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The Thomas Howell Ferguson Blog

How have the Paycheck Protection Program (PPP) funds been spent so far?

Are you interested in learning more about how the Paycheck Protection Program (PPP) loans have been spent so far?  You can check for updates on the SBA site here. How much of the Paycheck Protection Program (PPP) loans have been approved so far? As of April 16, 2020, the loan count was 1,661,367 with net […]

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Paycheck Protection Program (PPP) Lender Allowed to Apply for a PPP Loan?

Unlike other SBA loan programs, the financial terms for Paycheck Protection Program (PPP) loans are uniform for all borrowers.  The standard underwriting process does not apply because no creditworthiness assessment is required for PPP loans. Consequently, there is no meaningful risk of underwriting bias or below-market rates and terms.  It has also been recognized that […]

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Paycheck Protection Program (PPP) – Documentation for Loan Forgiveness

What documents do I need to provide for loan forgiveness for the Paycheck Protection Program (PPP)? If you have employees, you should submit Form 941 and state quarterly wage unemployment insurance tax reporting forms, or your equivalent payroll processor records that best correspond to the covered period.  This should also include evidence of any retirement […]

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How Much of the Paycheck Protection Program (PPP) Loan Will Be Eligible for Forgiveness?

How Much of the Paycheck Protection Program (PPP) Loan Will Be Eligible for Forgiveness? The amount of the Paycheck Protection Program (PPP) loan forgiveness can be up to the full principle amount of the loan, plus any accrued interest.  The actual amount of loan forgiveness will depend, in part, on the total amount spent over […]

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How Can PPP Loans Be Used By Individuals With Income From Self-Employment Who File a 2019 Form 1040, Schedule C?

The proceeds of a PPP loan are to be used for the following. Owner compensation replacement, calculated based on 2019 net profit. Employee payroll costs (as defined in the First PPP Interim Final Rule) for employees whose principal place of residence is in the United States, if you have employees. Mortgage interest payments (but not […]

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Paycheck Protection Program (PPP) – How do I calculate the maximum amount I can borrow?

Paycheck Protection Program (PPP) – How do I calculate the maximum amount I can borrow? How you calculate your maximum loan amount depends upon whether or not you employ other individuals.  If you have no employees, the following methodology should be used to calculate your maximum loan amount: Step 1: Find your 2019 IRS Form […]

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Am I Eligible for the PPP If I Have Income From Self-Employment and File a Form 1040, Schedule C?

Am I eligible for the Paycheck Protection Program (PPP) loan if I have income from self-employment and file a Form 1040, Schedule C? You are eligible for the Paycheck Protection Program (PPP) loan if: You were in operation on February 15, 2020; You are an individual with self-employment income (such as an independent contractor or […]

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Is There An Extension for 990 Forms?

Is there an extension for 990 Forms?   The IRS and the Department of Treasury released Notice 2020-18 on March 20th in response to the Coronavirus pandemic. At first glance, this notice had little impact on tax-exempt organizations and not-for-profits. The Notice 2020-18 applied exclusively to income tax returns and payments due on April 15, 2020, postponing […]

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Tax Deadline Extension to Cover Individuals, Trusts, Estates, and Corporations

Has the tax deadline been extended to cover individuals, trusts, estates, and corporations? To help taxpayers, the Department of Treasury and the Internal Revenue Service announced that Notice 2020-23 extends additional key tax deadlines for individuals and businesses. Last month, the IRS announced that taxpayers generally have until July 15, 2020, to file and pay […]

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Paycheck Protection Program (PPP) Q&A

Information about the Paycheck Protection Program (PPP) is changing rapidly.  Because it is changing so quickly, we want to remind you of the importance of checking your sources.  For this reason, we are providing the link to a great resource from the Small Business Administration (SBA), their FAQ page.  You can find their Paycheck Protection […]

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What is the Main Street Lending Program from the Federal Reserve?

What is the Main Street Lending Program from the Federal Reserve? The Federal Reserve has taken additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the […]

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Paycheck Protection Program (PPP), Can the Loan Be Forgiven?

