read More »
California homes in storm

IRS Provides Tax Relief for California Storm Victims

On January 10, 2023 (and updated on January 11, 2023) the Internal Revenue Service announced that California storm victims now have until May 15, 2023, to file various federal individual and business tax returns, and make tax payments. On January 13, 2023, California announced conformity to the IRS extended May 15 filing and payment deadlines

Read More »
Solar powered apartment building

Business Energy Credit Impacted by Inflation Reduction Act

The Inflation Reduction Act (IRA) signed into law by President Biden on August 16, 2022, included an expansion of existing tax credits to promote clean energy generation. One of the credits impacted by the IRA is the business energy credit for solar property under Internal Revenue Code (IRC) Section 48(a)(3)(A)(i). The changes to the IRC

Read More »
Charging electric vehicle

Small Business Tax Planning for 2022 and Beyond

We are seeing fewer unfavorable tax law changes for 2022 related to non-corporate small businesses. In fact, there are several favorable opportunities under the Tax Cuts and Jobs Act of 2017 (TCJA), the CARES Act and the Inflation Reduction Act (IRA) that you should discuss with your tax advisor. Note: With an additional $80 billion

Read More »
Hot air balloon

IRS Announces Inflation Adjustments for 2023 Tax Year

Because inflation is high, many IRS inflation adjustments for 2023 will change more than they have in recent years. In the IRS Revenue Procedure 2022-38, it details these amounts. The following chart shows how these adjustments compare to amounts for 2022. Refer to these changes for your individual tax planning.   In addition, the Social

Read More »
Person holding money

2022 Year-End Tax Planning for Individuals

Ever since the Tax Cuts and Jobs Act of 2017 (TCJA) basically doubled the standard deduction amounts for many individual taxpayers, more households are opting for the standard deduction. For this year, the standard deduction allowances are: $12,950 for single people and married individuals filing separate returns, $19,400 for people who use head-of-household filing status,

Read More »
US Capital Building

Tax Planning for The Inflation Reduction Act

The $740 billion Inflation Reduction Act signed into federal law in August 2022 contains many tax breaks while raising revenue through a new minimum tax on large, profitable corporations and an excise tax on stock buybacks. It is intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement

Read More »
Employees having a group discussion

Take Advantage of Tax Breaks for Small Businesses

Some significant tax breaks may be available to smaller and medium-sized businesses that aren’t available to larger enterprises. Here are three examples you should consider when filing your taxes for 2021 and planning for 2022. 1. QBI Deduction The qualified business income (QBI) deduction was a centerpiece of the Tax Cuts and Jobs Act (TCJA).

Read More »

Important Tax Figures for 2022

The Internal Revenue Service announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2021-45 provides details about these annual adjustments. The following table provides some important federal tax information for 2022, as compared with 2021. Some of the dollar amounts

Read More »
Row of low income housing units.

IRS Extends Temporary Relief for Late-leased Units

Notice 2022-05 released by the Internal Revenue Service (IRS) on January 10, 2022 provided extensions to various compliance deadlines for low-income housing projects claiming credits under Internal Revenue Code (IRC) Section 42. Prior to the release of Notice 2022-05, the IRS had provided temporary relief in its Notice 2021-12. However, due to the ongoing COVID-19

Read More »

IRS Notice 2022-05 Extends Compliance Deadlines for LIHTC Projects

In response to the ongoing COVID-19 pandemic, the IRS has issued Notice 2022-05 on January 10, 2022 to extend temporary relief from certain requirements under the Internal Revenue Code (IRC) Section 42 for qualified low-income housing projects.  For relief that was provided before this recent IRS notice, please refer to our 1/25/21 blog “IRS Notice

Read More »
Family sitting on the floor of new apartment with moving boxes around them.

IRS Guidance On Minimum 4% LIHTC Rate

On December 1, 2021, the Internal Revenue Service (IRS) issued guidance on the minimum 4% low-income housing tax credit (LIHTC) rate. Revenue Ruling (Rev Rul) 2021-20 clarifies when the 4% floor applies to projects receiving housing credit allocations or tax-exempt bonds. Revenue Procedure (Rev Proc) 2021-43 provides safe harbors for determining whether an exempt bond

Read More »
US Flag with roll of bills on top of it.

