It’s a fact that taxpayers know well. Uncle Sam’s tax rules are not always clear. (A huge understatement!) But thanks to new government guidance, the rules governing PPP loan-forgiveness, for several types of business entities, are models of clarity. (More or less.) To be specific… the new PPP rules explain clearly how you can identify your personal (owner-employee) … [Read more...]
Tax Policy
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COVID-19 Tax Relief If You Work Abroad or Travel to the U.S. to Work
Let’s talk about geography… and taxes. If you live in a foreign country hit by the COVID-19 pandemic, you may have to return to the U.S. If so, you may worry that you’ll get hit with a huge tax bill for failing to meet the foreign earned-income exclusion requirements. Ouch!If you’re a non-resident alien who got stranded in the U.S. because of the COVID-19 pandemic, you too … [Read more...]
Is the EIDL Advance Taxable?
One of the important things we do at The Tax Reduction Letter is keep very close tabs on IRS guidance. I’m glad we do, because recently the IRS issued important guidance indicating that business expenses used to create Paycheck Protection Program (PPP) loan-forgiveness are non-deductible. This means that if you received an Economic Injury Disaster Loan (EIDL), you may … [Read more...]
Top 8 Changes in the New SECURE Act You Need to Know Now
As year-end approached in 2019, all was not deadlocked in Washington. You see, on December 20th the president signed off on an important new law called the Setting Every Community Up for Retirement Enhancement Act of 2019, also known as the SECURE Act. The new law, explained in my new article, makes significant changes in how you can… Save money for retirementUse your … [Read more...]
TCJA Changes Vacant Land Tax Strategies
Do you own a vacant lot or other unproductive land? If the answer is “yes,” it’s very likely you’ll need new strategies for tax years 2018 through 2025. You might even need to consider making different investments! Why? Because the Tax Cuts and Jobs Act (TCJA) has impacted every cost you incur to carry that vacant lot or unproductive land investment. Want to understand … [Read more...]