The TWO TRILLION DOLLAR economic stimulus package, known as the cares, act is now on the books and there are significant changes to the tax law, that should help alleviate some of the CO-VID 19 pain. As you probably know… The state and federal income tax deadline has been extended to july 15th.
Here are some additional benefits now available. Payroll taxes: the cares act allows employers to delay the payment of their portion of 20-20 payroll taxes until 20-21 and 20-22. There is also a new refundable credit against payroll tax liability equal to the first 10, thousand dollars in wages per employee. Net operating losses: the 20-17 t-c-j-a net operating loss rules have been modified. The 80% rule is lifted and losses can now be carried back 5-years. The excess loss limitation or e-l-l rules for pass- through entities are suspended. The interest expense limitations are increased to 50% for tax years20-19 and 20-20.
Taxpayers can also elect to calculate the interest limitation for 20-20 using their 20-19 adjusted taxable income as the relevant base, which often will be significantly higher. The topics can be complex and the rules are changing rapidly. The topics can be complex and the rules are changing rapidly. If you need help understanding the cares act-and regulations, or any tax matter in the sarasota area, mary king is still available… working remotely, and ready to help whenever you need it. Call her today, or visit floridataxlawyers.com