K Scott & Associates LLC

Good news the U.S. Senate and House of Representatives passed an emergency $900 billion COVID-19 relief bill which is expected to be signed into law by the President. Additional 2020 recovery rebates for individual. The provision provides a refundable tax credit in the amount of $600 per eligible family member. The credit is $600 per taxpayer ($1,200 for Married Filing Jointly), in addition to $600 per qualifying child. The credit phases out starting at $75,000 of modified... adjusted gross income ($112,500 for Head of Household and $150,000 for Married Filing Jointly) at a rate of $5 per $100 of additional income. Extension of federal pandemic unemployment compensation. Restores the federal pandemic unemployment compensation supplement to all state and federal unemployment benefits at $300 per week, starting after December 26 and ending March 14, 2021. Clarification of tax treatment of Paycheck Protection Program loans. The provision clarifies that gross income does not include any amount that would otherwise that would otherwise arise from the forgiveness of a Paycheck Protection Program (PPP) loan. This provision also clarifies that deductions are allowed for otherwise deductible expenses paid with the proceeds of PPP loan that was forgiven, and that the tax basis and other attributes of the borrower's assets will not be reduced as result of loan forgiveness. The provision is effective as of the date of enactment of the CARES Act. The provision provides similar treatment for Second Draw PPP loans, effective for tax years ending after the dat of enactment of the provision. This treatment also pertains to the tax treatment of other loan forgiveness and other business financial assistance under the coronavirus relief legislation. The bill also extends other provisions of the CARES Act. These items effect farmers, educators and treatment of deferred payroll taxes, among others. Please contact the tax professionals at K. Scott & Associates, LLC with any questions you may have.

Just a friendly reminder the tax deadline for filing your individual income tax return or corporate tax return is July 15, 2020. If you are unable to file by the deadline you can request an additional extension of time to file your returns to October 15, 2020. Note that an extension of time to file does not extend the payment due date which remains as July 15. If you are unable to pay your tax in full by July 15 still file the extension to protect yourself from a failure t...o file penalty. Please contact the tax professionals at K Scott & Associates, LLC or your professional tax advisor concerning your tax situation. Are you dissatisfied with your tax professional? Contact K. Scott & Associates, LLC for a no strings attached free consultation. Be safe during these stressful times. Remember to wear your mask when you are out in public and do make sure you are at least six feet from one another. Together we can defeat this pandemic.

To all clients and friends. Hope that you are all safe and well during these trying times. We are working from home as many of you are. Should you need meet with me, we can communicate by e-mail, fax, telephone or by streaming. Note the fax number is 314-429-5071. If you are a small business, Schedule C, Schedule E, Schedule F, a 1099'd individual or have received a K-1 from flow through entity such as a partnership or S-Corp you may be able to receive assistance from the SB...A. Contact me or your banker if you feel you may qualify for such assistance. Working together we will be able to come through this crisis and return to a new normalcy. Remember to protect yourself by wearing a mask when you go out in public or anywhere you will be in proximity of others. Please stay at least six feet from each other.