Page 13 - BusinessWest January 23, 2023
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ERC
Deerfield
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the business was not suspended but suffered a “sig- nificant decline in gross receipts,” it may also qualify. A significant decline in gross receipts is measured on a quarterly basis, comparing 2020 quarterly receipts to 2019 quarterly receipts (50% or greater decline), 2021 quarterly receipts to 2019 (20% or greater decline), or Q4 2020 receipts to Q4 2019 receipts (20% or greater decline).
Perhaps the most complicated facet of determin- ing eligibility under ERC relates to how its provisions interact with the Internal Revenue Code’s special aggregation rules for businesses. Under the aggrega- tion rules, multiple businesses may be combined into an ‘aggregated group’ based on common ownership, where all employees of an aggregated group will be treated as employed by a single employer. The mem- bers of an aggregated group are determined based upon the stock or membership interest ownership of a business entity. If multiple businesses are comprised of similar ownership, those businesses might be com- bined into an aggregated group.
The ownership of a business might be comprised of individuals, trusts, partnerships, or corporations. The ownership composition of a potential aggregated group must be closely examined because the aggrega- tion rules and thresholds will differ based on whether the group consists of corporations, LLCs, or partner- ships. Further, the relationship of individuals to one another will also impact how the aggregations rules operate.
By way of example, imagine three individuals: Alice, Brady, and Carol. Each own a one-third interest in each of Alpha LLC, Bravo LLC, and Charlie LLC.
Under the aggregation rules, the three LLCs would form an aggregated group, known as a ‘brother-sister controlled group,’ based on their common ownership structure. All employees of all three LLCs would be treated as employed by a single employer. As another example, now assume that Alice and Brady own a one-half interest in Alpha LLC, Brady and Carol own a one-half interest in Bravo LLC, and Carol and Alice own a one-half interest in Charlie LLC. Under the aggregation rules, none of the LLCs would form an aggregated group with each other because any poten- tial aggregated group would not meet the requisite ownership threshold requirements.
An aggregated group will impact how the mem- bers of such group are treated under the ERC provi- sions. Most notably, the aggregation rules affect the determination of a business’ average number of full- time employees, as well as what constitutes a ‘signifi- cant decline’ in gross receipts among members in an aggregated group. The aggregation rules also impact how suspensions due to governmental orders are enforced among members of an aggregated group. Businesses should consider carefully examining their ownership compositions so beneficial business aggre- gations are not missed.
And remember, if it sounds too good to be true, it likely is. BW
Scott Foster chairs Bulkley Richardson’s Business/ Finance Department, and Jacob Kosakowski is an associate in the firm’s Trusts & Estates Department.
get their hair done, and engage with the many wellness-focused enterprises. “We want to be able to get people back and get people into the center of town.”
Moving forward, Deerfield officials hope to improve the municipal parking lot, known as the Leary Lot, to create a more direct pathway to the main streets in the center of town. Berkshire Brewing Company wants to expand, “and that’s a good place for them to do it because there is parking and accessibil- ity right next to the lot,” Warren noted. “But there’s also this concept of creating small spaces for people to eat, to gather, that are pretty and accessible and inviting.”
Fixing up the Leary Lot helps businesses around the center because it gives them some parking access and resources to other parts of town. With four other restaurants on Elm Street and another restaurant, Wolfie’s, on South Main Street, parking in the center of town is a massive need.
“If there’s no parking, people won’t shop or stop, especially older individuals,” Mason said. “If they don’t have easy parking, they just go somewhere else.”
The goal, of course, is to keep them in Deerfield, a town that has seen plenty of change over the course of 350 years and is looking toward a positive future while cel- ebrating its rich past. BW
MAINTENANCE INCLUDED
FOR
2
YEARS!
   PREOWNED VEHICLES PURCHASED FROM BALISE INCLUDE A 2-YEAR MAINTENANCE PLAN.
Start the year off with peace of mind! This January and February, we’re including a 2-year maintenance plan with most preowned vehicle purchases. That means we’ll cover every factory-recommended oil change, tire rotation, and multipoint inspection for the next 24 months or 24,000 miles so you can keep that cash for life’s other necessities.
  24-mo./24,000-mi. (whichever occurs first) maintenance plan included with purchase of used vehicle from 1/1/2023–2/28/2023, commencing on agreement application date/mileage. Plan valid for oil changes up to 5 qts., tire rotations, and multi-point inspections at Balise dealerships for vehicle manufacturer’s normal usage scheduled intervals only. Severe/heavy duty schedules and additional maintenance items may be required or recommended and are not included. Customer will be responsible for additional charges that may apply to diesel, exotic, luxury, high-performance, customized, or specialty vehicles. Plan is not transferable to another vehicle or owner. Not valid for purchases made prior to 1/1/2023. Some exclusions may apply, see dealer service center or baliseauto.com for details.
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