02 November

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You Were Named the Executor or Administrator of an Estate – What To Expect

When someone is designated as a personal representative for an estate, their mind is often inundated with questions and concerns about what they are legally obligated to do. In many instances, personal representatives are named an Executor/Executrix or an Administrator/Administratrix. Similarities and Differences between an Administrator and an Executor You may be wondering, "What is different from being named an Administrator versus an Executor?" Well, an Administrator is the individual appointed by a court to oversee an estate when someone passes away without a Last Will and Testament. In contrast, an Executor is the individual named by a decedent in their estate plan to oversee the administration of their estate, including the distribution of assets and management of any outstanding liabilities. Despite these differences, there are a number of similarities between Executors and Administrators. For example, both Executors and Administrators are subject to the jurisdiction of a probate court. Both Executors and Administrators...

19 October

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Streamlined Loan Forgiveness Application Now Available for PPP Borrowers

Posted by Bobby Feisee

in Bobby's Blog, News

If you received a loan totaling $50,000 or less through the Paycheck Protection Program, the administrative burden associated with applying for forgiveness is now much lighter. The Small Business Administration recently issued Form 3508S, which is a far simpler loan forgiveness application, especially in comparison to the original 3508 form and even the 3508EZ form. For example, Form 3508S is a single page and requires very little paperwork when applying for PPP loan forgiveness. Small business owners who borrowed $50,000 or less will need to certify the following: Loan funds were used for eligible expenses; Payroll costs were at least 60 percent of the forgiveness amount; and You meet the owner-employee's limitations and caps. In addition, PPP loan borrowers also need to provide some form of documentation supporting the eligible payroll and nonpayroll payments from the covered period, including: Payment receipts, cancelled checks, or account statements documenting the amount of employer contributions to...

30 September

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Presidential Debate Highlights Differences in Tax Policy

Posted by Bobby Feisee

in Bobby's Blog, News

The first debate of the 2020 presidential election took place recently and it was…unique. It's fair to say this was a norm-shattering debate that ran high on emotions and low on substantive discussions pertaining to federal policy. It was not particularly entertaining, but it was revealing in certain moments. The issue of taxes is one prominent example that highlights the stark differences between the candidates. Let's take a look at each candidate's proposals when it comes to tax policy. Joe Biden's Tax Proposals The Biden campaign released a number of policy papers, including Vice President Biden's plan regarding taxes. If elected, Joe Biden would seek to repeal many of the tax changes that were codified in the Tax Cuts and Jobs Act. In addition, a Biden administration would seek to tax capital gains at ordinary income tax rates for individuals earning in excess of $1 million. A Biden administration would also seek to...

15 September

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Info You Need to Know – Estate Taxes Levied at Both the State and Federal Level

Posted by Bobby Feisee

in Bobby's Blog, News

I recently published a blog discussing the potential modifications to the federal estate tax and the push to have the federal estate tax exemption revert to "historic norms." It appears some states may be targeting their own estate tax exemptions in an effort to raise additional revenue. For example, the D.C. Council approved the Budget Support Act of 2020 containing a number of significant tax changes, including a change to the D.C. estate tax exemption. Specifically, when someone passes away in D.C. on or after December 31, 2020, their estate would be exempt from the D.C. estate tax up to $4 million. This is a notable reduction from the current exemption for D.C. residents of $5.6 million. Though, the D.C. Council also included annual cost-of-living increases for the exemption amount. State-Level Estate Taxes When it comes to estate taxes, much of the spotlight winds up going to the federal estate tax to the point where many...

10 September

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Estate Tax Exemption May Be Modified Post-Election

Posted by Bobby Feisee

in Bobby's Blog, News

Former Vice President Joe Biden released a 110-page economic plan that included significant modifications to the estate tax exemption, in addition to other tax policies that could impact your estate. Modifying the Estate Tax Exemption Biden’s economic plan would seek to return the estate tax exemption to "historical norms." This is a nuanced way of saying that the estate tax exemption should be reduced back to close to $5 million, rather than where the exemption is currently set at closer to $12 million. The tax reform legislation that was passed recently included a doubling of the estate tax exemption. Specifically, the estate tax exemption was $5.49 million in 2017 and is now $11.58 million in 2020. In addition to reverting the estate tax to historical norms, Biden's economic plan includes revenue enhancements through modifications to the individual income tax rate on households with taxable income in excess of $400,000, according to CNBC.com. Modifying Step-Up in Basis Former...

