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Business Owners Archives | Wealthspire

tax savings qsbs

The Powerful Tax Savings of “Qualified Small Business Stock”

By Blog
IRC Section 1202 provides one of the most powerful tax benefits in the U.S. Internal Revenue Code (IRC) to entrepreneurs and investors. However, it is also one of the least recognized IRC Sections, even amongst those who stand to most benefit from its use. Section 1202 provides an exclusion from taxation to a qualified investor of up to $10 million of capital gain or 10 times the stockholder’s adjusted cost basis, whichever is greater, upon the sale of Qualified Small Business Stock (QSBS). Why has such a generous provision in the tax code gone comparatively unnoticed? A look back at…
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Paycheck Protection Program (PPP) and Employee Retention Credit (ERC) Updates

By and Blog
There has been an almost constant buzz over the past few weeks concerning various stimulus packages and potential tax code changes. A disciplined planning process certainly incorporates what is known, while also exploring what might be.   With the combination of President Biden’s inauguration and Democratic control of both houses of Congress, along with nearly $9 trillion of stimulus spending, most anticipate tax increases for both individuals and corporations. In this blog written prior to the election, our team provides a recap of some of the initial Biden proposals. As the elections (including Georgia runoffs) are now complete, expectations are becoming somewhat…
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PPP loans Flexibility Act

Paycheck Protection Program (PPP) Loans: Round 2 Updates

By Blog
The Small Business Administration (SBA) recently released more information regarding the second round of Paycheck Protection Program (PPP) loans as the application process opened Monday, January 11 under the $284 billion program authorized by the $900 billion stimulus relief bill signed on December 27, 2020. The loans are available to both first time and second time borrowers. In an effort to give priority to underserved businesses including veteran, minority, and women owned businesses, only loans from community financial institutions will be accepted initially (starting January 11 for first time borrowers and January 13 for second time borrowers). It has not…
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QBI

Qualified Business Income (QBI)

By and Blog
Deduction May Create New Planning Strategies for Some Business Owners The Tax Cuts and Jobs Act of 2017 introduced a new 20% tax deduction focused on pass-through businesses. As tax accountants pore through the Internal Revenue Service’s recently released 184-plus pages of guidance on the so-called Section 199a deduction for “qualified business income” (QBI), many business owners are wondering whether they will qualify. While everyone’s circumstances are different, and we encourage consultation with a tax advisor, the Act created an opening for several planning opportunities to potentially reduce tax bills for owners of such businesses. First, a little background. Qualified…
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sell business

Preparing to Sell Your Business: How to Optimize the Sale and Transition

By Guides & Whitepapers
We’ve worked with entrepreneurs over the years who have poured their hearts and souls into their businesses. And when the time is right, many consider selling their company. Planning ahead can allow an entrepreneur to take steps to increase the value of their business. It can also help them to sell at the right time – when the price they can get for their business is optimal or before health issues or other problems might force them to sell. While many business owners understand that a transition plan is important, 43% have no plan in place and 80% do not…
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PPP loans Flexibility Act

Paycheck Protection Program Flexibility Act

By Blog
New Legislation Could Help Business Owners with PPP Loan Forgiveness Process After being approved by the senate early last week, House Bill 7010 was signed into law by the President on June 5th, 2020. This bill triples the amount of time allotted for small businesses to spend PPP loan proceeds and affords additional flexibility. The two primary provisions are: Borrowers now have 24 weeks to spend funds received under the PPP loan program – up from the original 8 weeks. The requirement to spend at least 75% on payroll and payroll related costs has been lowered to 60%. The bill…
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ppp loan

PPP Loan Forgiveness: Creative Planning Strategies to Consider

By Blog
On May 15th the SBA released the PPP Loan Forgiveness Application for the Paycheck Protection Program loans, including detailed instructions for borrowers on how to complete the application. Additional interim final rules were issued on May 22nd. Given that the program started on April 3rd, this week marks the eighth week and first opportunity for companies to submit their request for forgiveness. The application is made to your lender, who then has 60 days to determine eligibility for forgiveness. Amounts not forgiven are to be paid back at 1% interest over two years. Payments are deferred for six months. Unfortunately,…
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CARES Act

Details of Newly Passed CARES Act: Welcome Relief Plus Planning Opportunities

By Blog
The Coronavirus Aid, Relief, and Economic Security Act (CARES) was signed into law on March 27, 2020 and provides $2.2 trillion in stimulus to help the economy recover from the dramatic changes brought on by the COVID-19 pandemic. The Act is designed to offer individuals and businesses significant flexibility to recover from the anticipated recession as parts of the economy are forced to slow or shut down. Details of the Act’s provisions concerning individuals and small businesses are included in the sidebar. To put this into context, this $2.2 trillion is sizable relative to the $20 trillion United States GDP…
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Executive Risk

Executive Risk Management: Tips for Playing Defense

By Blog
Most executives rightly focus on their offensive strategy—saving and investing—but a defensive strategy is essential, too. As high earners, executives are often in a position to self-insure for some potential needs, but in almost all situations there remain gaps to fill with wisely chosen insurance strategies. Essentially “delegating” your defensive strategy to your HR department—in the form of workplace-provided policies—is unlikely to be wise. Ideally, a risk-aware strategy will include some base components available through the workplace, such as group disability and life insurance policies, augmented by tailored products purchased personally. Across both workplace and personal products, there are subtleties…
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