Did you get a nice pile of tax-free money by taking advantage of the first Paycheck Protection Program (PPP)? Well, here’s your chance to double dip! That’s right. Thanks to a recently-enacted law, you may qualify for a second round, a “second draw,” of PPP tax-free money. Yes. You do have to qualify for this second draw of cash, but there’s a pretty good chance you … [Read more...]
Home-Office Deduction—Show Me the Proof!
When the subject of establishing a home office comes up, small-business owners often have lots of questions. Who can blame them? They’re worried about triggering an IRS audit. One question we’re often asked at the Tax Reduction Letter is: “If I have an office outside of my home, can I have a tax-deductible home office in my home? The answer is a resounding … [Read more...]
New Laws—COVID-19-Related Government Grants: Taxable or Not?
Hey buddy. Can you spare a billion dollars? Apparently Uncle Sam and his state and municipal buddies can. In fact, because of the economic devastation caused by the COVID-19 epidemic, Uncle Sam and his state buddies have given away many billions of dollars in grants. Unlike an Economic Injury Disaster Loan (EIDL), which has to be paid back, government grants (by … [Read more...]
ABLE Accounts: A Great Deal for the Disabled and Their Families
61 million adults, and over 12.6 million children in the United States, have some type of disability. That’s why ABLE accounts can be so tremendously helpful. These tax-advantaged accounts for the disabled are relatively new and they remain little known. A pity. You see, ABLE accounts can be real game-changers because they allow the disabled to save money without … [Read more...]
Tax Considerations When a Loved One Passes Away (Part 2)
Benjamin Franklin observed that “nothing is certain except death and taxes.” And when the death of a loved one does occur the inevitable issue of taxes does arise. Who is responsible for paying the taxes due upon the decedent’s death? The executor. And if you become an executor, I urge you to read the full article. It’s the second in my three-part series that … [Read more...]