From the latest issue of “It’s Still up in the Air”:

Friday saw more guidance on PPP loans released, one week after the application for loan forgiveness finally came into the light, but even this new guidance came during a time when a couple of bills in Congress spoke to some issues with the PPP that were of even more interest to people.  The Senate was considering a bill that would extend the loan forgiveness period to 16 weeks (double its current mark), while the House has potential legislation that could extend it as long as 24 weeks, as well as eliminate the rule that at least 75% of the funds had to be used on payroll for full loan forgiveness.

I don’t want to be so bold as to cast some predictions about where this is going – we’re talking about how much is still up in the air, after all – but one should take solace in the fact that there is no talk out there about making things more stringent. So, plan by the rules that are currently in place to maximize that forgiveness. That way, if any of these further bills are passed, you will only be in a spot where it then becomes easier to move to full loan forgiveness. This is similar to how I talk about tax planning – we have to plan the best we can within the rules we have. Doing that always puts you in the best position to move when the rules change, because you are already being active and engaged.

And if you want a little more on the rules that were actually released, this article gets a little more in the weeds on it. And don’t be afraid to reach out if you want to discuss how your individual situations looks under them.

Now in this time where little seems certain and good news can feel rare, I will close this week by providing some. While questions surrounding big measures like the PPP and economic stimulus payments dominated headlines and thoughts, some smaller things slipped through the cracks. One of these was the fact that CARES Act included a provision that will allow anyone, even tax filers who do not itemize deductions, to take a 2020 deduction of as much as $300 for charitable contributions.

If you have been doing some contributing without realizing this, congratulations, you’re getting a slight bonus for being a good person. And if you have not been contributing and did not realize this, go get yourself a bonus for being a good person.  You know, beyond the fact that you just will feel good by doing it.

Warmly,

Josh Bousquet
Connect to Us ~ Facebook ~ Twitter

Another week, another time of not always knowing exactly where things lie.

First, although this isn’t really related to finances in any way, it does highlight how much uncertainty there is and how universal answers are difficult. There is a page on CNN.com that tracks Covid-19 cases in the United States. You can see cases decreasing in some areas, rising in others, and staying similar in still others. It is easy then to see how comfort levels will vary in different areas as most start to open up at least a little bit.

Then, there was the release Friday by the Small Business Administration of an application form for Paycheck Protection Program loan forgiveness. I don’t want to get too deep into that here, but here is an article from Forbes that gives the basics. But the form’s release was almost immediately followed by a plea from the American Institute of Certified Public Accountants that urged the government to release more detailed guidance because it has not addressed all necessary issues. So again, stay tuned as we probably do not yet have final answers.

Also, there are people who paid for some education expenses out of a 529 plan, then received a refund of it after their spring semester was either canceled or altered to an online experience. Thankfully that money may not be taxed, but it must be recontributed back into a qualified program. This usually must done within 60 days of receiving the refund, but the IRS has extended that window to July 15 if the recontribution deadline would normally fall between April 1 and July 15. So take that final recontributing step in time to avoid being taxed on a potentially sizable chunk of money or a nice refund is going to then come with a nice future bill.

And finally, the last week has seen some serious moves being made toward another round of stimulus spending by the government. This started with a proposal from Democrats that really stood no chance of being a success, and it was not really intended to be one. It has the dialogue going, though, and has at least started to show the path the next round of government help will take (which very well may include more individual stimulus payouts).

I think that all these things point in one overall direction, though, and that is that it is time for everyone to get on top of things again. Even if you are in a situation where you have not been able to return to work, more and more people are. This can sound like a great thing, but it can also be difficult at times, for just imagine those who could return to work but have kids who aren’t returning to school. So it is time to figure out a plan, figure out what you can do that is best for you in your situation.

And for businesses, start taking real stock of where things stand for you. If you have one of those PPP loans, have a plan to get as much of it forgiven as possible. And even if you don’t, get a grip on what income and money you have, what that will allow you to do, and what you can do to restart growth.

And as always, don’t hesitate to reach out if you need some help getting a handle on any of these things.

Warmly,

Josh Bousquet
Connect to Us ~ Facebook ~ Twitter

Are we tired of this yet?

Of course we are, but don’t let it drive you to any rash decisions.

I’m not going to get into a (potentially political) discussion here of whether it is more important to engage in social distancing and other safety measures or to open things up with an eye toward the economic benefits. Those answers will vary in different areas and even across occupations and situations. There are not going to be any universal ‘right’ answers.

So with that being said, with whatever decisions you are making, try to be sure you are doing so from a reasoned and calm space. We will not be well served by jumping into a return to normal because we are antsy and want to get out, but we are also not well served if overgrown fear dictates our decisions too far into the future.

