Business Strategies

Why Can’t I Deduct PPP Payroll Expenses?

Question: Given the recent passing of the stimulus law (CAA 2021) permitting a business to deduct payroll expenses paid with Paycheck Protection Program (PPP) funds, how does an S corporation or Partnership basis negatively impact this? I’m hearing that even though the law allows the deduction, some businesses will have suspended losses due to PPP funds. Which is true? Can a business deduct losses from PPP payroll or not?

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Think Outside the Tax Box provides tax reduction strategies along with practical implementation advice in order to reduce your clients’ federal tax bill with ease.

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CURRENT EDITION

Using S Corporations to Minimize FICA And Medicare Tax

Peter J Reilly CPA

When United States Tax Court Judge Paris issued the opinion in the case of Ryan Fleischer in 2016 , it caused quite a stir in the tax blogosphere. And from what I have been able to gather off the record it remains of interest. The Fleischer decision makes it very difficult, if not impossible for some financial professionals to use S corporations to mitigate self-employment tax. Rather than attack on reasonable salary, the IRS took an assignment of income approach, which succeeded throwing planners for financial professionals like Fleischer into a bit of an uproar…

Inflation Reduction Act — The Residential Clean Energy Credit

Timalyn Bowens, EA

Your clients may think that business owners get all the tax breaks and incentives. But that’s not quite true. We see that with the expansion of clean energy tax credits in the Inflation Reduction Act. One of the goals of the Inflation Reduction Act is to address climate change. The bill does this by helping taxpayers save green for using green energy.

Taxpayers can not only enjoy tax benefits from riding clean the next 10 years. Your environmentally conscious clients can also reduce their tax bill as they make clean energy changes to their home. What client do you have right now that would enjoy claiming 30% of the costs of their home improvements for a tax credit? Not sure? Well get your pen and paper to make a list while we go over how this new credit can save them this tax year until 2034.

Collections and Cybercurrency Highlights from 38th Annual UCLA Tax Controversy Institute

Eva Rosenberg, EA CTC

Four keynote speakers headline the 38th Annual UCLA Tax Controversy Institute this year. It was a terrific opportunity to hear from the top IRS executives, get their perspectives on the past year – and coming policies and programs. And, even, to be able to ask them questions. Keep reading for the in-person account!