Translations from Your Trusted Advisor.
Both business owners and individuals who file taxes in the state of New Hampshire have some changes that may affect them for upcoming tax years, particularly 2022. As a result of some recent budget changes and legislation, all Granite State taxpayers can expect some aspect of these recent changes to affect them.
Last week legislation was finalized in the State of New Hampshire allowing for Payroll Protection Program (PPP) Loan forgiveness to conform to the federal treatment. This will allow any forgiven funds to be nontaxable.
Dana R. Bull, CPA, MST •
The Department of the Treasury recently issued detailed information regarding the Biden Administration’s budget and tax proposals for fiscal year 2022. This annual publication is known as “the Green Book.” This publication gives a clear picture of tax policies being pursued by the current administration. Many of these proposals have been previously announced in the “Made in America Plan” and “American Jobs Plan.” Keep in mind that these are only proposals and not newly passed tax law. While there are too many proposals to address in this blog, here are some of the highlights that are likely to affect a number of taxpayers:
The SBA has officially set the opening days for the Restaurant Revitalization Fund which is a $28.6 billion program that will provide grants to restaurants impacted by the pandemic.
Lena Rozzi, CPA •
NH Charitable Trusts Unit
Nonprofit organizations serve a broad range of industries and are a vital part of New Hampshire by fostering civic engagement, driving economic growth, and encouraging public interests within our communities. The mission of the NH Charitable Trusts Unit is to protect the public’s interest in the organizations and assets committed to charitable purposes in New Hampshire. As a nonprofit organization registered with the NH Charitable Trusts Unit, there are annual filing requirements that are necessary in order to remain in good standing with the NH Charitable Trusts Unit.
For 2021 and 2022 calendar year periods the 50% meals deduction has been increased to 100% when relating to food or beverages purchased through a “restaurant”. Previously the definition of a restaurant was unclear so the IRS has issued guidance.
The American Rescue Plan Act of 2021 was signed into law on March 11, 2021 and included changes to the law that impact 2020 taxes. As some tax returns have already been filed, there are many questions about how resolve or when to file affected tax returns.
If your business received Main Street Funds in 2020 and performed better than anticipated, there is a looming question of whether your business will need to repay any of those funds. Taylor Caswell, Executive Director of the Governor's Office for Emergency Relief Recover, recently spoke with WMUR and provided some important clarification.
Alyssa Hodges, CPA •
After your business taxes are done and any adjusting journal entries have been provided by your accountant, a best-practice is to officially close the books. QuickBooks makes this easy by having a closing date feature which can either warn you or require a password before prior-year data is changed.
To enable a closing date:
Earlier this month a bill was filed with the NH Senate that would allow for PPP loan forgiveness to mirror the federal tax treatment. This ultimately means that loan forgiveness would not be taxable for BPT or BET purposes and the expenses would continue to be deductible.
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