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.
Love Chris and his entire Team ! They are awesome !!
— Angelica Shimmin,
Posted May 15th 2023 on google
Chris Collins is hands down the best CPA around. Was referred by a family friend over 15 yrs ago and have been going to him ever since for taxes, mortgage, investments and any money/ life advice. Chris has become like family and his entire team at Fusion Financial is amazing .
My wife and I have been with Chris for close to 20 years. He is patient, personable, professional. Will take the time to answer questions. He is now preparing the tax returns for our kids too!
Love coming here and working with the team, especially Chris. He has been working with my family for 15 years and would never go anywhere else. Super helpful and knowledgeable. Always friendly. Will continue coming back.
Chris is the best tax accountant you can go to. Very knowledgeable about everything and answers all questions you have.
— Matthew Velasquez,
Posted May 1st 2023 on google
Chris and team are excellent, thorough, and very professional. Highly recommend for all tax services.
— Andrew Saltsgaver,
Posted May 1st 2023 on google
I had my tax done today with Chris and I was very pleased with the service. He was very professional and very patient. For sure, they offer high quality service.
— Ladan Modallel,
Posted April 29th 2023 on google
Chris and his team is amazing, it is a great comfort knowing that I have a team of people protecting me and my family!
— Mike Howard,
Posted February 10th 2023 on google
They were a great help with my taxes and also gave me some advice Ways to help me with my future planning.
Thank you David
— David Pusczewicz,
Posted April 28th 2023 on google
We love them… still going back after 17 years. They’re honest, dedicated and helpful in anything taxes. Everything else, they can help with that too. Keep up the amazing work. Thank you so much Chris and Mike.
This is my second year working with Chris and the team at paramount to file my taxes. The whole team is great! They treat you like family and are truly there to help. Ill be a customer for life from now on.
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.
Paramount has worked hard to create relationships to deliver the value that our clients expect. In fact, our goal is to be the No. 1 2018 Tax Plan Finance firm in Rancho Cucamonga. So when you ask yourself, "Where can I find accountingbookkeeping services near me?"... think no further than Paramount Tax & Accounting - Rancho Cucamonga!
Whether you are filing personal taxes or you own a business, if you are not already using a professional tax and accountingbookkeeping firm, you have most likely already missed out on major tax benefits, deductions and credits. This is because a professional tax and accountingbookkeeping firm utilizes licensed professionals such as CPAs, EAs and Attorneys, who can not only advise individuals on personal financial matters but who are qualified to advise businesses, financial institutions, nonprofit organizations and government agencies on a wide range of financial topics.
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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