4000 Hollywood Blvd. Suite 485 South Hollywood, FL 33021
CALL US TODAY: (954) 966-2112

News & Resources

Category: Corporate and Taxation

How Federal Estate and Gift Taxes Work

Posted May 17, 2021 in Mitchell F. Green, Robert M. Kramer, Articles, Asset Protection, Corporate and Taxation, Estate Planning and Probate, News

Many people are concerned that a significant portion of their estates will be consumed by federal estate tax. Federal estate and gift taxes are really a single tax on the value of property transferred from one person to another. The gift tax applies to transfers during life and the estate tax to transfers on death. Estate and gift tax rates are high. However, very few gifts and estates are actually taxed because of generous exemptions, exclusions, and deductions. The Estate Tax Lifetime Estate and Gift Tax Exemption Each individual is entitled to transfer a certain dollar value of property without any estate (or gift) tax liability. The Tax Cuts and Jobs Act of 2017 doubled the estate tax exemption to approximately $11 million. The exemption is indexed for inflation and is expected to rise each year. In 2025, the exemption will be cut in half to its 2017 level unless Congress enacts a new law. The amount of the exemption is reduced by any taxable gifts you have made during your life. Because of the exemption, less than .1 percent of estates will be subject to estate tax. That translates into fewer than two thousand estates per year.

Read More

PPP deadline extended to May 31

Posted March 29, 2021 in Mitchell F. Green, Robert M. Kramer, Articles, Asset Protection, Corporate and Taxation, Estate Planning and Probate, News
Thousands of small businesses scrambling to stay afloat as a result of COVID-19 are getting extra time to apply for PPP loans. By a 92-7 margin, on Friday, the Senate passed the PPP Extension Act of 2021 (“Act”), extending until May 31 the deadline for Paycheck Protection Program applications. The PPP was scheduled to sunset Wednesday, a timeline that could have prevented some 190,000 small businesses who have pending PPP applications from securing a loan. Previously, on March 16, the House passed the Act, by a 415-3 vote. This was a rare show of overwhelming bipartisan support! The Act also gives the SBA an additional 30 days beyond May 31 to process those loans. The Act now goes to President Joe Biden for his signature.

Read More

PPP Likely Extended to May 31

Posted March 19, 2021 in Mitchell F. Green, Robert M. Kramer, Asset Protection, Corporate and Taxation, Health Law, News
Small businesses got some good news on Tuesday, when the House of Representatives voted to extend the Paycheck Protection Program for two months. On Tuesday, the House passed the PPP Extension Act of 2021, by a 415-3 vote. It would extend the program to May 31, instead of the current date of March 31, and give the Small Business Administration an additional 30 days to process loans. The bill now goes to the Senate, where it is expected to be approved. It's clear that the most vulnerable small businesses will need help beyond March 31, so we must pass this extension as quickly as possible," said Sen. Cardin in a Thursday statement. "This common sense, bipartisan bill will meet the continued demand for PPP loans by giving small businesses two more months to apply and giving SBA an additional month to process the loan applications by June 30."

Read More

New PPP FAQs – Good News for Necessity Requirement

Posted March 12, 2021 in Mitchell F. Green, Robert M. Kramer, Asset Protection, Corporate and Taxation, Estate Planning and Probate, News
As addressed in previous Legal Beats, in order to qualify for a Paycheck Protection Program (“PPP”) second draw loan, the borrower must demonstrate that they had a 25% reduction in gross revenues, comparing a 2020 calendar quarter to a comparable 2019 calendar quarter (i.e., comparing the 2nd quarter of 2020 to the 2nd quarter of 2019, 3rd quarter to 3rd quarter, etc.), in order to qualify for a PPP second draw loan.  As was the case with PPP first draw loans, borrowers must certify in good faith that “current economic uncertainty makes the loan request necessary to support the ongoing operations of the borrower”.  Originally, during the early days of the PPP program, the “necessity” requirement created much uncertainty, as numerous large businesses, such as Shake Shack and Ruth Chris Steakhouse, applied for and obtained tens of millions dollars of PPP loans, resulting in the SBA reminding borrowers of their good faith certification of necessity. As a result, in a FAQ issued by the SBA last spring, it stated that loans with an original principal balance of less than $2 million will be deemed to have made the required certification concerning the necessity of the PPP loan request in good faith. 

Read More

PPP Update - New Rule Good News for Schedule C Filers

Posted March 8, 2021 in Mitchell F. Green, Robert M. Kramer, Asset Protection, Corporate and Taxation, Estate Planning and Probate, News
The US Small Business Administration (“SBA”) recognizes that many independent contractors and sole proprietors were not able to borrow sufficient funds because their net income, as opposed to their gross income, was nominal, resulting from the incurrence of ongoing operating expenses, regardless of the economic impact the COVID-19 crisis was having on their business. As a result, the SBA issued a new Paycheck Protection Program (“PPP”) Interim Final Rule (“Rule”) on March 3, 2021, which will permit independent contractors and sole proprietors who file Schedule C Business form as part of their 1040 Income Tax return to to base their PPP Loan upon their “gross income” (line 7 of Schedule C), for their first draw PPP loan, if no loan has yet been received and/or for their second draw PPP loan, if the first loan has been received and used.  The gross income reported on line 7 will still be capped at the same $100,000 as was net profit, so the maximum loan a Schedule C taxpayer may receive remains at $20,833 ($100,000 x 20.833%). 

Read More

Material presented on the Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A. website is intended for information purposes only. It is not intended as professional advice and should not be construed as such. The material presented on this site is included with the understanding and agreement that Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A.is not engaged in rendering legal or other professional services by posting said material. The services of a competent professional should be sought if legal or other specific expert assistance is required. Any unauthorized use of material contained herein is at the user’s own risk. Transmission of the information and material herein is not intended to create, and receipt does not constitute, an agreement to create an attorney-client relationship with Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A. or any member thereof. This website is not intended to be advertising and Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A. does not wish to represent anyone desiring representation based upon viewing this website in any state or jurisdiction where this website fails to comply with all laws and ethical rules. This website is not intended to constitute legal advice or the provision of legal services. By posting and/or maintaining this website and its contents, Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A. does not intend to solicit legal business from clients located in states or jurisdictions where Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A. or its individual attorneys are not licensed or authorized to practice law. Some links within this website may lead to other sites. Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A. does not necessarily sponsor, endorse or otherwise approve of the materials appearing in such sites.

© Copyright 2015 Kramer, Green, Zuckerman, Greene and Buchsbaum, P.A. All Rights Reserved. Sitemap | Law Firm Essentials by PaperStreet Web Design