Hey what's going on everybody? today is Thursday June 25th. I'm going to be talking
a little bit about the PPP, EIDL and some tax free payments that you can make to
yourself or your employees. But first if you haven't done so already, please
subscribe to my channel I would really appreciate that,
stay updated with everything going on with the pandemic. And also smash that
like button because I know it only takes a second, maybe takes less than a second,
but that would help out a lot as well. Also if you wouldn't mind comment below on
what your favorite movie or movie that you really enjoy at the moment, okay? I've
been doing this lately because I just want to bring the humanity back into all
the stuff that's been going on. So favorite movie, we'd really appreciate it.
My favorite movie, well I don't know if I really have a favorite movie, but I
really did enjoy The Matrix when I was younger. I watched that movie probably
like 20-30 times, it's crazy. Matrix and obviously the Star
Wars series. So, let me know what you guys think down below. Okay now to start off
with the PPP. What I initially thought was that in order to apply for forgiveness
you had to wait until your covered period was over. And you know if you
elected the 24 week covered period, that's six months, that's a long time. And
for some folks that doesn't really make sense you know, especially self-employed
people now that you get full forgiveness. So the the Department of Treasury
released an interim ruling a couple days ago saying that you can apply for
forgiveness at any point before your covered period is over. And you have
until 10 months after the last day of your covered period to apply for
forgiveness. So you have like, a long time to do it, okay?
I think that's good because I think that can get get it out of people's minds. Get
it off their shoulders sooner than later. And in doing so, they can have the
forgiveness. Have it taken care of. Or if there's any issues, they can take
care of it or have more time to take care of it. For self-employed folks, I
definitely recommend taking care of this sooner than later. I would say as soon as
your bank opens the forgiveness application and their process in doing
it, I would jump on that right away, okay? I know that SBA has their own
forgiveness application and I think the banks will all use that application but,
just like applying for the loan I think they're all going to have like, their own
electronic version of it. Just to make it more streamlined and make it easier to
do. So if you're self-employed and you don't have any employees, I would
definitely recommend taking advantage of that as soon as possible. If
you do have employees, then you know it gets a little more tricky because if you
had to furlough employees or you had to lay some employees off, and you have
possibly a reduction in FTE, and maybe even the reduction in wages, it
might be more beneficial to you to wait until your covered period is over to
give you the best chance of forgiveness. So, if you're waiting until the 24 weeks
is up or until the 8 weeks is up, just to make sure that you have all your
employees back on staff. And make sure if you have any reduced wages during the
time you can get them back up to their normal levels before your
covered period is up and before you apply for forgiveness. Because as you
know, a reduction in either of those things will affect your forgiveness
amount. The other thing I want to talk about the PPP is that it is expiring in
FIVE days. So, if you have not applied for it you need to jump on that right away. I
mentioned in my previous videos that you've got to use Bluevine or Kabbage if you
want something quick. Don't go to a bigger bank like Chase or Wells Fargo
because they're not going to help you out, okay? They're not going to get it done
in five days. So check out Bluevine.com or Kabbage.com K A B B A G E .com. get your
loan there. They you know, both of those places in recent weeks have been
approving loans within hours if done correctly. So check it out.
Get your PPP before time runs out. As I mentioned in my previous video,
there might be another round of PPP. PPP version 2 or they call it
the PPPP or P4. It's another round of PPP for businesses after they've exhausted
their first and initial round of PPP. So that's in talks too. Stay tuned for that,
I'll keep you updated. Next thing I want to talk about is just some updated EIDL
loan figures. As of June 21st, the SBA has approved over 1.7 million loans and
that's totaling about $113 billion. So, they are not really even
close to exhausting their budgeted amounts for that program, which is good. And in
terms of the the EIDL grant, they've let's see, they've issued about 3.7
million grants totaling about $12.3 billion. They still have
not come close to exhausting the grant amount there. So that's good. You know,
Jovita Carranza said that by end of last week they should have at least had
all the portal emails out to applicants that have applied. You know, before the
Agriculture portal nonsense, okay? So I'm, that I don't know. I hope she's
true to her word. Let me know if you applied before agriculture portal
restriction and if you've gotten your your portal email yet or you have not
gotten your portal email yet. Let me know. I'd like, I just like to know what's
going on. Okay, Senator Mnuchin has stated that he's open to extending the
tax deadline even more. You know it's not in their plans right now but,
he's saying you know, as July 15th approaches he's really open to
considering whether or not they should extend the tax deadline even more.
