The purpose of this article is to discuss the definition of leasehold improvements, qualified improvements and the depreciation method for tax purposes. Leasehold improvements are major improvements or enhancements done by a tenant to make the leased property fit for his use. The examples of improvements can be: Installing furniture and fixture; Carpeting or tiling [...]
Credit cards are a convenient tool for businesses to use in everyday operations; they allow a business to build or expand their credit history, as well as track spending. However, it’s easy to lose sight of how much (and what) is actually purchased on those credit cards if the data is not correctly or timely [...]
Although forgiveness for Paycheck Protection Program (PPP) loans is a foremost topic on the minds of borrowers, there are several reasons why borrowers should not rush to apply for forgiveness. Long-expected FAQs expected to clarify many PPP-related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. In addition, the loan forgiveness [...]
The state of Texas levies sales tax on sale of tangible personal property and enumerated taxable services. Taxable services are defined in section 151.0101. Tangible personal property is defined on code section 151.009 as “the personal property that can be seen, weighed, measured, felt or touched or that is perceptible to the senses in any [...]
Many small businesses have inquired about whether they can apply for PPP loan forgiveness before their covered period expires, new Paycheck Protection Program (PPP) guidance released on June 26, 2020 declares that PPP recipients can apply for loan forgiveness early but that doing so could cost them money.The new interim final rule says that if [...]
As we touched on in a previous blog post, “What is Business Interruption? And What is Business Interruption Insurance?,” in order for business interruption insurance to kick-in, a loss claim must tick three boxes: there must be an actual loss of income a necessary suspension of operations to some degree must have occurred the cause [...]
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides for a recovery rebate credit of $1,200 for individuals or $2,400 for couples and $500 per child against the tax imposed in the first tax year beginning in 2020. The credit is phased out at a rate of 5% of a taxpayer's adjusted gross income [...]
The following three tests are used to determine solvency: Balance Sheet Test – The balance sheet test determines if, the total fair value of the debtor assets which includes both tangible assets and intangible assets, is greater than the total amount of the debtor liabilities at the time of the transaction. It can be performed [...]
Bust-out Bust-out occurs when a company obtains goods from creditors and sells those goods for cash with the intention of never repaying them. Goods are ordered by a bogus company, usually with a name that resembles a well established, well known and reliable business but the company has no intention of paying for the goods. [...]
Bankruptcy fraud ranges from the simple failure to list assets on bankruptcy schedules to the complex schemes such as bust outs, bleed outs and rent/equity skimming. Most bankruptcy fraud involves an effort to conceal assets from creditors. In the simplest form of this type of fraud, the debtor does not list all assets on the [...]
