Some huge news is happening for Hampton Roads business owners, that I’m sure you’ve heard rumors about, so I wanted to reach out to you quickly with some first-blush details.
I also wanted to offer this:
If you have business associates or friends who need help ensuring that they receive ALL of the benefits available to them from this new “CARES” bill, the stimulus bill, we are here to help.
And look … I know many are happy with their existing accounting setup. That’s wonderful, and we’re not anxious to “steal” clients from other good accountants.
But we are also already digging into the 880-page stimulus bill, looking for goodies for our Hampton Roads business owner clients … and have a few ideas already.
I’ll share a couple today, but there will be more to come.
So, have your business owner or solopreneur friends give us a call: (757) 857-1880 or shoot me an email through the email button at the top of the page, and we’ll get them handled.
We’re in your corner.
So, let’s get to the good stuff.
There will be MUCH to say about these in the next few weeks, and they are the big headlines that everyone is talking about. It seems like (from my reading of the stimulus bill), that (per Section 4003): “until the date 12 months after the date the loan or loan guarantee is no longer outstanding, the eligible business shall not pay dividends or make other capital distributions with respect to the common stock of the eligible business.”
The devil is in the details on these bills.
Be VERY careful rushing into these things without guidance, as this section seems to indicate that they don’t want someone taking the money out of the business for personal use.
Since many Hampton Roads small business owners use the S Corp structure and take some payment in salary and some in distribution, exactly HOW this will get handled is unclear.
We will pay attention to this for you.
Net Operating Loss Carryovers
This is actually a ROLLBACK of some of the aspects of the “Trump Tax Code”.
If you had a loss in 2018, 2019 or WILL have one in 2020 … you will be able to carry that loss BACKWARDS (for up to five years), and not just forwards,
This is a complete change from the existing code, where you could only carry losses forward.
What this means: if your business is struggling and you will have a loss this year, we can take those losses, amend previous returns and get MASSIVE refunds for your business on tax already paid.
Again, the devil will be in the details (i.e., the exact guidance), but this is very exciting for my clients.
Freelancers/Solopreneurs WILL be eligible for unemployment benefits. (!)
At least as of now, and the details and eventual IRS guidance WILL matter (which is why we’re here to help you). But from what I’m seeing, if your side-hustle or freelance business has been affected, you WILL get relief through this bill … and it could be significant.
The feds seem to be leaving it up to the states as to how this will get deployed, which is why you will want someone in your corner for this.
Don’t rely on any “hype” you see in the media or other tax professionals. Get the detailed, creative help you need.
So again … send your friends our way, if they want help.
They should NOT go alone through this stuff.
Alright, more to come soon.
Virginia Accounting Services
PS — Let me also say again: If your business is getting massively impacted, let’s talk.
We will get through this. Together.
I’m grateful for our chance to serve you and your Hampton Roads business — and we are dedicated to its success, in every season.
Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.