Because he's worried that the pandemic has caused a lot of issues in getting
people to get their stuff together to file taxes. So I think this would be
good for people who really need it. You know, especially if they're going to owe
taxes. And you know, it's going to help them with not having that tax, that late
payment penalty and late filing penalty. However, selfishly as a CPA, this is
really hard for us. You know, tax season is usually like a really,
it's like a Sprint. You know, a 3-month Sprint and and then it's done for
the most part, okay? But this sprint has been kind of extended to a longer run.
It's been like a 6-month sprint now and it's just been hard. It's been hard
on CPAs. Even though you know, there's pros and cons there. But it's just
been a little challenging but I know that people are going to need it. So I
think it's good for them. Alright, the last thing I want to talk about today
are these tax free payments that you might have heard of or you might
not have heard of. They're called Disaster Relief Payments under the
Section 139 of the Internal Revenue Code. So basically what these payments are is
that during a disaster, a declared disaster, companies can pay their
employees for reimbursements of like medical expenses or childcare or any
expenses that were incurred in order for the employee to have to work from home
or you know set up a home office, that kind of thing. Those payments can be made
to the employees and those employees will not have to count them as income.
The second side of that is that the employer or the company that makes the
payment can write it off as a deduction. So that basically means that those
payments go into like a tax black hole. There's a double benefit there you know,
it's tax deductible to the company and not taxed as income to the employee.
So this could be a huge thing for you guys to know. You know, if you had to
incur medical expenses because of the pandemic or because of the
virus. Or if you had to incur like additional child care costs, that qualifies. Or if you
had to basically set up a home office since you're working from home now. And
since the current pandemic is a declared disaster officially, this Section 139
does apply to this scenario. So basically, what you want to do is, if you want to
take advantage of this, make sure you keep good documentation. Like keep all
your receipts from your medical bills. Or you know if you have a caretaker and
nanny just make sure they invoice you so you have that record and the record of
paying them. And any equipment or supplies and all that crap that you had to
buy for your home office, keep those receipts too. And basically if
you are the employee of your own company then you can write yourself a check as
like a reimbursement for those expenses. And then you as the employee can just
cash that check and not worry about counting it as income. If you are working
for a bigger company, inquire about this program. See if they will offer anything
for their employees for assistance you know, during during these times. Because
you never know, they might. And sometimes companies don't act unless you
ask them. So this is something that could be really helpful for you or for your
fellow colleagues. Maybe just band together and ask and request some kind
of program like this. And do point out that it would be beneficial for them
as a tax deduction. I got a some comments from the
community here in my last video. We had somebody say "You did not watch
the video where President Trump said the stimulus check will be very generous. He
was speaking with a reporter you are very wrong about the $1,200. Your
information is not current." Okay, so some things do impact there. When President
Trump speaks to a reporter and he says "very generous" that doesn't mean anything
about a stimulus check amount. And I believe he was talking about the
stimulus package as a whole. But saying that is very generous doesn't mean much.
I still stand behind my opinion that a $1200 one-time check per person is going
to be the most likely scenario here in terms of a second stimulus check. Sorry
that upsets you, but that's just, that's my opinion. Maybe I'm wrong, but we'll see,
okay? Because I know President Trump says "very" and then followed by an adjective
a lot. And some times you know, they're meaningless. So
we'll see what goes on. But that's just my opinion now. I've got another question
here. "Can I still pay myself from the SBA loan if I'm getting unemployment as well?
And if yes, how can I pay myself from the same checking account,
I've only got one checking account?" So if you're self-employed and you received
the PPP loan or the EIDL loan, my belief is that it will not really affect PUA
unemployment. Just from the nature of how self-employed income works, I don't
really think it's gonna affect PUA and that's just that's my answer to that
question there. "My favorite activity around this time is watching all the
YouTube videos about stimulus checks." Man, there's a lot of videos
about stimulus checks. So good on you for doing that.
Last question I'll address. "What if someone sold things online in their
previous year but didn't gain a profit, and they are not issued a 1099,
can they use that to apply for the EIDL loan? And what would need to be mentioned
to them?" So if you sold things online that you didn't generate a net profit,
you might still qualify. Because what the SBA looks for is gross profit.
And that's just revenue minus cost of goods sold. And if you have gross profit,
than you probably would qualify for the EIDL loan. However, if your
revenue minus cost of goods sold is zero or close to zero, then you probably won't
qualify unfortunately. And yeah, you can do this without having a 1099 or
anything. All right, that's all I've got for today. Thanks so
much for watching. Again, if you're new here, please subscribe to my channel I'd
really appreciate it. And also, smash that like button. I'll see you guys tomorrow
and take care.