Let’s trust those who know more than us. This is not to say that there is any one source by which we should all run our lives, but look at places you are sure are giving good information, and weigh what it means for you in your individual situation.

This type of strategy can feel difficult, though, because it makes concrete answers difficult to come by. For instance, the federal tax deadline has already been pushed back to July 15 and now there is talk that it could be pushed back another three months (or more?).

Then there is the case of unemployment. There is the obvious huge and disheartening number that about 20.5 million people joined the numbers of the unemployed in April. At the same time, though, around 18 million of them are only expected to be temporary. So there is a light at the end of that tunnel.

These are just two recent cases of how things are constantly changing. It is yet another thing that makes this time difficult and decision-making feel impossible as the rules keep adjusting. Just keep living within the rules of the moment and make the incremental moves within them. Do what is legal, within your comfort zone, and does not endanger others. Those lights at the ends of those tunnels may feel distant, but we keep moving toward them with those small steps - even if some of the steps meant hunkering down and not moving for a bit.

And breathe deep. We are tired, but we will wake. 

Warmly,

Josh Bousquet
Connect to Us ~ Facebook ~ Twitter

If someone had asked us three months ago what we would do with six weeks (and ever counting) time off, we would probably have had grand answers as to what we would get done with that time. Now that that time off has happened for many, though, what was actually accomplished is probably much less.

First, forgive yourself for this. This was not simply time off and was wrapped up with stress and worries coming at us from so many different directions that it would have been impossible to be productive and remain on task for the duration. But second, don’t give up on using this time if you still have some left.

We work with a lot of small businesses and I am sure that many of them would have answered that hypothetical question at least partially with ways to improve their business. Now, however, we see many of them that cannot do this because their business cannot operate. That situation gains someone the ultimate forgiveness.

Even when you can’t do all that you want, though, that doesn’t mean that you can’t be preparing for the future. And one of the best ways to prepare yourself is through education. This is why I suggest business owners check out some of what Dell is gathering into one place as part of their Small Business Podference this month (https://delltechnologiespodference.com/).

I don’t know if this is something Dell had planned for a while or if it was an idea that arose out of the current crisis, but either way it feels extra timely. It is a collection of podcasts from a wide variety of presenters all aiming to share stories and advice about succeeding in business. Chances are you will find a name you know involved, so give them a listen. Chances are even better that you’re going to find a name you never heard of before, so give them a listen, too.

After all, some of the best lessons come from places you don’t expect. If you only listen to the people you already follow, you’ll only ever be a follower. This is a chance to find some new views spoken by new voices. And really it’s only an hour of your life and we have enough of those currently, no? Or even better, if you don’t like it, turn it off before it is over. This will be much less awkward than walking out of a presentation at a conference.

There are benefits to this situation after all.

Warmly,

Josh Bousquet
Connect to Us ~ Facebook ~ Twitter

Wait a minute, you say it’s almost May? When did that happen?

In some ways, many have expressed how every day feels the same. At the same time, though, that monochromatic blur is passing quicker than we realize. After all, and leaving the politics and decision-making of it aside, we are seeing some states start to reopen this week, so we actually may be slowly moving into some of the next stages of these unprecedented times.

In some ways, that just feels good. No matter what our lives were like before, I think everyone is missing something. It is different things for different people, but we all yearn for something that is not currently available or at least is not the same as it used to be. In other ways, this feels scary, and I think it is impossible for it not to. This comes out of wanting to do things the right way and make sure that we continue to take our forward steps without going so far that we then have to run backward again.

As we start to look toward those times, though, it can be good to take stock of how you have spent these last few weeks. Hopefully, you can look on it and see some positives, feeling good about things you have accomplished. Even if these things are not grand (and that is understandable, as many of us needed to just feel like we had steady ground beneath us), they are still worthy of being appreciated.

If you do not feel enough has happened, though, it may be time to start doing a little more. Just as it felt overwhelming to jump into lockdown mode, there Is also the chance of being overwhelmed by getting out of it. I mean, there are many families that are going to be stuck navigating returning to work with kids who cannot return to school, certainly not an easy proposition. It is a good idea to get as much in order as you can before those times come.

This means I must give a reminder that although everyone gained an extra three months to file their taxes, it is almost May. July 15th may come quicker than it felt like it could have four to six weeks ago. So even if you have not been able to have an in-person meeting with us, still contact us, we can find a way to get a move on this. Make it be one of those things you can knock off the eventual to-do list so that that list shrinks and does not feel like an obstacle as we keep moving forward.

Warmly,

Josh Bousquet
Connect to Us ~ Facebook ~ Twitter