Tag: Biden

President Biden Tax Policy, Uber or Lyft Used Car Business & More of your Tax Question

Sanjiv Gupta CPA - 6 months ago
We're going to discuss the second PPP(Payroll Protection Program) loans. We're also going to talk about the recent President Biden taking over the presidency; what does it mean for all of us? Today, President Biden became the 46th US president. He's taking over at a time when the COVID is creating havoc and vaccine distributions are in total disarray.He has already announced a $1.3 trillion COVID stimulus plan. Whether Congress will pass it or not is a big question.Because we know that  $3.2 trillion was pumped into the economy last year, if you recall, $2.3 trillion was in the Cures Act. About $900 billion was in the recent COVID stimulus passed on December 28 by the outgoing President Trump.So this will be a big stimulus package. If it ever to be passed, the chances of getting it passed? I don't think it's going to pass so big. But maybe it may be a trillion dollars.What is the inflationary impact of that money being pumped into the economy already; we can see that impact not now. Maybe a year later.But we should also welcome President Biden. President Trump has not created a security environment where we feel secure, and COVID is making such a blunder in the economy.  People are fearful, scared to go out, confused.If President Biden throws those things out, then there will be a more systematic plan. He signed a couple of executive orders mandating wearing masks in federal buildings. He did other things like rejoining the Paris Climate accord and other things, which President Trump has taken away. So we do welcome him as a president. And we look forward to a bright four years for the US economy and taxes. What were tax proposals? We know that we fear those tax proposals, but he needs 60 votes in the Senate. And right now, they have 50 plus votes, and Vice President Kamala Harris can give one. He still needs nine more votes of Republicans. How will President Biden push his tax policy? That will be a question. Well, we'll talk about that as things come by. But right now, let's focus on what is promised us for this year. And we know Janet Yellen was going to be there soon as the treasury secretary, and she has said that she is going to promise he wants to go big on COVID relief packages. The stock market has already been riding higher on expectations about binding policies.It has gone up to 13%. There is a 30 13% gain in s&p 500. Since the election, this is the best for any president for so many years. You've never seen a rise in the stock market so much after the election of freshmen Biden.In another update today, we have the tax season. IRS has announced that the date of February 12 will be the starting date for this tax season where they will start accepting individual tax returns, and we'll begin issuing refunds. So it's a two weeks delay from last year. We know it started on January 29. Now it's February 12.Of course, we can understand the delay in this because of COVID relief bill. They changed many things relating to taxes, economic impact payments, and things relating to child tax credit and other things, changes that will come up with PayPal loan forgiveness, and other things that we will talk about right now, in the dollar segment of the show.My firm has offices in Fremont, Sunnyvale, and Pleasanton. We have a team of great experienced CPAs,  and EAs, and experienced tax and accounting professionals who understand US tax rules and Indian tax regulations. Our firm has been very instrumental in providing PPP loan support in the first round and we are doing it again in the second round for all of our clients. We have provided a lot of support in PPP loan forgiveness, which is a different ballgame for many clients. People do understand that people loan forgiveness is difficult. It's not easy because there are so many options out there. We have a caller here. Let me take this call. Good evening. This is Sanjiv Gupta, CPA.Caller Question About Used CarI wondered about purchasing a used car and then using it on one of those apps where people rent out your car. I'm wondering if I did this with this count? Could I deduct the cost of that car? Yes.  If you're doing any business,  deriving any income (let's say you are renting). If you have an income, you can deduct the expenses relating to that income. But remember, you have to understand this should be  consuming activity. It cannot be a one-time activity; you should continue renting it out. And it should be a business type of activity, not just a hobby type of activity. Just make sure you correctly do that. And if you do that, if provide proper service, have a system set up, like have a bank account in the do a DBA filing, doing businesses filing, get the city permit, open a bank account, put some money into the bank for that business. And advertise a website for that one. If you do all those things, it shows business-type activity; you can deduct the expenses related to that activity. Okay. Even though this is more like an independent contractor, I guess. Still, you can do it. This is a good activity, as long as you do a continuous and regular activity, you can do it, not a problem.
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