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- Client Question: “I am wondering if it is known yet: Are there restrictions on the usage of any funds that are not ultimately forgiven? Do they have to be used for payroll and utilities and will that be monitored in some way, or can those unforgiven funds be used for any business operating expenses at the company’s discretion?” Limit your usage to permitted expenses only. Answered by Aria D. Eckersley
- Many individuals and businesses have sustained economic losses as a result of the COVID-19 pandemic. Those that have incurred losses as a result of the pandemic may be able to claim losses sustained in 2020 on their 2019 tax returns in order to accelerate the tax benefits of these losses. Talk to your tax and financial advisors. Authored by Joseph Perera
- The COVID-19 pandemic has greatly impacted the economy and has disrupted numerous deals and investments. Several tax incentives require taxpayers to take particular actions within a certain time frame. In particular, taxpayers must meet certain benchmarks within certain timeframes in order to obtain the tax benefits of qualified opportunity zone funds (“QOFs”). Because of the pandemic, taxpayers may face difficulty in complying with the requirements necessary to obtain the benefit of investing in QOFs. Recently, the IRS issued Notice 2020-39 which provides relief for taxpayers investing in QOFs. Note the deadline extension and review our breakdown. Authored by Joseph Perara