Great News-your obligations are canceled… Bad News – the Internal Revenue Code taxes that as income, and you’re getting a tax bill. The cancelation of debt (COD), or discharge of indebtedness, gives rise to taxable income unless an exception applies. The imposition of tax on this phantom income takes many taxpayers by surprise, and as…
After the shutdowns and economic mayhem that has turned your once profitable business into a shell of its former self, can you simply file for bankruptcy, get a fresh start and move on with life? If it was only that easy. Too often, companies file for protection only to be blindsided by the administrative burdens,…
Share On March 19, 2020, Senate Republicans released a draft bill intended to start the discussion with Senate Democrats on Phase 3 coronavirus legislation. The bill includes a lot of significant tax and non-tax provisions for individuals and businesses. Let’s start with a summary of some of the more significant provisions affecting businesses. Provides loans…
Share During these trying times, Congress is actively looking for ways to provide relief to individuals affected by the pandemic. Two separate pieces of legislation have been enacted, and a third stimulus bill is currently being negotiated in the Senate. But there is already a relatively obscure provision in the tax code that provides relief…
Share The U.S. Small Business Administration (SBA) has declared all counties within the States of New Jersey, New York, and Pennsylvania, as being eligible for disaster loans as a result of COVID-19. SBA’s Economic Injury Disaster Loans (EIDLs) offer up to $2 million in assistance per small business. These loans may be used to pay…
Share The business world has been turned upside down amid the COVID-19 pandemic, in particular neighborhood businesses in the hospitality and entertainment industries have had their lifeline taken from them. The lifeline of any business is its cash flow. Bonnie & Clyde didn’t rob banks for the toasters! Business owners need to quickly perform a…
Share As the world looks to navigate its new “norms” in this uncharted environment sparked from the Coronavirus outbreak, nonprofits are left wondering how to maintain their revenue streams during what’s traditionally been the spring fundraising event season. As fundraising events typically garner large in-person groups of donors and supporters, many nonprofits are postponing and…
A REIT must distribute at least 90% of taxable income in order to meet REIT testing requirements. It will pay tax on the remaining 10% of that income at a rate of 21%. A REIT is special because it can deduct dividends paid on its federal tax return to the extent it has earnings and…
Share The Senate voted and approved the Families First Coronavirus Response Act to provide taxpayers with a range of benefits, including (i) employer tax credits, (ii) paid sick and family leave for employees, (iii) expanded food and nutrition services, (iv) emergency state unemployment insurance grants, and (v) increased Medicaid funding to states, among other things….
Share Breaking news from Withum’s Advisory Management Consulting team where ERP and CRM Software Implementations and Software Evaluation projects continue with some TWISTS. The first twist for some, if not many, is performing work at many disbursed physical locations, like homes, while staying collaborative and connected. Withum’s Digital Solutions team has published information relating to…