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Oct 2021Five Things High Income Earners Need to Know About Biden’s New Tax Proposal
We’ve read the whole proposal so you don’t have to, and pulled out the top 5 things high-income earners need to know. Let’s dive in… 1. Top Ordinary Income Tax Rate Ordinary income is defined as: Interest, dividend, w2, k1, social security, and pension Basically, it’s all things but long-term capital gains – which we’ll get to next – and qualified small business stock. This proposed…
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Apr 2021California PPP Rule Changes
The California General Assembly has sent AB 80 to the Governor, and he is expected to sign it. AB 80 generally conforms to the federal treatment of PPP loan forgiveness and EIDL grants, with one major exception. To deduct expenses paid with PPP loan forgiven amounts, the taxpayer must have a 25% reduction in gross receipts in any 2020 calendar quarter as compared to the…
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Mar 20212021 Tax Deadline Extension: What You Need To Know
Just this past Wednesday, March 17th, the due date to file your 2020 federal and California income tax returns filings was postponed to May 17th, from April 15th. This includes the filing of the tax return as well as paying any remaining balance that is due for 2020. The delay comes from the continual effects that COVID-19 has had on America, including the IRS, which…
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Jan 20211099-NEC versus 1099-MISC
As the year draws to a close, it is a perfect time to prepare for the upcoming tax filing requirements. One type of tax form that is due sooner than usual is the 1099-NEC. You may have never heard of this form but don’t worry, it’s just replacing a portion of the 1099-MISC, a form that most business owners are familiar with. As you may…
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Dec 2020The New COVID-19 Relief Bill: What You Need To Know
A $900 billion COVID-19 relief bill was just passed by both the House and Senate on Monday, December 21st. Although the bill now has to be signed by President Donald Trump before going into law, we still wanted to provide the most significant points that would come out of the bill. Stay tuned for additional comments as the bill is over 5,000 pages long! Business-Related…
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Sep 2020Carried Interest: How It’s Changing
The Tax Cuts and Jobs Act of 2017 included Section 1061 which stated that certain taxpayers that hold profits interests in partnerships must satisfy a three-year holding period to qualify for preferential long-term capital gain rates, instead of the usual one-year holding period. Several questions and loopholes arose when this rule was implemented, and the IRS has finally released proposed regulations addressing these issues. This…
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Sep 2020Trump’s Payroll Tax Break: What You Need To Know
As you may recall, earlier last month (August 8), President Trump issued an executive order allowing employers to defer withholding and payment of a portion of their employees’ Social Security taxes if wages are under a certain threshold. Then, last Friday (August 28), the IRS provided guidance on the deferral. Here’s what you need to know: The short deferral of the tax is not an…
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Jun 2020Paycheck Protection Program Flexibility Act: New PPP Rules!
The Paycheck Protection Program Flexibility Act (PPPFA) was signed on June 5, 2020 and revises several rules, making qualifying for full loan forgiveness easier for many small businesses. Make sure you read our original PPP Forgiveness article here if you haven’t already to get a grasp on the general mechanisms of PPP loan forgiveness, as this article will primarily focus on the changes to the…
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May 2020Five Ways Small Businesses Can Make a Big Impact During the Pandemic
During this scary and uncertain time, it can often be hard to find inspiration or know how to be of service. Worrying about finances, school, work, and our families can take a toll on our mental health. But one of the most impactful and uplifting things we can do during tough times is help others. Paragon Accountants is here to share inspiring ideas that you…
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May 2020PPP Loan Forgiveness Rules
With the first round of funding completed and the second round underway, several businesses have received their Paycheck Protection Program loans from the SBA. This article will guide you through the rules that must be followed in order to gain maximum loan forgiveness as well as the rules that may reduce your forgiveness. 75% Rule You must use at least 75% of the PPP funds…