Can my Paycheck Protection Program (PPP) loan be forgiven in whole or in part? Can my Paycheck Protection Program (PPP) loan be forgiven? Yes. The amount of the Paycheck Protection Program (PPP) loan forgiveness can be up to the full principal amount of the loan and any accrued interest. That is, the borrower will not […]

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Recommendations for Paycheck Protection Program (PPP) Application Documents

AICPA Recommendations for Paycheck Protection Program (PPP) Application Documents The American Institute of Certified Public Accountants (AICPA) is the world’s largest member association representing the accounting profession.  As members, we closely follow their guidance. The AICPA-led Coalition, and other key stakeholders – collectively representing 44K CPA firms, 2.5M small businesses and 30M employees – have […]

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CARES Act – Things You Need To Know – Get The Facts

Payment Protection Program (PPP) – This is a program that was included in the CARES Act and was enacted into law on March 27, 2020.  This is an 800+ page bill.  Here are a few fast facts to highlight things you need to know now, especially if you decide it makes the most sense for […]

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Paycheck Protection Program (PPP) – Loan Details

The Paycheck Protection Program (PPP) loan can help many businesses, but what are the loan details? Check out the specifics below. What is the interest rate on a Paycheck Protection Program (PPP) loan? The interest rate will be 100 basis points or one percent. The Administrator, in consultation with the Secretary, determined that a one […]

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Paycheck Protection Program (PPP) – How much can I borrow?

I have determined that I am eligible for the Paycheck Protection Program (PPP). How much can I borrow? Under the Paycheck Protection Program (PPP), the maximum loan amount is the lesser of $10 million or an amount that you will calculate using a payroll-based formula specified in the CARES Act, as explained below. How do […]

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Paycheck Protection Program (PPP) – Can I be ineligible even if I meet the requirements?

Paycheck Protection Program (PPP) Eligibility Requirements You are eligible if you are: A small business with fewer than 500 employees A small business that otherwise meets the SBA’s size standard A 501(c)(3) with fewer than 500 employees An individual who operates as a sole proprietor An individual who operates as an independent contractor An individual […]

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Paycheck Protection Program (PPP) – Impact on Business

In this time of rapidly changing information, we are here to provide answers to some of the Paycheck Protection Program (PPP) questions businesses have. What is the Paycheck Protection Program (PPP)? The Paycheck Protection Program (PPP) is intended to provide a direct incentive for small businesses to keep their workers on payroll.  Loans guaranteed under […]

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SBA Economic Injury Disaster Loan (EIDL)

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for the SBA Economic Injury Disaster Loan (EIDL) advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available […]

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CARES Act – Impact on Individuals

Recovery Rebates All US resident individuals with an adjusted gross income of up to $75,000 ($150,000 married), and a work-eligible Social Security Number (SSN), are eligible for the full $1,200 rebate ($2,400 for those who are married and file jointly).  Additionally, individuals are eligible for an extra $500 per qualifying child, given that the qualifying […]

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CARES Act – Impact on Not-For-Profit Organizations

The CARES Act contains several provisions that are applicable to not-for-profit organizations.  The process for obtaining available relief will largely depend on your tax classification under Section 501(a) of the Internal Revenue Code (the Code). For 501(c)(3) and 501(c)(19) organizations with 500 or fewer employees, including full-time and part-time employees, that have been in existence […]

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CARES Act – Small Business Relief

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep their workers employed during the COVID-19 pandemic and economic downturn. The Paycheck Protection Program provides 100% federally guaranteed loans to small businesses. These loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their […]

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Families First Coronavirus Relief Act Update!

