News & Analysis as of

CARES Act Tax Deductions Tax Planning

Lowenstein Sandler LLP

OBBBA Provisions Impact Charitable Contribution Deductions

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On July 4, President Donald Trump signed into law the One Big Beautiful Bill Act (H.R. 1) (OBBBA). While OBBBA contains various provisions that impact high-net-worth individuals, this alert focuses on OBBBA provisions...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Make Your Year-End Charitable Gifts to Take Advantage of Expanded Tax Benefits

Because of the hardships from the COVID-19 pandemic and several weather related events, the demand on charitable organizations has increased significantly this year, increasing the need for charitable giving. Tax benefits to...more

BCLP

2021 Charitable Deduction Reminder

BCLP on

The Internal Revenue Service explained how expanded tax benefits can help both individuals and businesses give to charity before the end of this year. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted...more

Bowditch & Dewey

Extension of CARES Act Incentives Relating to Charitable Giving: Planning with a Charitable Unitrust Remainder Trust (CRUT)

Bowditch & Dewey on

By using a Charitable Unitrust Remainder Trust (CRUT), philanthropic minded donors can gift to a charitable cause while maintaining a lifetime benefit. A CRUT is an irrevocable agreement that will provide an income stream to...more

Lathrop GPM

Spring 2021 Charitable Giving Update

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As spring arrives, it is time for a look at the latest tax changes and their effects on individuals and nonprofits making gifts and receiving contributions. 2021 presents an opportunity to take advantage of increased...more

Robins Kaplan LLP

The Robins Kaplan Spotlight, Vol. 5 No. 4, Winter 2021 - The Case for Charitable Giving

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Last year brought with it several unexpected challenges due to the COVID-19 pandemic, including economic, social, and financial hardships that have left many in a position of extraordinary need. ...more

Cadwalader, Wickersham & Taft LLP

The Consolidated Appropriations Act of 2021

Business Tax Provisions - About-Face on Deductibility of PPP Expenses. The CAA overrules the IRS’s previous guidance denying the deductibility of expenses relating to forgiven PPP loans....more

Akerman LLP - SALT Insights

Summary of Tax Provisions in the Consolidated Appropriations Act, 2021

On December 27, 2020, President Trump signed the new $900 billion stimulus package – the Consolidated Appropriations Act, 2021 (the CAA), which, among other things, advances legislation intended to provide additional help for...more

Stinson LLP

IRS Reverses on Deductibility of Expenses Paid with PPP Loans

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On January 6, the IRS issued Revenue Ruling 2021-2, reversing its earlier position and allowing expenses paid with PPP loan proceeds to be deducted....more

Payne & Fears

Paycheck Protection Program Phase 2: What Businesses Need to Know

Payne & Fears on

Much of the publicity and scrutiny surrounding the recently enacted coronavirus relief bill attached to the Consolidated Appropriations Act of 2021 has been focused on the economic impact payments and supplemental...more

Ruder Ware

Paycheck Protection Program Loan Borrowers Will Find Deductions Under the Tree This Holiday Season

Ruder Ware on

On the evening of December 21, 2020 the House and Senate passed the Consolidated Appropriations Act, 2021 (the “Act”), a 5,593 page bill that funds the federal government for the next fiscal year and provides long anticipated...more

UB Greensfelder LLP

Congress Confirms Tax Deductions for Expenses Paid with PPP Loans, Extends Other Tax Provisions

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Congress gave recipients of loans under the Paycheck Protection Program (PPP) a holiday present when it confirmed the deductibility of expenses paid with proceeds of a PPP loan that is forgiven. This confirmation is part of...more

Lowndes

New COVID-19 Relief Bill Allows Deductibility of Expenses Paid with Forgiven PPP Loans

Lowndes on

As I previously reported in an article published earlier this month, the IRS has repeatedly taken the position that businesses cannot deduct otherwise deductible expenses (such as payroll or rent) if the business used...more

Pullman & Comley, LLC

Are Eligible PPP Expenses Deductible? IRS vs. Congress?

