AccountingBookkeeping for Small Business Assistance Tax Services in Rancho Cucamonga, CA
Tax Implications of COVID-19 Small Business Assistance Loans
The coronavirus pandemic has shaken the world in unprecedented ways, particularly economically. In order to prevent total economic crumble, the president signed the CARES Act into law on Friday, March 27, 2020. This act set aside $376 billion to help workers and small businesses in the United States keep their jobs and businesses open. These funds were approved for borrowing from the U.S. Small Business Administration in four new programs:
Payment Protection Program (PPP)
Economic Injury Disaster Loan (EIDL)
Express Loans
SBA Debt Relief
Each loan program has different requirements and terms. As the end of the year nears, many business owners that participated in one of these loan programs are wondering what the tax implications will be. While some of these loans are forgivable, the expenses that are paid for with loan funds are not tax deductible. This means that business owners who accepted a loan could face much higher tax payments than usual. As the pandemic has continued, additional orders were signed that have impacted payroll taxes and more.
Understanding all of these implications as you prepare your taxes for this year can be overwhelming. Paramount Tax Services of Rancho Cucamonga is here to help. Our team of professional tax preparers in Rancho Cucamonga works closely with EAs to ensure the most accurate understanding of tax code and annual implications. We can help you understand how any COVID-19 relief funds will impact your taxes and prepare an accurate return. Additionally, we will ensure you are taking every possible deductible to minimize your total amount owed. Every penny counts, especially in a time of economic hardship. The Paramount Tax team is here to help you!
Tax Implications of Paycheck Protection Program (PPP) for Small Businesses Tax Services in Rancho Cucamonga
As the tumultuous year of 2020 comes to an end, many small business owners are left wondering what their tax returns will look like. The unpredictable economic damage caused by the COVID-19 led to the passing of the Coronavirus Aid, Relief and Economic Security (CARES) Act. Through the Paycheck Protection Program, or PPP, this act allotted up to $349 billion in forgivable loans to small businesses for payroll assistance and certain other expenses. If your business applied for a PPP loan, you may be wondering about the tax implications.
While loan forgiveness was promised for PPP loans (if at least 60% was used to cover payroll), expenses paid with forgiven PPP loan proceeds are not deductible. That means that expenses that are typically deductible, like utilities and rent, will not be deductible if you used the loan funds to cover them.
PPP loan forgiveness is possible if loan proceeds were used to cover the following expenses:
Payroll costs and employee retention
Interest payments on covered mortgage obligations
Payments for covered rent obligations - Under this covered expense, "lease agreements for real or personal property" is included, which covers equipment and vehicles.
Economic shocks are hard to navigate and the implications of this past year are no different. Trying to understand how the PPP loan will affect your taxes is much more difficult on your own. Our talented team of professionals and tax preparers are here to help. From the 2018 Tax Plan to Stimulus Checks and now PPP loans, our professionals have worked around the clock to ensure our clients recieve accurate assistance and credible information. Taxes are already overwhelming; you can expect this year’s filing to be doubly frustrating. With help from our expert tax preparers, however, you can rest assured that your taxes will be filed accurately.
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Posted November 14th 2023 on google
Michael is Honest, Reliable, Friendly, and Great at what he does. I highly recommend Him and his team for any Tax or Accounting needs!
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Posted November 14th 2023 on google
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Posted October 16th 2023 on google
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I have been going to Chris to get my taxes done for several years and always very pleased with his services. He is very knowledgeable and professional. I highly recommend their services.
I been doing my taxes with Chris Collins for years, the quality and knowledge of his work is excellent, I’m very pleased with the results, highly recommend.
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Posted September 29th 2023 on google
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Posted September 26th 2023 on google
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Posted September 22nd 2023 on google
My family has been with Fussion Financial for 14 years because of his great customer service. He has given us advice in our taxes and other matters. A great friend to have on your side!
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Posted September 21st 2023 on google
Always a great experience working with Christopher. He always has great ideas and information to assist his clients in getting the most out of their money to prepare for the future.
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Posted September 15th 2023 on google
It was a valuable meeting with Andrew at Paramount. He provided information to look at our financial situation and consider directions. He addressed our Tax questions, and I am comfortable having Paramount work on our taxes this year.
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Posted September 8th 2023 on google
Received Excellent service, and helped me resolve a tax problem, after receiving poor service from an Orange County CPA…
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Posted September 6th 2023 on google
Chris @ Paramount has been our tax guy for over 10 years, helping us get tax savy and getting it done on time. His friendly approach and experience really shows, answering our questions and concerns always. Chris & Roxi you Rock!
Many people do not know how a professional tax firm differs from a tax preparer. The main difference when working with a professional tax and accountingbookkeeping firm, such as Paramount Tax & Accounting - Rancho Cucamonga, is that our firm utilizes the services of CPAs, EAs, and Attorneys who are distinguished from other finance professionals by stringent qualification and licensing requirements.
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Our strict standards ensure that we understand the complicated tax laws and how to implement strategies that return the most benefits to individuals and businesses. Give Paramount Tax & Accounting - Rancho Cucamonga a call or visit our
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