Source: Consolidated Appropriations Act of 2021 (HR 133)

Following are selected new taxpayer-friendly tax changes:

Business Meal deduction: For 2021 and 2022 restaurant purchases for sole proprietors, corporation, partnerships, LLC’s… NOW 100% DEDUCTIBLE. Old law was 50%. Business purpose and documentation rules continue and business entertainment is non-deductible.

Charitable contributions for those not itemizing: For contributions made in 2021, $300 deduction (single) and $600 (joint) deduction even if not itemizing.

Solar installation credit: For those purchasing (not leasing) new solar energy residential energy property , the 26% credit is extended for years 2020 and 2021. For 2022, the credit is 22%. The credit expires after 2022.

Early withdrawal from retirement plan: [Check with your plan administrator for details]. This is for Presidentially declared disasters between 1/1/20 and 2/25/2021: Penalty free distributions up to $100,000. These can be taxed OR recontributed over three years.

PPP loan expansion: [Check with your bank for details]. Available for those with at least a 25% drop of gross business sales Q1, Q2 or Q3 2020 compared to 2019. Borrowers can submit supplemental PPP loan requests in all cases where the original PPP loan amount would have changed due to new rules. Deadline for application is March 31, 2021.