28 August

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Advice on How to Plan Your Estate in the Midst of the Coronavirus Pandemic

Posted by Bobby Feisee

in Bobby's Blog, News

The Coronavirus Pandemic has placed the fragility of life front and center for many people. It is a harsh reminder that each day is a gift and an unexpected event can limit the days we have on this Earth. A byproduct of this realization is that many Americans are taking steps to plan their estates. However, jumping headfirst into estate planning can be rather intimidating. You have to make important decisions about whether to create a will, a trust (or trusts), power of attorney for handling financial matters, power of attorney for medical decisions, and so forth. If you are interested in planning your estate, here is some advice on specific steps to take. Decide Whether It Makes Sense to Work with an Estate Planning Professional If you are a newcomer to estate planning or have very few assets, it may make sense to utilize an online platform to create a basic estate...

27 July

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Converting Small PPP Loans To Grants – A Worthwhile Policy Proposal

Posted by Bobby Feisee

in Bobby's Blog, News

Congress is eyeing further legislative modifications to the Paycheck Protection Program, one of the pillar programs of the $2.2 trillion CARES Act enacted in response to the Coronavirus pandemic. One of the policy proposals making its way through the chambers of Congress include automatically forgiving PPP loans that are less than $150,000. The idea of automatic forgiveness for relatively small PPP loans can be attributed to the Consumer Bankers Association and the Bank Policy Institute, two prominent lobbying groups that represent large financial institutions. Current Loan Forgiveness Requirements are Administrative Hassle It is possible for a small business owner to have some, or all, of their PPP loan to be forgiven. Though, there is specific criterion that must be met which entails a fairly significant investment in administrative management (some would described it as a burden) for both small business owners and banks. To make matters worse, the rules governing PPP loan forgiveness...

10 July

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Overview of Payroll Tax Relief Enacted to Help Businesses Struggling in the Midst of the Coronavirus Pandemic

Posted by Bobby Feisee

in Bobby's Blog, News

Congress recently passed legislation aimed at encouraging business owners to continue paying the wages and benefits of employees by providing payroll-related tax credits, loans, and other forms of necessary relief. If you own a business, the InSight Law team wants to ensure you are fully aware of the various programs and tax incentives available to help you during this difficult and unprecedented time. Payroll Tax Relief for Businesses with Less than 500 Employees There are now tax credits available to help business owners cover the expense of paid sick leave and paid family leave. There is also tax-free forgiveness for Paycheck Protection Program loans and other government-backed loans aimed at helping business owners cover payroll and operating expenses during the Coronavirus pandemic; There is also a new payroll tax credit for qualifying wages paid during a time when the employer’s business was suspended or experienced a significant decline in revenue as a result...

05 July

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PPP Loan Program Deadline Extended to August 8th

Posted by Bobby Feisee

in Bobby's Blog, News

The President signed a bill into law extending the deadline to apply for a loan through the Paycheck Protection Program (PPP) to August 8th. The original deadline to apply for a PPP loan was June 30th. However, it was discovered that roughly $130 billion still remained in the loan program (Congress originally allocated $660 billion to the program). Both chambers of Congress approved the PPP loan program extension unanimously and the President signed it into law. The sponsors of the PPP declared they want to re-purpose the program to better serve the challenges businesses are facing now, according to NPR.org. "As the scope of the financial damage done to small businesses by the pandemic and resulting lockdowns has grown, it has become clear that longer-term support is necessary," said Florida Sen. Marco Rubio. Background of the PPP Program The PPP was a key component of the $2.2 trillion CARES Act. Congress originally allocated $350...

20 June

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Advice to Help You on Your Path to PPP Loan Forgiveness

Posted by Bobby Feisee

in Bobby's Blog, News

With the passage of the Paycheck Protection Program Flexibility Act of 2020 ("PPPFA"), small business owners will enjoy greater flexibility and a relatively easier path to toward forgiveness of their PPP loan. For example, one of the key provisions within the PPPFA is that a small business owner remains eligible for loan forgiveness even if they do not rehire all of their employees that were furloughed or laid off in the midst of the Coronavirus pandemic. The Treasury Department and Small Business Administration (the agency tasked with managing the Paycheck Protection Program), released new loan forgiveness forms that dramatically reduced the documentation needed to apply for PPP loan forgiveness and will give many small business owners more options and opportunities to achieve full loan forgiveness, according to a great article published by the New York Times. For example, the new forms include a “safe harbor” option that enables small business owners...