Tax Update Blog

Tax News & Views- $2k Stimulus?

December 30, 2020 | Blog

McConnell Blocks Vote on Bigger Stimulus Checks- Natalie Andrews, WSJ ($).

"Senate Majority Leader Mitch McConnell moved to derail efforts to quickly pass larger stimulus checks for many Americans, blocking Democrats’ call for a stand-alone vote on the payments sought by President Trump but opposed by most Republicans."

How Did People Use the First Round of Stimulus Checks- Clifford Colby, CNET. 

"From an October study, the Federal Reserve Bank of New York asked households how many received the first direct payment (89% did) and how they used their stimulus money. The survey, which included 1,300 households, found that the median payment per household was $2,400...

According to the findings:

  • 36% of stimulus payments were saved.
  • 35% of the money was used to pay down debt.
  • 18% of the funds were used for essential spending, such as necessary daily living expenses.
  • 8% used for nonessential spending, such as hobbies, leisure, vacation, and other items respondents do not need.
  • 3% of the funds were donated."

Second Round Stimulus Payments Could be Arriving Soon (like "tonight" soon)- Kelly Phillips Erb, Forbes.

"According to the Treasury Department, checks will begin to be direct deposited into accounts, arriving as early as tonight (Tuesday, December 29) for some. Direct deposit payments will continue into next week."

IRS Broadens Nursing Home Interest Deduction Limit Opt-Out Siri Bulusu and Lydia O'Neal, Bloomberg Tax

"New guidance released Tuesday offered some business-friendly changes to the list of criteria. In Rev. Proc. 2021-9, the agency shortened the required average patient’s stay to 30 days from 90, and allowed businesses to rely on a separate part of the tax code to see whether they qualify as “residential real property.”

The changes were requested in August by Wes Sheumaker, a partner at Eversheds Sutherland. In 2018 and 2019, Sheumaker reported lobbying Treasury and Congress on the “application of new rules regarding the deduction of business interest” in the 2017 law on behalf of Life Care Centers of America Inc., which declined multiple requests for comment on the issue earlier this year."

Carried Interest Holders Beware- Final Rules on the Horizon- Eric Yauch, Tax Notes ($).

"Final rules implementing the restrictions on carried interest are under review at the Office of Management and Budget and could be released soon.  The final regulations were received by the OMB’s Office of Information and Regulatory Affairs on December 23 as the IRS and Treasury race to release rules stemming from the Tax Cuts and Jobs Act by year-end."

 


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This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.