While stimulus checks and forgivable loans have received a lot of attention during the COVID-19 shutdown, businesses and individuals should not overlook other available relief provisions that could help them reduce taxes and improve cash flow. Several of these measures could enable a taxpayer to file amended federal tax returns to recover taxes paid in previous years and request a refund. (more…)
The Cares Act Creates Charitable Tax Incentives
Many individuals incorporate charitable giving into their estate plans, providing assistance to their favorite charities while preserving sufficient assets for their heirs. Typically, the charitable donations are structured to maximize the tax benefits on the books.
Now, the Coronavirus Aid, Relief and Economic Security (CARES) Act increases those tax incentives. Under the CARES Act — adopted to address the fallout from the COVID-19 pandemic — taxpayers of all stripes may realize additional tax savings from charitable donations in 2020. (more…)
COVID-19 Recovery - How the Employee Retention Credit Could Improve Cash Flow
As post-COVID recovery efforts gain momentum, many businesses are taking a fresh look at some federal stimulus and tax relief programs they had not previously considered. One such program, the employee retention credit contained in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, could be especially useful in helping companies bring back furloughed or laid-off employees.
In addition to helping reduce employment tax obligations, it could also help cash-strapped companies of any size improve cash flow during times of reduced revenue. (more…)
Qualified Improvement Property Changes Create Tax Savings
By Rachel Gillespie, CPA, Principal
ASL Real Estate Group
The Coronavirus Aid, Relief and Economic Security (CARES) Act created several new funding options and tax opportunities for Bay Area businesses. This includes the Paycheck Protection Program, changes to Economic Injury Disaster Loans (EIDL), and the introduction of payroll tax credits for qualifying paid sick leave and for employee retention efforts. The central focus of the changes was to provide immediate cash flow opportunities through low-interest loans, payroll tax credits, and other incentives. While these provisions in the CARES Act often receive the most attention, there was another change that can provide immediate cash flow benefits to both landlords and tenants. Through a technical correction provided in the CARES Act, Qualified Improvement Property (QIP) placed into service in 2018 or later, is now considered 15-year property and eligible for 100% bonus depreciation. This technical correction opens the door to new saving opportunities for qualifying taxpayers. (more…)
CARES Act - Individual Provisions
The CARES Act contains several provisions to get cash directly into the hands of taxpayers who are either currently employed or not working. These sources of cash include: