In the News
PPP at 8 or PPP at 24 Weeks … Which Best for You? Read this First
Under new PPP regulations, borrowers with loans dated June 5th or earlier can elect to use either the original 8-week schedule or the new 24-week schedule to spend their PPP funding while still qualifying for forgiveness. Meanwhile, later borrowers are automatically subject to the 24-week period. For those early borrowers, there can be significant consequences - and benefits – depending on their decision – read on. Tempted at 24 but maybe 8? Although many borrowers might be tempted...
HOW TO GET READY FOR “PPP FORGIVENESS” MAKING IT HAPPEN!
So your business received PPP funding and you meet all the qualifications of forgiveness… What happens next? At the end of the covered period, you will need to work closely with your lender to begin the forgiveness process. Although your lender should be experienced and prepared to walk you through the process and although regulations are still in flux, this article is meant to give businesses an idea of what to expect when it comes time to apply for loan forgiveness. Have your documents r...
BREAKING NEWS: How Relaxation of PPP Guidelines Affects You and Answers to Your PPP Questions
On June 5th, The Paycheck Protection Program Flexibility Act became law after it was signed by the President – having received nearly unanimous support in both the House and Senate. This new law relaxed some of the regulations, and many businesses may be wondering how this affects PPP funding. Although the regulations are still in flux, the purpose of this article is to provide a concise snapshot of how PPP funding can be used to qualify for forgiveness. Because self-employed individuals and ...
TELECOMMUTING EMPLOYEES AND THE TICKING TAX-BOMB DEVELOP A POLICY THAT MANDATES WHERE WORK IS TO BE CONDUCTED AND MANDATE THAT GOOD RECORDS BE KEPT (PART 1 OF 2 PARTS)
Note: This article focuses only on the employee – a subsequent article will focus on tax and liability issues imposed on the employer Background. Because the pandemic has forced many more workers to telecommute compared to what we have seen in the past, there could likely be significant tax implications that you may not be considering. Generally, a state and even a locality (city/county) expects employment taxes if work is done within the state where the employment generally occurs (...
CLEVER ESTATE PLANNING FOR THE CLOSELY-HELD BUSINESS: RECAPITALIZATION AND FREEZE IN VALUE CAN SAVE SIGNIFICANT ESTATE TAXES
Even in bad market times, closely-held businesses continue to see growth. That growth is a double-edged sword. On the one hand, the partnership or stock ownership becomes more valuable – but, at the same time – the more valuable the stock at the time of the owner’s death, the greater the tax burden on the owner’s estate. To avoid this problem, consider recapitalizing—specifically, converting some of your corporation’s common stock into preferred stock. Recapitalization is the restru...
Didn’t receive your PPP funding? There is another option.
For businesses that didn’t receive funding under the Paycheck Protection Program, Congress has approved the Employee Retention Credit to help them pull through the economic impacts of COVID-19. Under the Coronavirus, Relief, and Economic Security Act (“the CARES Act”), qualifying businesses can receive this tax credit worth as much as $5,000 per employee that they continue to pay throughout the 2020 calendar year.To qualify for the program, businesses just need to demonstrate either that ...
THE DC AREA’S “TRI-STATE LENDING CONUNDRUM”: RECOMMENDATIONS ON PAPERING A GOOD LOAN THAT “TOUCHES” DC/MD/VA
A senior lending officer once remarked, “the best loans are those that are well-underwritten and better papered.” Lending in our tri-jurisdiction area of DC, Maryland and Virginia is challenging today. Lenders must not only underwrite the loan and the borrower/guarantors for today, but also look forward during the term of the loan to protect the loan for default, trouble or calamity. Beyond that, it gets even trickier in our area. The lender may be organized in one state and fund...
The Federal Opportunity Zone Program – A New Program Worth Knowing!
You may have heard about the Opportunity Zone Program -- included as a part of the Tax Cuts and Jobs Act of 2017. The Program was designed as a way to revitalize economically distressed communities by offering significant tax breaks to investors who invest in the development of these communities. Although there has been some debate over whether this program will succeed in actually revitalizing these communities, all politics aside, what does the Opportunity Zone Program m...
SIGNIFICANT CHANGES TO TENANT’S RIGHTS FOR SINGLE FAMILY HOMES!
The Tenant Opportunity to Purchase Act of 1980 (“TOPA”), as amended, gives District of Columbia residential tenants the opportunity to purchase and a right of first refusal to match a third party contract when the owner of their rental accommodation sells, demolishes, or discontinues renting the unit. On April 10, 2018, the District of Columbia City Council amended this act to add several exemptions from coverage. With a few exceptions, single family rental units, single family rental units...
Warning to DC Landlords: You may think you are exempt from rent control! ARE YOU?
In the District of Columbia, the DHCD Rental Accommodations Division (“RAD”) administers the District’s Rent Control Act. All housing accommodations must be registered with RAD, except dormitories, hospitals, units operated by foreign governments, and a few others. The Law places all of the District’s housing stock under rent control UNLESS exempted and, in order to be exempted, one must follow certain regulations and filing procedures in order to qualify for exemption. In other word...