For most privately held businesses, owners’ compensation is one of the largest expenses on the income statement, especially when all the related perks and hidden costs are calculated. Compensation should accurately reflect what others would receive for similar duties in a similar setting. Reasonable compensation levels are important not only for state and federal tax purposes,…
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Act Fast: PPP Changes Provide Greater Access for Smallest Businesses
The Biden Administration announced changes to the Paycheck Protection Program (PPP) to increase lending to smaller businesses and help ensure equitable distribution of loans to them. But qualified businesses may want to act fast because there is a two-week period when PPP loan applications will exclusively be accepted from businesses with fewer than 20 employees. PPP…
Getting Comfortable with QPRTs
QPRT is a funny-looking acronym for an unusual, but often useful, estate planning strategy. The letters stand for qualified personal residence trust — and, as the name implies, trust owners transfer their homes to QPRTs to help avoid possible estate taxes and to benefit their heirs. Let’s take a closer look. Key Selling Points Probably the…