CARES ACT Tax Ideas

CARES ACT- Major Tax Law Changes= Refunds

The CARES Act, signed into law on March 27, 2020, includes many major tax law changes that can be used by business owners to increase deductions and claim refunds of prior taxes paid. Below is a brief description of four major tax law changes:

  1. Qualified Improvement Property: If you made qualified improvements to the interior of commercial real estate in 2018 or 2019, we can help you amend your returns to write-off 100% of the cost of the improvements and claim a refund of prior income taxes paid.
  2. Limited Business Interest Expense: If your 2019 business interest expense was limited, we can help you amend your returns to write-off additional interest expense and help you get the economy moving again.
  3. Excess Business Losses: If your 2018 or 2019 business losses were limited, we can help you amend your returns to deduct additional losses and increase the balance in your bank account.
  4. Net Operating Loss Carryback: Any Net Operating Loss (NOL) generated in 2018, 2019, or 2020 can be carried back up to five years and be used to put cash into your pocket. This includes any NOL's generated or increased due to items # 1, 2, or 3 listed above.

Please contact RDG + Partners with your tax related questions. We will review your tax returns and determine how you can take advantage of the significant tax law changes from the CARES Act.

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RDG+Partners wants to be the primary advisor for motivated business owners. The firm is committed to providing boutique level accounting, tax and business consulting services to the Rochester, NY community.