American Rescue Plan Act Enacted: On 3/11/21, President Biden signed the American Rescue Plan Act of 2021 (P.L. 117-2), which provides for $1.9 trillion in relief funds. In addition to the expansion of some personal credits and unemployment exclusions, the bill provides $1,400 ($2,800 for eligible individuals filing a joint return) plus $1,400 for each
Deductibility of business meals provided by restaurants in 2021 and 2022. The recent stimulus legislation included a provision that removes the 50% limit on deducting business meals provided by restaurants in 2021 and 2022 and makes those meals fully deductible. Here are the details. In general, the ordinary and necessary food and beverage expenses of
At the end of 2020, Congress passed, and President Trump signed, a new law that provides for additional relief related to the coronavirus (COVID-19) pandemic. This law, the Consolidated Appropriations Act, 2021 (CAA, 2021), includes a second draw of Paycheck Protection Program (PPP) loans (PPP Second Draw Loans). It also allows businesses to deduct ordinary
The following outlines the tax consequences of the Paycheck Protection Program (PPP) loans in connection with the coronavirus (COVID-19) crisis. An eligible recipient may have a PPP loan forgiven in an amount equal to the sum of the following costs incurred and payments made during the covered period: Payroll costs Interest (but not principal) payments
The Paycheck Protection Program (PPP) Flexibility Act (“PPPFA”) of 2020 (H.R. 7010) bill was signed June 5, which provides more flexibility for participants in the PPP program, including allowing those participants to defer the payment of certain payroll taxes that the CARES Act prevented them from deferring. The CARES Act contains a provision, Act Sec.