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Tax Savings Tips - June 2020

Nine Insights into PPP Loan Forgiveness for the Self-Employed
When you are self-employed with no employees, the Paycheck Protection Program (PPP) is a COVID-19 gift designed to help you get through this pandemic.
If you now have your PPP funds, we have identified nine insights for you.
1. New Law, Enacted June 5, 2020, Creates Easier PPP Loan Forgiveness
On Thursday, May 28, 2020, the U.S. House of Representatives approved the Paycheck Protection Program Flexibility Act of 2020 by a vote of 417-1. On Wednesday, June 3, 2020, the Senate passed the bill by a unanimous voice vote. The president signed the bill into law on Friday, June 5, 2020.
Here are some highlights from this new law:
·For a business that currently has a PPP loan—allows the business to extend the eight weeks to 24 weeks or elect to retain the original eight weeks ·For those under the 24-week rule—requires that 60 percent of the loan proceeds be spent on payroll ·For new loans, changes the payback period for the (unforgiven) l…

Tax-Savings Tips - May 2020

Self-Employed with No Employees? Get Your COVID-19 Cash Now
Get ready for this: “I’m from the government, and I’m here to help.”
Here’s the deal: “I’m going to give you $20,833 today. I want you to give me $5,448 no later than two years from now. You can keep the $15,385 difference, tax-free—no strings.”
It’s true. The lucky recipient could be you. To obtain the full $15,385 tax-free cash result in this deal (one of many COVID-19-related assistance programs), you must
·be self-employed, ·have no employees, and ·have self-employment net profits of $100,000 or more.
If you are self-employed, you have no employees, and your net profits are
·$75,000, you pocket $11,538, tax-free. ·$50,000, you pocket $7,692, tax-free. ·$25,000, you pocket $3,846, tax-free.
The results above come from the COVID-19 Payroll Protection Program (PPP). When you are a self-employed taxpayer with no employees, the PPP treats you as the one and only employee, and treats your net profits as your payroll.
Big Picture
Under the…