Written by David Wheeler Newman Senators Chuck Grassley and Angus King on June 9 announced their intention to introduce tax legislation, dubbed the “Accelerating Charitable Efforts Act”, or the “ACE Act”, that would have major impacts on donor advised funds (DAFs) and private foundations. This post will discuss the proposed changes to the private foundation rules, and the next post will discuss those affecting DAFs. … Continue reading Proposed Legislation Would Affect Private Foundations
Written by Jeffrey D. Davine The new COVID relief bill extends (and modifies) certain provisions that were included in the CARES Act that was enacted in March. This legislation, signed by the President on December 27, will provide $900 billion of additional financial assistance to individuals and businesses that have been affected by the pandemic. Among the provisions contained in the new legislation is funding for additional … Continue reading New COVID Relief Legislation Provides Tax Benefit
Written by Rachel Ronca Proposition 19 will essentially end your ability to transfer real estate to your children free of property tax reassessment. If you have a legacy property that you intend to pass to the next generation (regardless of whether it is your home, or it is a rental, commercial or industrial property), you must act quickly. Generally, when real estate changes ownership, the property … Continue reading Proposition 19 Set to End Major Property Tax Exemption
Written by Jeffrey Davine The Executive Order. On August 8, 2020, in response to the negative effects of the COVID-19 pandemic on America’s economy, President Trump issued an executive order permitting employers to defer the withholding and remittance of the employee’s share of the 6.2% Social Security (FICA) tax that is required when wages or salary are paid during the period September 1, 2020 through … Continue reading Temporary Deferral of Employee Social Security Tax Withholding: Is It Really Worth It?
Written by Jeffrey Davine
COVID-19 Related Legislation
As has been widely publicized, the federal government has enacted legislation that is designed to provide tax and other relief to employers as a result of the COVID-19 crisis. The tax relief is principally in the form of tax credits for payroll taxes that an employer is required to remit to the IRS when paying wages to its employees.
One of the laws enacted is the Coronavirus Aid, Relief, and Economic Security Act (the “CARES” Act). The CARES Act was signed into law on March 27th. It provides for a refundable payroll tax credit for employers whose businesses have been adversely affected by the Coronavirus.
Another statute enacted is the Families First Coronavirus Response Act (the “FFCRA”). It was signed into law on March 18th. The FFCRA provides small and midsize employers with refundable payroll tax credits to reimburse them for the cost of providing paid sick and family leave wages/salary to employees for an absence that is related to COVID-19.
The relief that is provided by both of these laws applies to both for-profit and nonprofit entities. Continue reading “COVID-19 Tax Relief”
CARES Act Tax Benefits for Charitable Contributions
Written by David Wheeler Newman
The CAREs Act – the recently enacted gigantic economic stimulus bill – contains two provisions designed to boost charitable giving with enhanced tax benefits. One provision will provide tax savings to donors making more modest gifts, while the other will benefit donors writing big checks. Continue reading “Charitable Contributions Show You CARE”
Charitable Organizations May Apply for Forgivable Loans Under the CARES Act
As part of the unprecedented $2 Trillion stimulus package (the CARES Act), charitable organizations exempt under Internal Revenue Code section 501(c)(3) with 500 or fewer employees may apply for loans under the Paycheck Protection Program (PPP) provision of the Act.
All loans to qualifying charities will have the same terms: Continue reading “Paycheck Protection for Non-Profits”
Tax and Employee Benefits Provisions of the CARES Act Written by David Wheeler Newman The Coronavirus Aid, Relief, and Economic Security Act (the “Act”) contains numerous provisions, intended to stimulate the economy, which will impact tax liability and compliance for individuals and businesses. Some of the important provisions are highlighted below. There are many additional provisions in this legislation impacting taxpayers and the below summary … Continue reading America CARES
Tax Return Filing and Payment Extensions
Written by Jeffrey Davine
As a result of the Coronavirus crisis, Treasury Secretary Steven Mnuchin recently extended the deadline for payment of 2019 federal income taxes from April 15th to July 15th. This extension, however, did not apply to the filing of 2019 tax returns.
Today, the Treasury Secretary announced that the filing deadline for 2019 tax returns would be extended to match the new payment deadline. Continue reading “Tax Filing Reprieve”
Written by David Wheeler Newman Treasury Secretary Steven Mnuchin announced that individual taxpayers may defer payment of tax bills up to $1 million for ninety days, interest and penalty free, as part of a coronavirus stimulus bill announced by the administration on March 17. According to the Secretary, the $1 million limit is intended to provide relief to small businesses and pass-through entities like partnerships … Continue reading Federal Tax Payments May Be Delayed 90 Days