Teresa Harrigan Business & Tax Services

There is no such thing as FREE PPP and EIDL loans don't need to be claimed as income = the expenses paid with those loans can not be claimed as deductions. Consider when you get a loan to purchase a home, you do not claim the loan as income, you also do not get to claim the purchase of that home as an expense (you get to write off the interest you pay, if you qualify, but not the principal). ... The PPP loans were originally to keep employees from going on unemployment. Hence if you use at least 75% of the PPP loan to pay your employees, you aren't supposed to have to pay it back. The remaining 25% would have to be used to pay other allowable expenses, rent/mortgage, utilities, etc. The money was suppose to mainly flow thru the employer to the employees. If the employers retain their employees, their State Unemployment Insurance (SUI) rate does not go up due to the employees filing for unemployment. The employers do not have to pay higher Federal Unemployment Taxes (FUTA) to repay what the State borrowed to cover the Unemployed. With over 6 million people getting unemployment, consider what will happen to the employer's State and Federal Unemployment rates. Pro; The employees still get a paycheck and still pay their taxes instead of going on unemployment. Con; The employers don't get the writeoffs of the payroll and other expenses paid with the loan money. If the incoming loan money does not have to be claimed as income, why would the expenses paid with that money be claimed as a deduction.

For those of you wanting information regarding the stimulus payments. If you filed a 2019 or 2018 tax return using direct deposit or direct debit and/or receive Social Security benefits via direct deposit, stimulus payments will start being direct deposited into your account in 2 weeks. More options for small business employers to pay their employees instead of layoffs include Paycheck Protection Plan. Financial Institutions have joined in for low interest loans to help keep your businesses and employees going, as well as Small Business Administration loans.

If you just abbreviate to 1/1/20 someone can write in other numbers. 1/1/2001-12/31/2099

IMPORTANT IMPORTANT IMPORTANT If you own a house or property in California please repost. Major property tax increases are on the launch pad as California politicians try to repeal prop 13 by slipping it under the radar. California's Attorney General, Xavier Becerra is putting together plans to raise property tax revenue by eliminating the only thing keeping some people's property tax from sky rocketing, Prop 13. Because they know it will be unpopular if presented as "Repeal ...Prop 13," Xavier Becerra has strategically relabeled it "Education and Local Government Funding." It's already on the 2020 ballot and much like the gasoline tax, it will be worded in a way that misleads California voters. People renting may see it as a way to get something for nothing, but the long term result will be higher rents to pay due to the increase in property taxes. People are leaving the state in record numbers, and many here are barely hanging on, this could be something that changes the face of California forever. You must really study the propositions, the wording can be tricky and misleading. All my California friends and family, please copy and repost as this must be defeated.

2019 extended tax season is over in just 13 days. If you haven't filed yet, you should get busy.

Thank you Jackie Burch for the wonderful review. I am glad I was able to help.