As of January, 2021, you will not be able to deduct payroll expenses that you paid for with a PPP loan. However, several Congressmen are moving in Congress to try to pass a law allowing you to deduct those expenses. They claim that to deny your deductibility for those expenses violates the CARES Act.
Will The IRS Be More Focused On Crypto-Currency For The 2020 Tax Filing Season?
The IRS will now be looking much more closely at all cryptocurrency. The use of cryptocurrency through several types of coin has grown tremendously over the past few years. In fact, any time the IRS asks for financial information from the tax payer, they always include questions about cryptocurrency.
What Are Things I Should Be Concerned With When It Comes To Documentation Of Any Cryptocurrency Earned Or Lost That I Will Be Including In My 2020 Tax Filings?
When you save documentation for cryptocurrency, you will need the same documentation as if it were stocks or land. The IRS treats cryptocurrency as property and that is the way it is taxed.
Should I Have A Financial Advisor And A Tax Attorney, If I’ve Gained Or Lost Cryptocurrency In 2020?
You definitely should have a professional help you because the rules concerning the taxation of cryptocurrency are very complicated. There are different treatments depending on whether you are using the cryptocurrency as an investment or using it to buy and sell goods.
Is There A Certain Threshold Of Loss Or Gain Of Cryptocurrency That Must Be Reported To The IRS For The 2020 Tax Year?
You should report all gains and losses of cryptocurrency. Think of it as the purchase or sale of stock or land. Keep records and report all gains or losses.
Are There Adjustments To Income From Charitable Contributions Related To The Corona Virus Stimulus Bill That Can Be Claimed For 2020?
Under the CARES Act, if you do not itemize, you can still claim up to $300 in cash contributions to recognized charities. If you itemize, the IRS has taken off the limit to the amount you can deduct from recognized charitable contributions.
Will I Need To Provide Receipts From Charitable Donations made In 2020 When Filing My Taxes?
You need to keep all receipts for charitable contributions, in case you are audited. The IRS does not require that you send them in with your return.
Is The IRS Looking More Closely At 1099 Reporting And Filings For 2020?
There is a big surge within the IRS to follow 1099s to see if they are being filed by the employer and being reported by the employee. Be sure to report correctly and accurately what you have received.
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