- You probably never thought of these as Qualifying Medical Expenses - February 3, 2021
- Who is Eligible for a Stimulus Check? - December 30, 2020
- It’s Not There Yet… But the New COVID Relief Could Mean to You - December 23, 2020
What you should know about the new stimulus bill passed by Congress?
1Although it hasn’t been signed yet by President Trump – it is expected to be approved by him.
2There is a renewal of the PPP loans. If you weren’t fast enough to get your PPP loan (if you were either an independent contractor in 2020 or had a business) you can get one now. In addition you can actually get a second PPP loan if you can show losses of 25% or higher in 2020 from 2019. NOTE: these loans can be fully forgiven if you use at least 60% of the funds for salaries or rent or utilities or mortgage interest on commercial buildings.
3Even better all expenses covered by the PPP loans will now be deductible. Up to now Treasury noted (correctly) that no expenses can be deducted that related to tax free money that the PPP loans produce. This would in effect be double dipping. However the new stimulus relief bill allows for the deduction for the expenses covered by the PPP loans even if the loans were forgiven.
4Even if you don’t qualify for a PPP loan you can get an economic development loan and grant from the SMall Business Administration (SBA). This even can apply to your investment real estate.
5You will receive up to $600 check per person in your family if each makes under $75000 single or less than $112.500 for married filing joint returns.. The payments phase out entirely for single people at $87000 and for married filing joint returns at 174000. These amounts are adjusted upwards if you have some dependents.
6There will be a a 11-week extension for unemployment insurance that will provide an extra $300 per week in unemployment. NOTE: workers with at least $5000 in self employment income may be eligible for an additional $100 per week benefit.
7Charitable contribution deduction extended and improved. Normally you have to itemize your deductions to deduct any charitable contributions. However if you make charitable contributions to a qualified charity of cash you can deduct up to $600 (for married filing jointly) or $300 for single taxpayers without having to itemize.
8The “Three Martini Lunch’ is back. If you have been attending my webinars – you know that business meals can be deducted at 50%. This includes snacks for staff and employees. However under the stimulus bill- this deduction has been increased to 100%. Take note that for a business meal to be deductible- you have to be with the prospect and talk business over the meal. Thus you would need to eat at the restaurant or take it out and eat the food elsewhere. Also documenting where you ate the meal and what you discussed and the name of the person entertained as well as the amount and date of the meal in Taxbot will be critical.there will probably be more details that we will alert you to. So stay tuned.
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