The Importance of S Corporation Basis and Distribution Elections

December 28, 2020

S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as…

Congress Passes COVID-19 Aid Package Containing Billions in Funding and Tax Breaks

December 22, 2020

After months of negotiations in Washington, an agreement has been struck on a new aid package to address the ongoing fallout from the COVID-19 pandemic. The legislation has been passed by both the U.S. House of Representatives and the U.S. Senate, and President Trump is…

Steer Clear of the Wash Sale Rule if You’re Selling Stock by Year End

December 21, 2020

Are you thinking about selling stock shares at a loss to offset gains that you’ve realized during 2020? If so, it’s important not to run afoul of the “wash sale” rule. IRS may disallow the loss Under this rule, if you sell stock or securities…

Help May be on the Way! Deductibility of Expenses Paid With PPP Loan Funds

December 18, 2020

Help may be  on the way!  A bipartisan group of congressional policymakers recently released two compromise relief bills to address the COVID-19 pandemic, totaling about $908 billion: The Emergency Coronavirus Relief Act and the Bipartisan State and Local Support and Small Business Protection Act.  The…

How CA Shareholders Can Save Over $1,500 with SDI Exclusion

December 14, 2020

In the state of California, if you are the sole shareholder (other than your spouse) and officer of a corporation, you could save over $1,500 by electing to exclude your corporate wages from State Disability Insurance (SDI) withholding. After we wrote about this topic previously,…