Pullman & Comley, LLC on

The CARES Act was enacted in March 2020 for purposes including providing financial assistance to eligible borrowers under the Paycheck Protection Program, well known as PPP, and more than $500 billion of forgivable loans have...more

Morgan Lewis

IRS Provides Further Guidance on the Deductibility of Expenses Funded by PPP Loans

Morgan Lewis on

The Internal Revenue Service recently released Revenue Ruling 2020-27 and Revenue Procedure 2020-51, which provide guidance on the deductibility of certain expenses paid or incurred in a taxpayer’s business using loan...more

Katten Muchin Rosenman LLP

2020 Year-End Estate Planning Advisory

In 2020, COVID-19, the US presidential election, the Tax Cuts and Jobs Act (the TCJA), and the Coronavirus Aid, Relief and Economic Security Act (the CARES ACT) dominated the planning landscape....more

Miller Canfield

IRS Updates Guidance on Deductibility of Expenses Paid With PPP Loan Proceeds

Miller Canfield on

The IRS recently released additional guidance about the tax treatment of expenses paid with proceeds of Paycheck Protection Program loans. The PPP loans are a COVID relief program enacted as part of the CARES Act....more

Bowditch & Dewey

2020 End of Year Tax Planning for Businesses

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As the 2020 year draws to a close, businesses should review the tax-related provisions adopted in the CARES Act and related IRS guidance with their tax advisers: EMPLOYER REFUNDABLE CREDIT AND PAYROLL TAX DEFERRAL: -...more

Nossaman LLP

On-Demand Webinar | PPP Loan Forgiveness: Employment and Tax Issues for Borrowers

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Introducing Nossaman's Employment BUZZ webinar series! Each month, our attorneys will cover a different topic of interest to employers, including tax, insurance, intellectual property and employment issues. These "quick hit"...more

Herbert Smith Freehills Kramer

Final Treasury Regulations Clarify Business Interest Deduction Limitation

Background - On July 28, 2020, the Internal Revenue Service (IRS) issued final regulations (T.D. 9905) (the final regulations) concerning the limitation on the deductibility of business interest expense (BIE) under Section...more

Bowditch & Dewey

A Trap for the Unwary – IRS Denies Deductions for Expenses Paid with Forgiven PPP Loans

Bowditch & Dewey on

A central feature of the CARES Act, the Paycheck Protection Program (PPP), provided a lifeline to a multitude of small businesses during the early days of the Coronavirus pandemic. PPP loans were used to cover payroll...more

Adler Pollock & Sheehan P.C.

The CARES Act Creates Charitable Tax Incentives - Insight on Estate Planning

Many individuals incorporate charitable giving into their estate plans, providing assistance to their favorite charities while preserving sufficient assets for their heirs. Typically, the charitable donations are structured...more

Bowditch & Dewey

How Can a Craft Brewer Use the Tax Code to Help with Cash Flow?

Bowditch & Dewey on

Breweries can turn to the Internal Revenue Code to help with cash flow in these difficult times. Section 165(i) of the Internal Revenue Code allows a taxpayer to deduct any loss occurring in a “disaster area” and attributable...more

Morgan Lewis

Taxpayers Receiving PPP Loans: IRS Provides Important Guidance on Expense Deduction

Morgan Lewis on

As part of its ongoing efforts to provide guidance on the federal income tax consequences of various Coronavirus Aid, Relief, and Economic Security (CARES) Act provisions, the IRS issued Notice 2020-32 addressing the...more

McAfee & Taft

IRS disallows deductions in conjunction with Paycheck Protection Program loan forgiveness

McAfee & Taft on

Did Congress intend to provide small businesses a double tax benefit when it passed the Paycheck Protection Program, or was the CARES Act’s lack of clear, specific language on the topic of business expense deductibility just...more

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