NEW STIMULUS PACKAGE EXPLAINED!
KJ Tax and its team strongly believe and have faith that great things will come from the Pandemic. This too shall pass!
From all of us at KJ Tax & Accounting, Merry Christmas, Happy Holidays and a blessed New Year to you, your family, and your businesses. We are finding creative ways to thrive through these most difficult times. We are very grateful and thankful to be able to serve you.
Good News is Here- Most comprehensive bill passed by Congress ever recorded-5,300 plus pages!
Here are the TOP highlights of the new Stimulus bill passed late Monday night, December 21st, 2020 subject to President Trump signing into law-
INDIVIDUALS
Stimulus Checks-Most Americans including dependents will receive $600 per Individual. Income limits apply
Additional Unemployment assistance for 11 weeks $300 per week.
Possible Loan Forbearance on mortgages- up to one year no payments.
Rent Assistance
Penalty Free access and right to repay retirement distributions up to $100,000 per disaster per individual.
For Business owners, Net operating loss carrybacks to 2017 to offset tax owed plus interest.
Charitable Contributions, above the line $300 per individual deduction before year end to your favorite charity.
And much much more to come.
BUSINESS
Second Round of Payroll Protection Plan forgivable Loans- More than last time for restaurants, bars, venues, arts. More expenses allowed, amount used for payroll decreased to 60%,
First Round of Payroll Protection Plan not included in Income, meaning payroll and other costs still deductible reducing profits and tax.
Improved IRS Employee retention credit, sick pay both individual and family, employer paid health insurance and much more.
Second Round of SBA Economic Injury Disaster Loans with up front grant of $10,000.
No fee SBA Loans, no payments on existing and new 7(a) and 504(b) loans for 6 months, 8 months for for restaurants, bars, venues, arts and certain other businesses.
Net Operating Loss carrybacks for losses incurred in 2020 2021 offsetting tax owed or refunding tax already paid plus interest.
And much much more.
HOW MUCH IS THIS GOING TO COST?
For Individuals-
KJ Tax will be going with the same pricing model as last year. The only difference is that we will be pricing our individual and tax returns out by form. This usually means no changes to the price you will find in your engagement quote coming out shortly to you, your family and your business.
For business-
Normal tax and accounting fees will apply plus-
In most cases, KJ Tax will be assessing a 1% to 3% service fee based on the entire amount of financial resources received by the businesses that we helped obtained in exchange for the proper accounting, expensing and forgiveness of the PPP loan, EIDL Grant, EIDL Loan and various grant programs offered and accepted by our business clients.
Example, KJ Tax & Accounting, LLC has helped ABC Company retain a Payroll Protection Program Loan of $120,000, an SBA Economic Injury Grant of $10,000, an SBA Economic Injury Loan of $150,000, a Weβre All In grant from the State of WI for $7,500. The total Economic Aid received for ABC totals $287,500.
The service fee for the proper accounting of the funds including applying for more Stimulus funding when it becomes available, including the forgiveness application for the 1st round of Payroll Protection would be 1% of $287,500 or $2,875 fee payable to KJ Tax.
The service fees, if applicable to you will be a one-time charge before the end of December 31st, 2020. Payment arrangements can be made by auto debit withdraw or auto credit card payments not to exceed 12 months.
Please keep a watchful eye over the next couple of weeks as we will be updating all of our clients about action items regarding PPP forgiveness, stimulus, tax law changes, additional Payroll Protection Programs and other financing programs that may positively impact you in the near future.
In the meantime, please look for your engagement letter explaining our services for the remainder of 2020 and next year 2021.
Please reach out to Lisa Filicetti, Executive Assistant, 262-514-3800 if you have any further questions regarding your account. She will be certain to get you connected to one of our specialized team members to help you.
With this sweeping 5,300 plus page legislation package, there is much to go through and decipher over the next few weeks.
KJ Tax will be prepared ready to do whatever it is possible to maximize your financial strength and minimize your taxes to the least legal amount to help your family and your business get through the maze and mess.
One thing for certain, is we will be on top of it to help you realize the most assistance possible. We will be reaching out soon again.
KJ Tax, AOS and QBO Hero, LLC and it's team are very thankful and grateful for the opportunity to serve you. We understand the struggles and successes of life. We want to help you get through the hard times and celebrate the good times to come.
Please reach out to Lisa Filicetti, Executive Assistant, 262-514-3800 if you have any further questions regarding your account. She will be certain to get you connected to one of our specialized team members to help you.
From all of us at KJ Tax & Accounting, LLC, thank you for your continued business and trust. This means the world to us and our families. Stay safe and warm throughout the holiday season. God please Bless America.
Yours Truly.
James N Filicetti, CPA
The Helpful KJ Tax & Accounting Team
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