It has been quite a year and we’re not even half way through. A declared pandemic, multiple rounds of government-injected stimulus packages and nationwide closures have completely changed the way we currently do business. Only three years ago, we were just beginning a conversation about major tax reform. Now, many of those historical tax changes have been rolled back or deferred in an effort to help taxpayers survive the COVID-19 pandemic and resulting economic collapse.
The general theme of the tax provisions enacted in the past few months has been to increase deductions, reduce restrictions on the ability to utilize losses, and provide opportunities to carry back net operating losses and claim refunds. Changes include correcting the so-called “retail glitch” in the Tax Cuts and Jobs Act that had failed to classify qualified improvement property as bonus eligible with a 15-year life, ease restrictions on the deductibility of business interest expense, and allow taxpayers to retroactively make certain changes back to 2018.
Taking each provision alone, they sound relatively simple. However, their interplay coupled with the processing of amending prior returns, considering different tax rate structures, and revising past elections add considerable complexities in analyzing how to best apply these new rules for yourself and your business.
To supplement our alerts and webinars, we are summarizing here how to take advantage of the many facets of the stimulus packages.
Visit the sections below for more on what taxpayers need to know to help them through the pandemic and beyond:
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.