A NEW Stimulus Bill is to be released and signed soon!

21 Dec A NEW Stimulus Bill is to be released and signed soon!

Here is what we know now. More details to come in the following weeks!

AS OF 12/21/2020

What is in this NEW Stimulus Bill? Information from trusted sources is here NOW ready for you, our valued client!

In a contiued effort to stay on top of the most recent information impacting our individual and small business clients, we now have the first information available on what may be in the new stimulus Bill that is to still be reviewed by Congress, passed by Senate and The House of Representatives, and signed by the President.

From our trusted sources, we are confident that the below-summarized points will be included in the final signed Bill at this point. Any changes will be provided prior to signature of the Bill, and then upon interpretation of the Bill by government agencies.

We wanted you to have this information prior to the Holiday Season.

There will be more information and details to come once the Bill is signed, and then fully interpreted by the government, but until then we wanted to let you know what will likely be finalized in it. This will likely take until mid-January 2021 to accomplish.

Again, the final interpretation may take a few weeks after the Bill is signed, so expect to receive a lot more detail in mid-January 2021 from us.

1. PPP Forgiveness will NOT be taxable – regardless of how much PPP funding that your business received. Now, expenses that were to be used for PPP Forgiveness calculations will be able to be expensed on a business’s tax return. If you already paid estimated taxes for your business on anticipated 2020 PPP forgiveness, this amount can be applied to your 2021 taxes owed next year, or refunded to you when we prepare your 2020 tax return(s).
2. There will be another round of PPP for businesses with under 300 employees. However, they must prove that they have fully used the first PPP amounts, that their gross revenue dropped by 25% or more in the 1st quarter, 2nd quarter OR 3rd quarter 2020 versus the same quarter in 2019. Applications after 2020 may use 4th quarter, and businesses that are new in 2020 may use other factors. This may change a bit once interpreted, however.
3. The forgiveness process will be simplified further for PPP loans $150,000 and less. There will now be a one page forgiveness attestation page for these loans, making the process simplified even more for these loans. This $150,000 and less simplified application should be finalized within 24 days after the Bill is signed.
4. Meals and Entertainment will be 100% deductible in 2020 and 2021 for businesses.
5. Individuals that are under certain income thresholds ($75K single and $150K married – with other phaseout amounts) will receive another round of direct payments. This time they will be $600 per adult and $600 per certain dependent. If you have your direct deposit banking information already on file from the first round of direct deposits, then many of these direct stimulus payments may be released to some of these taxpayers as soon as 12/27/2020.
6. Unemployment payments will be extended through 3/14/2021 and will now be $300/week to those that are receiving the Federal funded portion of unemployment (currently up to $600/week, and set to expire soon).
7. The EIDL advance payment (the initial amount paid up to $10,000 as a grant) will no longer be reduced in the PPP loan amount forgiven, and will not have to be paid back.
8. There are likely other stimulus benefits not yet disclosed as of today, 12/21/2020.

Again, please keep reading information from reputable sources — like Unbehagen Advisors — as this new Bill is signed and interpreted. Some of this information and details may change. However, we are confident in this information as of today as the government is likely not going to change much with it as they all want to leave for Holiday break to their families until early January 2021. So, they are VERY motivated to pass this Bill as it stands now.

More to come on this in early January 2021 as the Bill is passed and interpreted by the government agencies AND your trusted team of small business accountants and advisors here at Unbehagen Advisors

You most likely will have many questions, however, we encourage you to wait until this Bill has been signed and fully interpreted properly. It may be mid-January 2021 until it is fully interpreted.

WE WILL BE PUTTING A FULL NEWSLETTER WITH VIDEO TOGETHER ONCE FULLY INTERPRETED, LIKELY MID-JANUARY 2021. YOU SHOULD ALSO CONTINUE TO CHECK BACK TO OUR COVID-19 INFORMATION LINK ON OUR WEBPAGE AS WELL FOR THE LATEST DEVELOPMENTS.