There are several aspects of the CARES Act that are directed to individuals, and the assistance comes from a variety of places and methods. What this means to you is that if you have been materially impacted by COVID-19, you might: (i) be eligible for...
The 2017 tax reform bill repealed the corporate AMT. Corporate AMT credits were available to corporate taxpayers as refundable credits over several years, ending in 2021. The CARES Act accelerates a corporate taxpayer’s ability to recover AMT credits. OUR BOTTOM LINE: This will allow the corporation...
The 2017 tax reform bill disallowed the deduction of “excess business losses” by a non-corporate taxpayer during taxable years 2018 through 2026. The CARES Act removes this limitation for 2018, 2019, and 2020. It will instead apply for taxable years 2021 through 2026. OUR BOTTOM LINE:...
The 2017 tax reform bill generally limits the amount of interest that can be deducted by most taxpayers in a taxable year to 30% of the “adjusted taxable income” (ATI) of such taxpayer for such taxable year. For the 2019 and 2020 tax years, taxpayers...
The 2017 tax reform bill changed the treatment of NOLs and could only be carried forward. The CARES Act relaxes these limitations on a corporation’s use of NOLs. The CARES Act allows businesses to carry back NOLs incurred in 2018, 2019, and 2020 for five...
In addition to potentially receiving the SSI Tax Credit, the CARES Act allows employers to defer the payment of the employer’s share of the 6.2% Social Security tax on wages paid beginning on March 27, 2020 and ending on December 31, 2020. The deferred amounts...
Under the CARES Act, employers may be eligible for a refundable tax credit for the employer’s share of the 6.2% Social Security tax (the “SSI Tax Credit”). The potential SSI Tax Credit is for 50% of the first $10,000 in qualified wages (including health plan...
The CARES Act also provides assistance to businesses through the modification of rules related to net operating losses (“NOLs”), interest expense deductions, alternative minimum tax credits and trade or business losses of non-corporate taxpayers. Many of these modifications are designed to provide critical cash flow...
The CARES Act creates a new type of loan for the United States Small Business Administration (the “SBA”) to administer. It is different from the disaster loans currently available through the SBA, as these loans are potentially forgivable up to 100% of the principal amount...
Right now, you should be focused on your health and well-being as well as your family’s. Please know we are working tirelessly to make sure you stay informed during this very eventful and confusing time. Our hope is that timely and factual news can support...