Planning for
Year-End & 2021
Welcome to the new and improved
"The Kernutt Stokes Advisor"
Like just about everything else that happened this year, our regular e-newsletter for our clients with helpful articles and links was instead replaced with numerous announcements about COVID-19 and programs such as the Paycheck Protection Program (PPP) that were a result of the pandemic. We will continue to send important announcements in a timely manner as well as get back to sending you "The Kernutt Stokes Advisor" on a regular basis.

As we near the end of 2020, we would like to take a moment to recognize and celebrate that this year was also the 75th anniversary of Kernutt Stokes. We sincerely thank the community and clients that have made this possible - it is a privilege to serve your business. We look forward to providing accounting, tax, and business consulting services for another 75 years!
Tax Relief Strategies for Resilience
As the world continues to contend with the COVID-19 pandemic and its economic fallout, businesses are doing all they can to mitigate risks and plan for a recovery that’s anything but certain.

The tax function plays a critical role in navigating recovery and positioning businesses to emerge from this crisis more resilient than before. Effective tax strategy can preserve liquidity, lower costs and work in tandem with overall business strategy.
Potential Tax Policies
Under Biden Administration
On November 7, the Associated Press (AP) called the presidential election for former Vice President Joe Biden. While several legal challenges remain, President-elect Biden's transition is now underway. Although President-Elect Biden has not released a formal, detailed plan addressing his vision for the tax code, we can gain a sense of how his approach differs through casual mentions of some aspects of tax policy on the campaign trail.
From the Kernutt Stokes Blog
Matthew Diment
Year-End Tax Planning
by Matthew Diment, Senior Manager
With the end of the year quickly approaching, now is the time for any last-minute planning to reduce taxable income for the year and plan for 2020 and 2021 taxes. As a reminder, any loan forgiveness under the Paycheck Protection Program is currently anticipated to create taxable income. 
Year-End Reminders
Do you need to file 1099s?
Make sure you know about changes for 2020.

Do you have employees?
Make sure you know the year-end reporting and compliance requirements and what's changing in 2021.
Do you have an S Corporation business? Don't forget benefit reporting rules that require health care plan costs to be included on an owner-employee's W-2.
In Case You Missed It
IRS Issues Guidance on Timing of Non-Deductible Expenses with PPP Loans

The IRS recently issued guidance regarding the timing of non-deductible expenses related to Paycheck Protection Program (PPP) loans in Revenue Ruling 2020-27.
 
Included in the guidance is that eligible expenses used or to be used to obtain loan forgiveness will be non-deductible in the year the taxpayer reasonably expects to be reimbursed in the way of PPP loan forgiveness whether or not the loan is forgiven in 2020 or 2021.

It is important to note that members of the Senate Finance Committee did not support the guidance so it is possible that changes may be made to the guidance. We will keep you updated as we learn more.
Kernutt Stokes Technology Group Partners with Sage Intacct
Sage Intacct is the market leader in cloud-based financial management. A native cloud solution, Sage Intacct allows you to automate accounting processes, increase visibility with powerful reporting tools, and make informed decisions with real time data. Contact us to learn more.
Local Updates
Eugene Payroll Tax Reminder

Eugene's new Community Safety Payroll Tax becomes effective January 1, 2021. If you are a Eugene employer who pays wages to employees or are self-employed with a physical address within Eugene city limits, you must register and file with the city of Eugene.
Portland Metro Supportive Housing Tax

Starting January 1, 2021:
  • Individual taxpayers with taxable income over $125,000 (single) or $200,000 (joint), that live or have sourced income in Metro Portland's jurisdiction will be subject to a 1% tax on income above these thresholds.

  • Businesses will be subject to 1% for everywhere gross receipts over $5 million.
Resources
Oregon Commercial Activities Tax (CAT)
We have created a summary of some of the key provisions of the Commercial Activities Tax (CAT tax), including subsequent administrative guidance issued through the date of this document.
Meet Kernutt Stokes
Due to COVID-19, meeting prospective and new clients looks a bit different this year. Meetings are held via video conference, and while we look forward to when we can meet in person again, we created a video to provide an overview of Kernutt Stokes.
Bend | Corvallis | Eugene | Lake Oswego
541-687-1170