Partial PPP Conformity Bill: On April 29, 2021, Governor Newsom signed into law Assembly Bill No. 80 (“AB 80”). Providing partial conformity to the Federal tax treatment for deducting expenses. These are paid with Paycheck Protection Program (“PPP”) loans, EIDL advance, and targeted grants. Below are some of the key highlights of the bill’s provisions:
Deducting Meals and Entertainment Expenses: While the Tax Cuts and Jobs Act (TCJA) of 2017 eliminated many deductions for business meals and entertainment. There are still some deductions available. Most of the deductions are in the form of business meals. There are select exceptions of when a business can also deduct entertainment expenses.
Traditional and Roth IRAs are great tools to use for financial, estate, and retirement planning. One way individuals “turbocharge” their IRA’s performance is to use a self-directed IRA, which is able to hold alternative investments that offer potentially higher returns. Although this is a useful feature, there could be some tax-traps that have the ability to throw a wrench into your plans if your self-directed are not carefully attended to.
California PPP Tax Conformity: Although it is no secret that California has yet to release information on whether or not it will partially conform state tax code to the current federal tax rules regarding forgiven Paycheck Protection Program (PPP) loans, CalCPA has shared why the delay is taking place.
Individual Tax Deadline Extended: The Internal Revenue Service (IRS) and Treasury Department announced today the 2020 tax year federal income tax filing due date for individuals has been automatically extended from April 15, 2021 to May 17, 2021. Just like last year, taxpayers do not need to file additional forms for the May 17, 2021 deadline. Formal guidance will be coming from the IRS soon.