PPP Update: Timing and Tax Effects of PPP Loan Forgiveness

On November 18, 2021, the Internal Revenue Service (IRS) issued a series of three revenue procedures (Rev Proc) to address various tax issues relating to PPP loan forgiveness.   Rev Proc 2021-48 addresses the timing of receipt of PPP forgiveness tax-exempt income. Taxpayers may treat amounts that are excluded from gross income (i.e., tax-exempt income) as

Read More »

PPP Update: SBA Drops PPP Loan Necessity Questionnaire

After numerous trade organizations challenged the legality of the U.S. Small Business Administration’s Paycheck Protection Program (PPP) Loan Necessity Questionnaires, the SBA announced this month that it is dropping the requirement for loan necessity review for PPP loans of $2 million or larger. The questionnaires were an additional step to collect supplemental information to evaluate

Read More »
Modern apartment complex.

IRS Guidance to Change Depreciation Method for RPTOB

On June 17, 2021, the IRS released Revenue Procedure 2021-28 and Revenue Procedure 2021-29 that provide guidance for an electing Real Property Trade or Business (RPTOB) to conform to the use of a depreciation recovery period of 30 years under the Alternative Depreciation System (ADS) for residential rental property placed in service before January 1,

Read More »

PPP Update: Deductibility of Eligible Expenses on California Returns

California Governor Gavin Newsom signed Assembly Bill 80 (AB 80) on April 29, 2021 to allow certain businesses to deduct their eligible expenses that were paid with forgiven Paycheck Protection Program (PPP) loans. Prior to this new legislation, California did not allow a tax deduction of eligible expenses paid with forgiven PPP loan funds. California

Read More »

Business Energy Credit Impacted by the Consolidated Appropriations Act

The Consolidated Appropriations Act of 2021 (CAA), signed into law by President Trump on December 27, 2020, included extenders to extend tax provisions related to various energy credits. One of the extended credits is the business energy credit under Internal Revenue Code Section 48(a) for solar property. Credits for solar property are commonly seen in

Read More »

Consolidated Appropriations Act Changes the ADS Depreciable Life

The Consolidated Appropriations Act, 2021 (CAA), signed into law on December 27, 2020 by President Trump, included provisions that shorten the depreciable life under the Alternative Depreciation System (ADS) for pre-2018 residential real estate for an IRC Sec. 163(j)(7)(A)(ii) electing real property trade or business.  For residential real estate placed in service prior to January

Read More »

Temporary Relief for Late-leased Units in LIHTC Projects

Notice 2021-12 released by the Internal Revenue Service on January 15, 2021 provided various extensions and modifications to the requirements for low income housing tax credits under Internal Revenue Code (IRC) Section 42. Please refer to our earlier blog, IRS Notice 2021-12 Provides LIHTC Relief and Extends Deadlines.   One modification in Notice 2021-12 that

Read More »

IRS Notice 2021-12 Provides LIHTC Relief and Extends Deadlines

The Internal Revenue Service issued Notice 2021-12 on January 15, 2021 to grant relief and to extend deadlines for various Low-Income Housing Tax Credit requirements.  Here is a summary of the relief and extensions. Operational relief for the period from April 1, 2020 to September 30, 2021: Building owners are not required to perform income

Read More »

Paycheck Protection Program (PPP), Round 2

On December 27, 2020, the Consolidated Appropriations Act, 2021 (CAA) was signed into law.  It contains extensions and expansions of the Paycheck Protection Program (PPP), a program included in the Coronavirus Aid, Relief and Economic Security (CARES) Act that allows eligible employers to obtain forgivable loans for certain payroll and non-payroll purposes. The PPP loan

Read More »

COVID-19 Relief Bill Includes 4% Housing Credit Floor Rate

The passage of the new COVID-19 relief bill (Consolidated Appropriations Act, 2021) by Congress on December 21, 2020, which was signed into law by President Trump on December 27, 2020, includes legislation that amends Internal Revenue Code Section 42. This new bill sets a minimum 4% housing credit rate for new and existing buildings that

Read More »
The capital building in Washington DC at dusk.

COVID-19 Relief Bill Clarifies Deductibility of Expenses Paid with PPP Loans

On December 21, 2020, Congress finally passed a new COVID-19 relief bill (Consolidated Appropriations Act, 2021) which President Trump signed into law on December 27, 2020. The bill includes clarification of the deductibility of certain eligible expenses paid with forgiven Paycheck Protection Program (PPP) loans.  The bill now permits taxpayers who receive PPP loan forgiveness

Read More »

New IRS Guidance: Non-Deductibility of Expenses Paid with PPP Loans

The Paycheck Protection Program (PPP) created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act provides loan funds to small businesses in order to help them pay eligible expenses (payroll costs, mortgage interest, rent, and utilities).  These covered loans are to be fully forgiven and not to be treated as income to the loan

Read More »

Subscribe to Our Newsletter

Talk to a CPA, Today