Congress has passed, and President Trump signed into law on March 18, 2020, the Families First Coronavirus Response Act (FFCRA). The FFCRA provides for three sections that likely will be of particular interest for employers (both for-profit and not-for-profit organizations alike): (1) Emergency Family and Medical Leave Act Expansion, (2) Emergency Paid Sick Leave, and […]

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COVID-19 – Grant and Loan Programs with Links

There are multiple options being offered right now to help for-profit and not-for-profit organizations during this difficult time.  How do you know what is best for you?  Please feel free to reach out to our team with questions.  In the meantime, below are some options for you to consider:   Tallahassee-Leon County Office of Economic […]

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IRS Will Now Accept Email and Digital Signatures

Effective immediately, the IRS will begin to temporarily accept images of signatures (scanned or photographed) and digital signatures on documents related to the determination of collection of tax liability.  This has been put in place to help taxpayers and the tax professional community during the COVID-19 pandemic. Additionally, IRS employees are now being allowed to […]

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April 15th Tax Deadline – Updated Information re: COVID-19!

To our clients and friends, Tax guidance continues to change as the Treasury Department and IRS work to do their part in providing taxpayers relief in response to the COVID-19 pandemic. Last Friday, we sent an update regarding income tax payment relief provided by the IRS via IRS Notice 2020-17. Following that communication, the IRS […]

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Standard and Itemized Deductions: Which One Is for You?

When filing your taxes, you may struggle to determine whether you should choose to use the standard deduction or itemize your deduction.  Finding the solution to this is very important as deductions reduce the amount of taxable income when filing your federal income tax return.  Basically, deductions can reduce the amount of taxes you owe. […]

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No More Parking Taxes for Not-For-Profits!

The Tax Cuts and Jobs Act enacted in 2017 imposed a parking tax under I.R.C. Section 512(a)(7). This parking tax has been retroactively repealed under the Taxpayer Certainty and Disaster Tax Relief Act signed into law on December 20, 2019. This Act retroactively repeals for tax-exempt organizations the unrelated business income tax on disallowed fringe […]

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Deductions Eliminated by the Tax Cuts and Jobs Act

Although the 2018 Tax Cuts and Jobs Act provided some new tax breaks, it also erased many deductions that you may have routinely claimed.  The following eliminated deductions are scheduled to remain through 2025, pending congressional action. Home Equity Loan Interest. According to the new tax law, the deduction for home equity interest from 2018 […]

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Deductions Eliminated by the Tax Cuts and Jobs Act

Although the 2018 Tax Cuts and Jobs Act provided some new tax breaks, it also erased many deductions that you may have routinely claimed.  The following eliminated deductions are scheduled to remain through 2025, pending congressional action. Home Equity Loan Interest. According to the new tax law, the deduction for home equity interest from 2018 […]

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What is a Tax Checkup and Why Does Your Organization Need One?

Over time an organization, as well as related tax and case laws, can change significantly.  These changes, although subtle on a year-by-year basis, can considerably alter the tax exposure of your exempt entity. A comprehensive tax “checkup” serves as a diagnostic tool to help identify tax exposure areas and planning strategies. A tax checkup provides […]

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Why Should You Have a Succession Plan?

An often overlooked process for companies is the development of a succession plan.  Succession plans are used to address the inevitable changes that occur when business owners, partners or key employees resign, retire, are fired, get sick, or pass away.  This strategy for the identification and development of future leaders is necessary to ensure a […]

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New Tax Law Allows Small Businesses to Expense More and Expand Bonus Depreciation

Changes to the new tax law means that small business owners can immediately expense more of the cost of certain business property  Many are now able to write off most depreciable assets in the year they are placed into service. The Tax Cuts and Jobs Act (TCJA), passed in December 2017, made tax law changes […]

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Expanded Tax Relief Provided for Victims of Hurricane Michael

Those affected by Hurricane Michael have until February 28, 2019, to file individual and business tax returns and make certain tax payments. This relief is being offered to any Major Disaster Declaration area designated by the Federal Emergency Management Agency (FEMA) as qualifying for either individual or public assistance.  Currently, this includes parts of Florida […]

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Things to Remember when Considering Early Withdrawals from Retirement Plans

Many people may need to take out money early from their Individual Retirement Account or retirement plan. Doing so, however, can trigger an additional tax on early withdrawals. You would owe this tax on top of other income tax you may have to pay. Here are a few key points to know: Early withdrawals. An […]

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