The Restaurant Revitalization Fund (RRF) has opened to new applicants beginning May 3, 2021. The RRF offers tax-free grants that do not need to be repaid to restaurants and similar businesses to help them cope with the COVID-19 pandemic. Created by the American Rescue Plan Act, the RRF provides grants of up to $10 million per business and $5 million per location.
On April 29, 2021, California Governor Gavin Newsom signed into law Assembly Bill 80 (AB80), the Coronavirus Aid, Relief, and Economic Security Act: Federal Consolidated Appropriations Act, 2021. Previously, California law allowed businesses to exclude forgiven PPP loan funds from their taxable income, but did not allow businesses to deduct expenses paid using forgiven PPP loan funds on their income taxes. AB80 now permits many California taxpayers to claim a tax deduction for expenses paid using PPP loan proceeds.
The Consolidated Appropriations Act, 2021 (CAA) has expanded which expenses are eligible for Paycheck Protection Program (PPP) loan forgiveness. During this two-minute video, Chugh, CPAs, LLP Partner and CPA Edith Miranda-Smith shares the latest on which non-payroll costs are eligible for loan forgiveness.
Most United States taxpayers are eligible for a second Economic Impact Payment, or stimulus payment, from the US government to help them cope with the economic downturn caused by the COVID-19 pandemic. Most Americans will receive the Economic Impact Payment automatically via paper check or direct deposit. Certain individuals who did not receive their stimulus payment during the first round may be eligible to claim a Recovery Rebate Credit.
The US Small Business Administration (SBA) recently expanded its rules for Paycheck Protection Program (PPP) loan forgiveness. New regulations allow businesses to spend a smaller percentage of their PPP loan proceeds on payroll costs, have a longer time to rehire their workforce, and get more time to spend their loan proceeds, among other changes. But how exactly is PPP loan forgiveness calculated, and how does the process work? There are a few critical pieces of information that businesses should know when seeking PPP loan forgiveness.
Significant retirement savings incentives are currently available under the tax code, including employer-sponsored qualified retirement plans, such as 401(k) plans, and non-qualified plans like traditional and Roth individual retirement accounts (IRAs). Now is as good time as any to review and evaluate your retirement savings and cash in on the benefits available.