This is your friendly reminder to get your individual tax returns e-filed or postmarked by the end of today!
On Thursday April 8th, the IRS issued Notice 2021-25 providing further guidance on when the temporary 100% deduction for meals applies and when the 50% limitation continues to apply. In addition, the IRS explains the term ”restaurant” means a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business’s premises.
Additional detail is available here:
Today the U.S. Department of the Treasury has officially announced that States are allowed to conform to Federal law on PPP loan deductibility. A few weeks ago California AB 80 was stalled as the state asked for clarification on limitations in the American Rescue Plan over concern that passing AB 80 would limit Federal funds available to the state.
While this doesn’t mean PPP loan expenses will be allowed quite yet, the state legislature has been given the green light to act.
For the official press release click here:
Did you know face masks and other personal protective equipment to prevent the spread of COVID-19 are tax-deductible?
Today the IRS issued Announcement 2021-7 clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer, and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses under § 213(d) of the Internal Revenue Code. To learn more, click the link in our bio.
Therefore, amounts paid by an individual taxpayer for COVID-19 PPE for use by the taxpayer, the taxpayer’s spouse, or the taxpayer’s dependent(s) that are not compensated for by insurance or otherwise are deductible under § 213(a) provided that the taxpayer’s total medical expenses exceed 7.5 percent of adjusted gross income.
The amounts paid for personal protective equipment are also eligible to […]
The IRS and FTB have just extended the filing deadline for 2020 individual tax returns and payments from 4/15 to 5/17 giving tax professionals and individuals more time to file returns complicated by retroactive tax law changes and Covid delays.