Section 9642 of the Act adds a credit for an eligible self-employed individual (Realtors, Brokers, and Real Estate Professionals). The amount of the credit is an amount equal to the qualified sick leave equivalent amount with respect to the individual. An eligible self-employed individual is an individual who regularly carries on any trade or business within the meaning of Code Sec. 1402 and would be entitled to receive paid leave during the tax year pursuant to the EPSLA if the individual were an employee of an employer (other than himself or herself) and the EPSLA applied after March 31, 2021.
Qualified Sick Leave Equivalent Amount: The term ”qualified sick leave equivalent amount” means, with respect to any eligible self-employed individual (Realtors, Brokers, and Real Estate Professionals), an amount equal to (1) the number of days during the tax year (but not more than 10) that the individual is unable to perform services in any trade or business referred to in Code Sec. 1402 for a reason with respect to which such individual would be entitled to receive sick leave, multiplied by the lesser of (i) $200 ($511 in the case of any day of paid sick time described in Section 5102(a)(1), (2), or (3) of the EPSLA, applied with the modifications relating to seeking treatment or testing relating to COVID-19, or (ii) 67 percent (100 percent in the case of any day of paid sick time described in Section 5102(a)(1), (2), or (3) of the EPSLA) of the average daily self-employment income of the individual for the tax year.
Average Daily Self-Employment Income: For purposes of the credit, the term ”average daily self-employment income” means an amount equal to the net earnings from self-employment of the individual for the tax year, divided by 260. An individual may elect to substitute “the prior tax year” for “the tax year.” The taxpayer can elect to not take a certain day or days into account. This credit is treated as a refundable credit.
Please contact the office of Don Fitch Accountancy at (760)567-3110 or Email Don.Fitch@CPA.com if you have any questions or would like additional information.
DON FITCH, CPA
74478 Highway 111 #3
Palm Desert, CA 92260
Toll Free: (877)CPA-Help or (877)272-4357
P.S. My firm is based upon referrals. Please feel free to refer my firm to anyone you know that is looking for a new CPA and/or tax preparer. Thank you in advance.
(Updated 03/13/2021 16:14)