The Roth “five-year rule” typically refers to when you can take tax-free distributions of earnings from your Roth IRA, Roth 401(k), or other work-based Roth account. The rule states that you must wait five years after making your first contribution, and the distribution must take place after age 59½, when you become disabled, or when […]
Paycheck Protection Program Flexibility Act
If you applied or are planning to apply for a Paycheck Protection Program (PPP) loan, we want to share some good news with you. On June 5, 2020, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law. The PPPFA modifies the PPP to allow businesses whose PPP loans are forgiven to continue to […]
ATTENTION! HARFORD COUNTY COVID-19 BUSINESS & FARM RELIEF GRANTS
Q&A: Are PPP Loan Forgiveness Expenses Deductible?
Question If I obtain Paycheck Protection Program (PPP) loan forgiveness, can I still deduct the business expenses I paid with the loan forgiveness proceeds? Answer We have bad news—the IRS just released Notice 2020-32 telling us the answer is no. Quick Review As we discuss in COVID-19: New SBA Loans for Small Businesses – Maybe […]
COVID-19 Crisis Creates Silver Lining for Roth IRA Conversions
For years, financial and tax advisors have lectured about the wonderfulness of Roth IRAs and why you should convert traditional IRAs into Roth accounts. But, of course, you didn’t get around to it. In hindsight, maybe that was a good thing. For many, the financial fallout from the COVID-19 crisis creates a once-in-a-lifetime opportunity to […]
COVID-19: Tax Benefits for S Corporation Owners
To help your small business, Congress created a lot of new tax-saving provisions due to the COVID-19 pandemic. Many of my clients own and operate S corporations and expect the tax law to treat them differently, as it does with their health insurance deduction. Perhaps you, too, would like us to help clarify which of […]
Five Key Benefits of the CARES Act for Individuals and Businesses
By now you know that Congress has passed a $2 trillion relief bill to help keep individuals and businesses afloat during these difficult times. The Coronavirus Aid, Relief, and Economic Security (CARES) Act contains many provisions. Here are five that may benefit you or your business. 1. Recovery Rebates Many Americans will receive a one-time […]
Small Business Loans for COVID-19
Maryland has authorized $130 million in loan and grant funding for small businesses and manufacturers that have been negatively impacted by the Coronavirus (COVID-19). This emergency assistance provides interim relief and proceeds that can be used to pay cash operating expenses including payroll, suppliers, rent, fixed debt payments and other mission critical cash operating costs. If […]
Coronavirus Concerns? Consider Past Health Crises
During the last week of February 2020, the S&P 500 lost 11.49% — the worst week for stocks since the 2008 financial crisis — only to jump by 4.6% on the first Monday in March.1 By all accounts, the drop was largely driven by ever-increasing fears about the potential effects of the coronavirus (COVID-19) and its […]
February 4, 2020: Harford County Referral Partners Networking Event – 510 Johnny’s
Our Owner & President, Carl Strozyk, was the guest speaker at Harford County Referral Partners’s Luncheon, at 510 Johnny’s, on Tuesday, February 4, 2020. Carl gave an Income Tax Update with a focus on reviewing 2018 Tax Law changes along with 2019 Updates, 2019 Extenders and explained the SECURE Act of 2020.
