Insights

With the inauguration of Joseph R. Biden as the President of the United States yesterday, we expect to see a different focus, new guidance and new laws. Some of the major changes that may be delivered in the Biden administration include:

The IRS and Treasury Department released final regulations on January 7, 2021, that govern the tax treatment of partnership and LLC interests related to services, so-called carried interests, a/k/a applicable partnership interests (APIs), under Section 1061.

The stimulus package passed last month may help certain Electing Real Property Businesses by including a provision that allows a shorter depreciation period for residential rental property acquired prior to January 1, 2018.

An often-used tax deduction for business meals was expanded by the most recent COVID-19 stimulus, passed in December and now effective in 2021.

Last week, Congress passed a $900 billion Appropriations Act. In addition to providing much-needed funding for vaccine distribution, direct payments tothe vast majority of Americans, and a renewal of the popular Paycheck Protection Program, the act contains a number of changes that affect businesses and their employees.

The employee retention tax credit aimed at helping businesses hit hard by the coronavirus pandemic will be extended and expanded under the new stimulus bill recently passed by Congress and awaiting President Trump’s signature.