WEBINAR: Monetizing the Tax Changes in the CARES Act for Real Estate Owners

From the AICPA Journal of Accountancy*: The IRS has launched an online portal for taxpayers who are eligible to receive an economic impact payment but who are not normally required to file an income tax return because their income is too low ($12,200 for individuals or $24,400 for married couples filing jointly for 2019). The online portal allows people to enter their required information, which the IRS will use to confirm their eligibility and then calculate and send them a payment. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act. P.L.116-136, eligible individuals will receive an economic impact payment of up […]

Most states are providing extensions. Here are recent developments in New York and our two contiguous states, Connecticut and New Jersey. Please contact your Gettry Marcus advisor for information on additional states. Connecticut Connecticut business tax returns are usually due one month after the federal return for the same entity. This applies to corporations and pass-through entities (e.g., partnerships and LLCs). The returns normally due between March 15, 2020, and May 31, 2020, are now due June 15th.  There is no extension for estimated tax payments that were due between March 15, 2020, and June 1, 2020, nor is there […]

The 2017 TCJA consolidated certain categories of depreciable property known as (1) qualified leasehold improvement property, (2) qualified restaurant property, and (3) qualified retail improvement property into one category called qualified improvement property (“QI Property”). The Committee Reports to the TCJA indicated that a general 15-year recovery period was to have been provided for QI Property. However, that specific recovery period failed to be reflected in the statutory text. As a result, QI Property fell into the 39-year recovery period for nonresidential rental property. That also made it ineligible for 100% Bonus Depreciation. The CARES Act provides a technical correction to […]

Modification of Limitation on Losses for Noncorporate Taxpayers Before the enactment of the 2017 TCJA, noncorporate taxpayers were allowed to use business deductions to reduce or eliminate their nonbusiness income in the same tax year.  The TCJA added a provision disallowing the deduction of “excess business losses” by noncorporate taxpayers for tax years beginning after Dec. 31, 2017, and ending before Jan. 1, 2026. An excess business loss is the excess of the (1) taxpayer’s aggregate trade or business deductions for the tax year over (2) the sum of the taxpayer’s aggregate trade or business gross income or gain plus […]

Changes to Net Operating Losses (NOLs) Under the TCJA of 2017, NOLs incurred after 2017 could only be carried forward, and could only offset 80% of taxable income in the year they were utilized.  The CARES Act temporarily removes the taxable income limitation to allow an NOL carry forward to fully offset income for tax years beginning before 2021. For tax years beginning after 2021, taxpayers will be able to take: (1) a 100% deduction of NOLs arising in tax years prior to 2018, and (2) a deduction limited to 80% of taxable income for NOLs arising in tax years […]

Congress has passed the CARES Act. The following is a brief summary of the key tax provisions affecting individuals and businesses. More detailed information will be provided in the near future. Many of these provisions are retroactive and may require guidance from the IRS. Provisions Affecting Individuals Individual recovery rebate/credit – A tax credit for 2020 will be advanced to eligible individuals in the form of a stimulus payment. Eligibility begins to phase-out for single individuals whose adjusted gross income is $75,000 and for individuals filing a joint return at $150,000. The credit is $1,200 per individual and $500 for each […]