Richard A. Huffman, CPA, MST Tax Partner The Senate just passed the House bill, called the Paycheck Protection Flexibility Act which is expected to be signed into law by the president. The law will extend the Paycheck Protection Program (PPP) loan forgiveness period from eight weeks to twenty four weeks and reduce the payroll forgiveness spend requirement from 75% to 60%. Loan recipients now have until December 31, 2020 to complete their twenty four week spend period and to meet the restoration of workforce and pay requirements. However, if at least 60% of the loan is not spent on payroll,
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Posts by Chanelle Bosert
WFY Welcomes Two New Hires to Audit Department
This month, Wright Ford Young & Co. is pleased to announce we have two new hires joining our team. Mimi Duong will be joining as an Audit Staff and Lauren Gilmour will be joining as an Audit Intern in our audit department. WFY is pleased to welcome these new hires to our team. Mimi Duong At the end of May, Mimi Duong started a position with WFY as Audit Staff. She will be graduating CSUF later this year with a Business Administration degree with a concentration in Accounting. In her spare time, she enjoys spending time with friends and family,
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Roth IRA Conversion During Coronavirus – Is Now the Right Time?
Cheryl Shelton, JD Tax Supervisor Roth IRA’s have two big tax advantages: Tax-free withdrawals and exemption from required minimum distributions. But converting a traditional IRA into a Roth IRA is a taxable distribution. While in the midst of the coronavirus, is 2020 the right time to make the conversion? Here are some reasons why it might be the ideal time to do a complete or partial conversion: Low tax rates Stock market decline Reduced income The tax rates are the lowest they have been in a while due to the TCJA (they are scheduled to last through 2025). If
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Why Gifting During an Economic Downturn May Be Right for You
Janelle Tokunaga, CPA, MST Tax Supervisor While it may seem like there has been a shortage of good news lately, we wanted to bring your attention to a few bright spots that have come about during our current economic downturn. With the extra time you have at sheltering in place, it may be a good time to revisit your current estate and gift plan. To recap: the 2020 Federal lifetime exemption is $11.58 million per person, including inflation, and the 2020 annual Federal gift exclusion is $15,000 per donee and donor. The current economic market is showing decreased values
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Newsletter and Updates.
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accountant, accountants, accounting, ca, california, certified public accountants, coronavirus, covid19, cpa, cpa firm, estate, estates, firm, gift plan, gifting, irvine, oc, orange county, plan, small business, southern california, tax, tax firm, tax planning, taxation, taxes, trusts, wfy, wright ford young, and wright ford young & co.
Non-Deductibility of PPP Related Expenses to the Extent of Forgiven PPP Funds (IRS Notice 2020-32)
Janet Kim, CPA, MST Tax Director The IRS released Notice 2020-32 on April 30, 2020, which provides guidance on the deductibility of expenses paid with Paycheck Protection Program (PPP) loan proceeds that are forgiven and excluded from the borrower’s income. The IRS has determined otherwise deductible expenses that are paid with PPP funds may not be deductible for federal income tax purposes to the extent the expenses were reimbursed by a PPP loan that was then forgiven. The PPP was created by Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Under the PPP, the
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Business Transition Preparedness Post COVID-19
During the ongoing management of COVID-19 restrictions, we are all trying to determine and assess the short- and long-term damage on businesses, the economy, and the capital markets. While we don’t pretend to have answers better than others, we would like to share our thoughts on the impact of the virus on M&A transactions. First off, we don’t want to trivialize the health impact imposed by the pandemic nor the human element of lost jobs, life disruptions, and family separations. Our intent is to provide our strategic thoughts while we try to maintain a sense of normalcy. Prior to the
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Learn the Business Benefits of the CARES Act
Our WFY Tax Partner, Richard Huffman, has created a 15-minute video presentation to illustrate the benefits your business may qualify for under the CARES Act. Included are the Paycheck Protection Program Loans, Employee Retention Credit and deferral and income tax benefits. Watch the video to learn which benefits apply to you. Please contact your WFY advisor to discuss how your business can benefit from these programs or you can contact us here.
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IRS Launches Economic Impact Payment Direct Deposit Portal
Today, the IRS launched a portal specifically focusing around the Economic Impact Payment. The portal is designed for taxpayers to check the status of their stimulus payment, set up direct deposit, and more. Click here to visit the Economic Impact Payment Direct Deposit portal. When clicking the “Get My Payment” button, taxpayers will be able to: Get their payment status Confirm their payment type (direct deposit or check) Other information if needed, such as their bank account information Taxpayers who want to accelerate the process of receiving their payment must add their bank account information and provide the following information:
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Disaster Relief Payment Tax Assistance to Employees Affected by COVID-19
Richard A. Huffman, CPA, MST Tax Partner The national emergency declaration on March 13 triggered a tax benefit which allows employers to make non-taxable qualified disaster relief payments to employees for reasonable and necessary expenses resulting from the coronavirus pandemic. Reimbursable expenses excludable from employee taxable income are as follows: Unreimbursed medical expenses including co-pays, deductibles, vitamins and supplements Increased expenses associated with being quarantined at home (e.g., increased utilities and home office expenses) Home office expenses include expenses associated with setting up or maintaining a home office such as enhanced internet connections, computer monitors, laptops, printers, office supplies,
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Avoid Phishing in the Time of COVID-19
As the uncertainty of the coronavirus pandemic continues, scammers are using different ways to gather your information and use it for ransom. Some websites are offering information on COVID-19 relief programs in exchange for signing up through them as a subscription or requesting a fee. With this, the websites hold your basic information ransom and could possibly cause you problems in the near future. WFY wants to make sure there aren’t any more problems for our clients who are already going through an ambiguous period of time. Fraud will only increase as the coronavirus pandemic goes on. Therefore, we advise
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