Getting more for your marketing dollars in 2021
Like every year, 2021 brings distinctive marketing trends to the table. The COVID-19 pandemic and resulting economic challenges continue to drive the conversation. You’ll need to tailor your message to this environment. For starters, digital marketing remains critical. Regularly update your search engine optimization so your website ranks highly in online searches. Adjust your use of email, text messages and social media. Look for better deals in advertising rates and for other platforms or channels. Recognize public relations as a key component to marketing success. Use press releases to disseminate trustworthy information and maintain a strong reputation. Contact us for more info.
Blockchain beckons businesses … still
Blockchain has existed for more than a decade, yet it still beckons businesses with promises of efficient, secure transactional technology. Blockchain is a distributed, shared digital ledger that’s continuously copied and synchronized. The ledger isn’t housed on a central server or controlled by one party. Rather, transactions are added to the ledger only when verified through established consensus protocols. Third-party verification makes blockchain highly resistant to errors, tampering or fraud. Blockchain is already proving useful to businesses in various ways, including generating “smart contracts” and demonstrating “service of process” in legal proceedings. Contact us for more info.
Educate yourself about the revised tax benefits for higher education
If you or your child attends (or plans to attend) college, you may be eligible for tax breaks to help foot the bill. The new Consolidated Appropriations Act made some changes. The law repeals the Tuition and Fees Deduction for 2021 and later years. In addition, for 2021 and beyond, the new law aligns the income phase-out rule for the Lifetime Learning Credit (LLC) with the more favorable phase-out rule for the American Opportunity Tax Credit (AOTC). The LLC can be worth up to $2,000 per tax return annually while the AOTC can be worth up to $2,500 per student each year. Talk with us about which tax credit is the most beneficial in your situation. Each has its own requirements.
Can your business benefit from the enhanced Employee Retention Tax Credit?
COVID-19 has caused widespread furloughs and layoffs. Fortunately, employers that keep workers on their payrolls are eligible for a refundable Employee Retention Tax Credit, which was extended and enhanced in the latest law. Under the CARES Act, the credit only covered wages paid between March 13, 2020, and Dec. 31, 2020. The new law extends the covered wage period to include the first two calendar quarters of 2021. In addition, for the first two quarters of 2021 ending on June 30, the new law increases the overall covered wage ceiling to 70% of qualified wages paid during the applicable quarter (versus 50% under the CARES Act). These are just some of the changes. Contact us with questions.
New “PPP2” Funding Opens Today for Special Targeted Applicants
Opening to Remaining Applicants Expected Very Soon Application and Guidance Have Been Released Applications for a new fresh round of Paycheck Protection Program funds have now officially opened today. Initially this is only for targeted community lenders who specialize in working with women-led and minority-owned small businesses. Although we have not heard a definite timeline […]
Need another PPP loan for your small business? Here are the new rules
One item of interest for small business owners in the Consolidated Appropriations Act (CAA) is the availability of a second loan from the Paycheck Protection Program (PPP). The recently enacted CAA permits some small businesses who received a PPP loan to take out a “PPP Second Draw Loan” of up to $2 million. To qualify, you must employ no more than 300 employees per physical location, have used or will use the full amount of your first PPP loan, and demonstrate at least a 25% reduction in gross receipts during any quarter of 2020 (as compared with the same quarter in 2019). Additional rules apply. Contact us with any questions you might have about PPP loans.
The COVID-19 relief law: What’s in it for you?
The COVID-19 relief law that was signed recently contains many provisions that may affect you. The law provides for direct payments of $600 per eligible individual ($1,200 for a married couple filing jointly), plus $600 per qualifying child. The government has already started making bank direct deposits or mailing checks. Another provision extends a charitable donation tax deduction for individuals who don’t itemize deductions. For 2020, they can take up to a $300 deduction per tax return and for 2021, married joint filers can claim up to $600. These are only a few provisions in the new law. We’ll make sure that you get all the tax breaks you’re entitled to when we prepare your tax return.
New law doubles business meal deductions and makes favorable PPP loan changes
The COVID-19 relief bill, signed into law on December 27, 2020, contains numerous favorable tax breaks for businesses. For example, the new law includes a provision that removes the 50% limit on deducting business meals provided by restaurants and makes those meals 100% deductible. This rule applies to expenses paid or incurred in calendar years 2021 and 2022. The law also authorizes more money towards the Paycheck Protection Program (PPP) and extends it to March 31, 2021. In addition, it provides for the deductibility of PPP expenses paid with the loan proceeds. These are just a couple of the business-related provisions in the new law. Contact us if you have questions about your situation.
Your taxpayer filing status: You may be eligible to use more than one
For tax purposes, Dec. 31 is more than just New Year’s Eve. It will affect the filing status box that will be checked on your tax return. When filing a return, you do so with one of 5 tax filing statuses. The box checked on your return generally depends in part on whether you’re unmarried or married on Dec. 31. Here are the statuses: Single, married filing jointly, married filing separately, head of household and qualifying widow(er) with a dependent child. Head of household status can be more favorable than filing as a single person, but special rules apply. You must generally be unmarried, have a qualifying child (or dependent) and meet certain rules involving “maintaining a household.”
The right entity choice: Should you convert from a C to an S corporation?
The best choice of entity can affect your business in several ways, including the amount of your tax bill. Although S corporations can provide substantial tax advantages over C corporations in some cases, there are potential tax problems to assess before deciding to convert from C to S status. One issue to consider is last-in, first-out (LIFO) inventory. A C corporation that uses LIFO inventory must pay tax on the benefits it derived by using LIFO if it converts to an S corporation. Other issues to consider are the built-in gains tax, passive income tax and unused net operating losses. Contact us if you’re interested in an entity change. We’ll explain your options and the tax implications.
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