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A Look at the Tax and PPP Loan Provisions in the Consolidated Appropriations Act
Posted by Jenna Peabody on Tue, Dec 29, 2020 @ 04:32 PM

On Dec. 27, 2020, President Trump signed into law the Consolidated Appropriations Act (the Act) that had been passed with overwhelming majorities in both Houses of Congress on December 21. Trump delayed the signing as he pursued, with the approval of Democratic members of Congress, an increase in the amount of Recovery Rebate checks from $600 to $2,000. Without explanation or fanfare, the President signed the bill to the surprise of members of both parties. On Dec. 28, the House passed a stand-alone bill to increase the stimulus payments to $2,000, but with voting along party lines it is expected to die in the Senate.

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Topics: individual tax, tax, tax deductions, Charitable contribution planning, Paid Family Leave, Paycheck Protection Program, PPP Loan, Stimulus, Employee Payroll Tax Deferral, Consolidated Appropriations Act

Your Guide to Tax Planning in 2021
Posted by Joanna Powell on Thu, Dec 10, 2020 @ 12:13 PM

The IRS and the Social Security Administration have released 2021 inflation-adjusted figures for more than 50 tax provisions. In addition to a 1.3% cost-of-living adjustment (COLA) for Social Security beneficiaries, details about adjustments to tax rate schedules, exemptions, and various thresholds for deductions and credits were announced. The tax year 2021 adjustments generally are used on tax returns filed in 2022.

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Topics: individual tax, tax planning, tax deductions, business tax, Taxes, cost-of-living, tax credit, Tax Cuts and Jobs Act, TCJA, Joanna Powell, COLA, AMT

Who Deducts Transaction Costs - Acquiring Corporation or Target Corporation?
Posted by Kristen Shepley on Thu, Mar 13, 2014 @ 09:18 AM

When one corporation acquires another, the legal, advisory and facilitation costs can be significant. Not only must the taxpayers determine to what extent those transaction costs are currently deductible, but they must also determine whether those costs are allocable to the target corporation immediately before the transaction or to the affiliated group after the transaction. Those determinations may impact tax attributes that pass to the affiliated group as well as who benefits from those tax deductions.

When a target corporation ("Target") is acquired and becomes part of the consolidated group of an acquiring corporation ("Acquiring"), Target's tax year ends on the date of acquisition and it must file a short-year tax return. Its short tax year closes at the end of the day of its status change (known as the "end of the day rule"). Subsequent to the date of acquisition, its activity becomes includible in the tax year of the common parent. The taxpayers may make an election under the consolidated return regulations to ratably allocate general items of income, gain, deduction, loss and credit between the two periods.

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Topics: tax issues, acquiring corporation, target corporation, tax deductions

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