Based on the recent CARES Act legislation, there are a number of amended return opportunities that may benefit you and your business. Here is a quick look at some of the possible options.
- Qualified leasehold improvement provision retroactive for property placed in service after 12/31/17
- Temporary repeal of taxable income limitations for net operating losses for tax years beginning after 12/31/17 and to an NOL that is carried back to a year prior to 12/31/17
- Net Operating Losses (NOLs) incurred in a taxable year beginning after 12/31/17 and before 12/31/21 are available to be carried back for 5 years. Special rules apply for years that 965 (international provision) applies.
- The excess business loss limitation for non-corporate taxpayers is temporarily suspended for losses incurred in 2018, 2019, and 2020
- Corporate minimum tax credit is accelerated for tax years beginning after 12/31/17
- Business interest limitation increased to 50% from 30% for tax years beginning in 2019 and 2020. However, this provision doesn’t apply to partners in a partnership for 2019. The partners are allowed to deduct 50% of the 2019 excess interest allocated to them deducted in 2020 and the other 50% deducted as excess taxable income is allocated to the partner. The partner can elect out of this provision, although we don’t know why they would.
For more information and how we can help you take advantage of amended return opportunities, please contact us at 401-831-0200.