(i.e., a tax year after the 2020 tax year). Eligible taxpayers may, but do not need to, use this safe harbor to deduct non-deducted eligible expenses in a subsequent tax year because those taxpayers may deduct the non-deducted eligible expenses in the year that the loan forgiveness is ...
the taxpayer cannot deduct the $1 million in payroll expenses paid in 2020. The result would be identical even if the taxpayer had not applied for forgiveness at the time the tax return was filed so long as the taxpayer had a reasonable expectation at the time the tax return was filed...
In particular, it is unclear why Congress would have provided only for tax forgiveness when a tax deduction for many taxpayers might be more valuable from a cash flow perspective, particularly when taking into account that taxpayers may have counted on those deductions when determining 2020 ...
Tax debt forgiveness is incredible news for many people who have fallen into financial hardship. Better yet, the IRS usually freezes penalties and interest once your tax settlement is approved. As a result, you can avoid wage garnishments. Once approved, your tax liability will decrease almost i...
Additional benefits are also available pursuant to the OZ incentive, including potential partial forgiveness of the tax on the original capital gain and exclusion of future capital gains, provided certain requirements are satisfied. The Extension Notice provides that, due to the COVID-19 emer...
tax year. In one scenario described in the ruling, a PPP loan borrower pays “eligible expenses” (meeting the requirements under the CARES Act to be eligible for loan forgiveness) and applies for forgiveness in November 2020 but does not receive a determination from the lender by the end of...
If you did not prepare and e-file your tax return through eFile.com, you can still search the rejection codes below as they are the same codes issued by the IRS and states. However, the instruction on how to correct your return might not match the site where you prepared or e-filed ...
forgiveness, oreven having a “reasonable expectation” of forgiveness, must forfeit an equal amount of otherwise deductible expenses on their tax returns. The net effect would be the same as if the loan forgiveness produced taxable income, as it generally does when Congress does not specify ...
PPP loans, created by the CARES Act, allow forgiveness if recipients meet certain criteria. Loan forgiveness is specifically excluded from taxable income. The IRS initially ruled that taxpayers must reduce deductions for expenses paid from loan proceeds if the loan was forgiven or expected to be fo...
The IRS released a draft of the2018 1040 tax formbased on the Tax Cuts and Jobs Act. The shorter form is half the size of the current 1040 form and combines all three current 1040 forms (1040, 1040-A, and 1040-EZ) into one 1040 form. This new 1040 Form uses a “building block”...