2020 has been a year to remember for so many reasons that it is easy to forget the significant legislation passed by Congress late last year that could potentially impact how you plan for retirement. The Setting Every Community Up for Retirement Enhancement (SECURE) Act is considered by many to be the most significant retirement planning legislation in a generation, and it has raised many questions.
The Financial Accounting Standard Board (FASB) recently released a new lease accounting standard, which took effect for public firms on January 1, 2020, and will take effect for private firms on January 1, 2021.
The new lease accounting standard will require companies to record operating leases as both liabilities and assets on their balance sheets to give a more complete picture of a company’s financial obligations.
The results are in, and regardless of which side you were rooting for, now is a good time to prepare for changes ahead in the new year. While President-elect Joe Biden has not yet provided concrete details on his plans to modify estate taxes, he has indicated that he supports raising estate taxes and changing the taxation of capital assets upon death.
The IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without requiring that employees prove the actual amount spent. However, employees must still substantiate the time, place and business purposes of their travel expenses.
With the extended PPP loan application deadline behind us, many borrowers are anxious to start their loan forgiveness application to ensure that their loan funds are forgiven. Currently, borrowers have until 10 months after the end of the loan’s covered period to apply for forgiveness. At that point, if forgiveness forms have not been submitted, any borrowed funds officially become a loan that needs to be repaid.
Have you heard the terms “Section 199A” or “QBI Deduction” this tax season and wondered what they meant, or whether they will impact your taxes? You’re not alone.
The Tax Cuts and Jobs Act (TCJA) created a new tax deduction for business owners and others, called the Section 199A Qualified Business Income (QBI) Deduction. Since its release, there has been much confusion about the rules of this deduction, even in the tax world. In August, the IRS and the Department of the Treasury released some additional guidance, and in October, held a public hearing to field comments and questions.
On January 18, 2019, The IRS and the Treasury issued final regulations to clarify and update the proposed rules. Here’s a high-level overview: