As the tumultuous year of 2021 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 were originally said to be not deductible. This was clarified in 2021, and business expense are still deductible.
To make sure that that you do not miss out on your proper deductions, and that your accounting is complete and airtight. Contact Torchlight Tax. We will be glad to handle all this for you.
Understanding the Las Vegas tax implications of PPP loans is a complex issue. Many businesses are still waiting on a response to whether their loans will be forgiven or not and some may not have this answer by the time taxes are due.
PPP loan forgiveness is possible if loan proceeds were used to cover the following expenses:
If you are trying to manage PPP loan expenses as you prepare your taxes, Torchlight Tax is the accountant in Las Vegas that you can rely on.
PPP Loan Tax Assistance in Las Vegas
Economic shocks are hard to navigate and the handling these requires expert tax and accounting skill. Trying to understand how the PPP (Payroll Protection Program) loan will affect your taxes is much more difficult on your own. Our team of professional bookkeepers, EAs, CPAs and Tax Attorneys are here to help.
Also, if you did not get a PPP loan, it is likely too late. In 2021 all the funding got used up and was never replaced. IF it gets re-instated, contact us immediately. We have one of our staff who can do the application with you.
EIDLs (Economic Injury Disaster Loans) ARE still available but only until 12/31/2021. In fact, many who got the loans in the first months of the program can get a second loan. The loan limits have been raised substantially. The terms are very good. Check your own documents when you apply, but I believe it is 30 year payback at 3.75% interest starting in two years. On a $100,000 loan, that is around $500 per month. Please be sure to check your documents when you apply, because interest rates and terms can change. If you submit your loan by 12/31/2021, they can still process it. But if you do not apply by then, then you missed your chance.
Many people do not know how a professional tax and accounting firm differs from a bookkeeper or tax preparer. The main difference when working with a professional tax and accounting firm, such as Torchlight Tax, is that our firm utilizes the services of CPAs, EAs, and Attorneys who are distinguished from bookkeepers and other tax preparers by stringent qualification and licensing requirements. Our entire team has a purpose to legally save your tax dollars and to make taxes as painless as possible. This means we take your calls and respond to your concerns. If you receive a threatening IRS call or Notice or are worried about some tax question, we are here for year round taking your calls and responding to your emails.
Whether you are filing personal, small business, or corporate taxes, or negotiating IRS tax debt, if you are not already using a professional Tax, Accounting and IRS Representation firm, you most likely have missed out on major tax benefits. This is because a professional tax and accounting firm utilizes licensed professionals such as Certified Public Accountants (CPAs), EAs and Attorneys, who can not only advise individuals on personal financial matters but who can also advise businesses and corporations of all sizes and types. Tax laws are complicated, and no one knows everything. Torchlight Tax is a team and any one of our tax pros can call on other EAs, CPAs and Tax Attorneys in the team who may have specialist knowledge in a specific area of tax.
When doing current taxes, we often come across missed tax savings from prior years. When this happens, the Internal Revenue Service allows you to amend your taxes and lower your tax liability. Whether you or your prior tax preparer missed a W-2 or 1099, a revised 1099. large charitable donations, or made some other error, amending your tax return can help you recover the money you are rightfully owed. When we find this situation, we will advise you on potential savings and amend the previously filed tax return.</p”>
Sometimes, there may be a situation where a tax return could be amended, but it is too late to receive any benefit. Or maybe you made an error that was missed by the IRS that would have increased your tax liability. In some cases, it is prudent to file an amended return. But if it is not necessary and will not save you any money or decrease your risk, we will tell you not to bother. It is silly to amend a return to no advantage which is too old for the IRS to audit. Some firms might file a bunch of unnecessary tax returns and charge a fee. Sometimes a taxpayer himself might increase his tax liability by filing an unnecessary amendment that increases his tax liability. We will not do this.
Amending a tax return requires more professional acumen then doing it right in the first place. At Torchlight Tax, we do file the tax return correctly the first time. And we will happily amend your tax return, but only if it actually is to your benefit. If you think you might need to amend tax returns, contact Torchlight Tax for a free consultation.