The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules. Background Back in March of 2020, Congress originally enacted the ERTC in the CARES Act to encourage employers to hire and retain employees during the pandemic. At that time, the ERTC applied to wages paid after March 12, 2020, and before January 1, 2021. However, Congress later modified and extended the ERTC to apply to wages paid before July 1, 2021. The ARPA again extended and modified the ERTC to apply to wages paid after June 30, 2021, and before January 1, 2022. Thus, an eligible employer can claim the refundable ERTC against “applicable Read More...
Archives for August 2021
SBA PPP Direct Forgiveness Portal has Opened
As of today, August 4, 2021, the Small Business Administration (SBA) has opened its SBA PPP Direct Forgiveness Portal. The portal will allow borrowers to apply for forgiveness on loans of $150,000 or less directly through the SBA as opposed to applying through their lender, provided that the lender has opted into the program. Click here to visit the portal and register: https://directforgiveness.sba.gov/ Click here to download the SBA’s user guide: https://sba-forgiveness-docs.s3-us-gov-west-1.amazonaws.com/SBA-PPP-DF-User-Guide.pdf If you have further questions about the SBA PPP Direct Forgiveness Portal, please contact us, and be sure to visit our COVID-19 Resource Center for additional resources and regular updates. Read More...
There’s Currently a “Stepped-Up Basis” If You Inherit Property — But Will It Last??
If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. The current rules Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. So, for example, if your grandmother bought stock in 1935 for $500 and it’s worth $1 million at her death, the basis is stepped up to $1 million in the hands of your grandmother’s heirs — and all of that gain escapes federal income tax. The fair market value basis rules apply to inherited property that’s includible in the deceased’s gross estate, and those rules also apply to property inherited from foreign Read More...