Great news, the Child Care Tax Credit has been expanded for 2021! As part of President Biden’s American Rescue Plan Act (ARPA) signed into law on March 11, 2021, the child and dependent care tax credit has been substantially increased. Here are the details:
Lowering Your Bitcoin Taxes
The price of Bitcoin is hitting all-time highs as more and more people flock to invest in it. Lots of investors are having massive gains and need to consider the hardest question about their investment: do I hold, buy, or sell now?
If you choose one of the former two options, you do not have to worry about bitcoin taxes yet. However, if you choose to sell, you will have the IRS looking at you since the sale is a taxable event. The good news is that you can lower your taxes by creating a strategy in advance. While you will have to pay taxes on selling your investment, you can lower your taxes by planning in advance. Here are some strategic options to let you keep more of those Bitcoin gains.
How Biden’s Rescue Plan Might Impact Your Taxes
President Biden released his “American Rescue Plan” on January 14. It is a wish list of proposals he wants Congress to enact to address the COVID-19 pandemic and associated economic crisis. While some of the proposals are intended to be in effect for just one year, it isn’t too great a stretch of the imagination that these could later be extended or made permanent, as many of them have been on the Democrats’ agenda for some time. The anticipated cost of the American Rescue Plan, if all of the proposals are agreed to by Congress, is $1.9 trillion. None of Biden’s proposals are revenue raisers, and according to a January 15, 2021 Wall Street Journal report, he intends to use government borrowing to pay for his plan. Following are some of the tax-related proposals.
Year-End Tax Planning Strategies
Annual year-end tax planning strategies will reflect the COVID-19 pandemic and its effects. This year’s economic impact and federal relief packages will render some year-end tax planning strategies less advisable. In addition, this presidential election could result in new federal tax legislation that could affect the current Tax Cuts and Jobs Act. Below are a few year-end tax planning issues to consider.
SOC 2 Type 1 or Type 2: Which Should You Choose?
Which SOC 2 Report is Right for Your Business?
The time has come for your service organization to get SOC certified. Whether a client requested one, or if you have made this decision for your business, it’s important to know if you should get a SOC 2 Type 1 or Type 2 report.
SOC 1 Type 1 or Type 2: Which is Right for You?
Which SOC 1 Report is Best for Your Business?
So, you have either been asked to get a SOC 1 Audit by a client, or your service organization could benefit from being certified. However, then the next question is, what report should you get? A SOC 1 Type 1 or Type 2 report can be used for a variety of industries. Knowing the differences between the two are vital.
Payroll Tax Executive Order
Several weeks ago the President signed a payroll tax executive order to defer certain payroll taxes. Most of us expected Congress to agree on another stimulus bill that would supersede this executive order. Because there has been no agreement, the President’s executive order for a payroll tax deferral/holiday will take effect today (September 1st).
Considering a Large Investment or Purchase During the COVID Crisis?
The current economic environment resulting from the COVID-19 pandemic is constantly changing. Numbers shifted dramatically as businesses were shut down and reopened, with many stay-at-home orders still in effect across the country. The second quarter GDP numbers reflected the response to COVID-19 which decreased at an annual rate of 32.9%.
Over the past few months, we’ve had more and more clients ask us about how to take advantage of this changing landscape to get ahead on some of their financial goals. Now, more than ever, is the time to begin making smart investments. If you are considering making a large investment, acquisition, or purchase please let us know so that we can begin discussing the advantages and disadvantages well ahead of time to maximize any benefits that may come from it.
Time for Businesses to Get Ahead
Should I reopen my business? How can I reopen my business? What’s the best way to keep operations going? How can I keep my employees and customers safe? These are questions that have been constantly clouding business owners’ minds for the past few months. For some, the first step was simple, just adopt remote work for everyone. For others however, on-site interactions or face-to-face contact is an important part of their operations. Regardless of which group you fall into, there are many important factors to keep in mind as you figure out your next play to keep your business running through this pandemic. Now is the perfect time for businesses to get ahead!
PPP Flexibility Act Has Traps for the Uninformed
Many Businesses will be better off electing to use the old rules. Here’s why…
For businesses that cannot spend all of their PPP loan proceeds on eligible expenses by their 8 week deadline, the new PPP Flexibility Act provides a lifeline in the form of additional flexibility and extensions of deadlines for use of the funds.
However, there are some large pit-falls in the details. Some PPP recipients should consider applying for the PPP loan forgiveness under the old rules. Here’s why: