News & Announcements

2020 Automobile Depreciation Limits Announced

Today the IRS, through the release of and advance version of Rev. Proc. 2020-37 has announced the 2020 Depreciation Limits on Passenger Automobiles.  These limits remain un-changed from the 2019 tax year and are as follows:

Depreciation limitations for passenger automobiles acquired after September 27, 2017, and placed in service during calendar year 2020, for which the § 168(k) additional first year depreciation deduction applies:

1st Tax Year $18,100

2nd Tax Year $16,100

3rd Tax Year $9,700

Each Succeeding Year $5,760

Depreciation limitations for passenger automobiles placed in service during calendar year 2020 for which no § 168(k) additional first year depreciation deduction applies  

*(1) does not use the automobile during 2020 more than 50% for business purposes, or (2) elected out of the additional first year depreciation deduction, or (3) acquired a used automobile that fails to satisfy the statutory rules, or (4) acquired the automobile before September 28, 2017, and placed it in service after 2019.:

1st Tax Year $10,100

2nd Tax Year $16,100

3rd Tax Year $9,700

Each Succeeding Year $5,760

*Inclusions of Income for Leased Passenger vehicles have also been released and can be found in table 3 in the official publication here.

Paycheck Protection Program Extension Act Now Law

On Saturday, July 4th, 2020 President Donald Trump signed into law The Paycheck Protection Program Extension Act. The U.S. Senate passed the extension of the Paycheck Protection Program (PPP) on Tuesday night just a few hours before the close of the program. By Thursday it had also passed the House. The extension allows for 5 additional weeks, until August 8th, 2020 to apply for the SBA funding. The legislation is intended to provide more time for businesses to apply for the estimated $130 billion in funding still remaining.

This move came less than a month after both Houses of Congress passed with unanimous consent the Paycheck Protection Program Flexibility Act (PPPFA) in an attempt to address many concerns expressed by the small business community around the Paycheck Protection Program (PPP) aimed at providing COVID-19 relief. The act included provisions to reduce the amount borrowers need to spend on wages and allowed for more time to use those funds.

To help keep small businesses afloat, the CARES Act provides that businesses with fewer than 500 employees, including sole proprietors and nonprofits, will have access to nearly $350 billion in loans through the Small Business Act during the “covered period,” which ran from February 15, 2020, through June 30, 2020. The loans, which are referred to as “paycheck protection loans” and are fully guaranteed by the federal government through December 31, 2020.

Senate Passes PPP Loan Extension

The U.S. Senate has passed an extension of the Paycheck Protection Program (PPP) on Tuesday night just a few hours before the close of the program.  The extension allows for 5 additional weeks, until August 8th 2020 to apply for the SBA funding.

Before the extension can take effect it still needs to pass the House and be signed by President Donald Trump.   It is expected that the House of Representatives will pass the measure this week.

The legislation is intended to provide more time for businesses to apply for the estimated $130 billion in funding still remaining.

This move came less than a month after both Houses of Congress passed with unanimous consent the Paycheck Protection Program Flexibility Act (PPPFA) in an attempt to address many concerns expressed by the small business community around the Paycheck Protection Program (PPP) aimed at providing COVID-19 relief.  The act included provisions to reduce the amount borrowers need to spend on wages and allowed for more time to use those funds.

To help keep small businesses afloat, the CARES Act provides that businesses with fewer than 500 employees, including sole proprietors and nonprofits, will have access to nearly $350 billion in loans through the Small Business Act during the “covered period,” which ran from February 15, 2020 through June 30, 2020. The loans, which are referred to as “paycheck protection loans” and are fully guaranteed by the federal government through December 31, 2020.

SBA Re-opens Economic Disaster Relief Loan Program to all U.S. Businesses

The Small Business Administration is now accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications from qualified small businesses AND U.S. agricultural businesses.

Small business owners and qualified agricultural businesses in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).

Agricultural businesses are now eligible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.

  • Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
  • SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.

The application is submitted directly through the SBA using this link.

Advance Payment of Employer Credits Due to COVID-19

There are 2 related credits for payroll taxes, one for Sick and Family Leave and one for the retention of employees.  Only one credit may be claimed against anyone wage.   Businesses who opted to take advantage of the Payroll Protection Program (PPP) are NOT eligible for Employee Retention Credit.  Those who have PPP funds may apply for the Sick and Family Leave Credit but will not have those wages forgiven.

pdfAdvance Payment of Employer Credits Due to COVID.pdf

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