Author Archives:
Alexis Nash

The changes to the meal and entertainment deduction caught many off-guard. Tax reform eliminated the opportunity for businesses to deduct entertainment-related activities and changed the deduction for certain meal expenses to 50%. Unlike other aspects of tax reform that have been modified during COVID-19, this deduction has not been changed. In fact, the IRS had only published proposed rules which were effective until the release of final regulations (TD-9925).

The combination of 1031 like-kind exchanges and cost segregation studies have long been two of the better tax tools in construction and real estate owners’ toolboxes. The combination of tax deferrals and bonus depreciation created advantageous scenarios where capital gains were deferred, investments continued to grow, and personal property could be depreciated at an accelerated rate. When the Tax Cuts and Jobs Act (TCJA) was passed in 2017, it limited the use of 1031 exchanges to real property only.

Over the past few years, there has been a renewed focus by the IRS and Department of Labor (DOL) on worker classification. Atlanta employers have the option of classifying a worker as either an employee or an independent contractor depending on a number of factors. While a background detail to those working for the company, in either capacity, there are tax ramifications for the business depending on classification.

The Paycheck Protection Program (PPP) has been an essential source of funding and capital for Atlanta businesses working through the COVID-19 pandemic. Although the program’s popularity seemed to dwindle in recent weeks, the Small Business Administration reported that over 174,000 loans totaling $14.6B have been issued to Georgia companies.

As state-mandated rolling shutdowns and business interruptions continue in the COVID-19 pandemic, there is still uncertainty approaching the months ahead. Even organizations that are still using the Paycheck Protection Program (PPP) funds are faced with cash flow planning concerns. By now, many Atlanta business owners are aware of the tax opportunities contained in the CARES Act.

The Paycheck Protection Program (PPP) has been a useful tool in helping construction contractors weather the COVID-19 pandemic. As of June 30th, over 466,000 loans have been issued to industry companies totaling more than $64B. These numbers are stunning and reflect not only the depth of economic impact but also the popularity of the program.

After months of enduring forced business closures and stay at home orders, there appears to be light at the end of the tunnel. While Georgia was one of the states that started the reopening process earlier than most it has been a slow journey to “normal”.

After several months of enduring unexpected forced business closures and stay at home orders, state and local governments are executing their plans to gradually re-open businesses and jumpstart the economy. This is a welcome relief for many who were unable to operate and those who have had to significantly adjust operations during the emergency. Regardless of their situation, this is welcome news for Atlanta businesses that have been patiently waiting to serve customers and clients. As businesses open their doors again there will be new challenges, restrictions, and rules that must be addressed.

The COVID-19 emergency has forced both businesses and individuals to make difficult decisions. For businesses, it is all about maintaining positive cash flow and reducing expenses until market conditions return to “normal”.

Like many other industries, the real estate industry has been hit hard by the COVID-19 pandemic. When businesses face economic uncertainty, their financial instability trickles down to landlords, builders, and contractors.