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© 2019 by Fair Anderson & Langerman

  • Fair, Anderson Langerman

HIGHLIGHTS FROM THE PROPOSED STIMULUS BILL

While the Coronavirus Aid, Relief, and Economic Security (CARES) Act has yet to be signed into law, if/when it passes, we anticipate the following tax provisions for businesses.


PLEASE NOTE: All information listed below is subject to change pending the final version of the CARES Act.


  • Tax credit rebates of up to $1,200 per individual and $500 per child that are phased out for taxpayers with annual gross income over $75,000 ($150,000 married filing jointly and $112,500 head of household) and will be "rapidly advanced."


  • The delay of employer payroll tax deposits for 2020 (50% due by December 31, 2021, and 50% due by December 31, 2022).

  • A refundable employer retention credit equal to 50% of qualified wages against quarterly employment taxes, to offset up to $10,000 of wages paid per employee in 2020.


  • The reinstatement of Net Operating Loss carrybacks for the 2018–2020 taxable years, and repeal of the 80% taxable income limitation for the 2018–2020 taxable years.


  • A TCJA technical correction that classifies qualified improvement property as 15-year recovery period, allowing the bonus depreciation deduction to be claimed for such property retroactive as if it was included in the TCJA at the time of enactment.


  • Penalty-free withdrawals of tax retirement funds of up to $100,000 (income recognized over a three-year period).


  • A temporary waiver of RMD requirements in 2020.


  • The suspension of charitable contribution limits for 2020.


  • The deferral of excess business loss limitations until 2021.


  • An increase in the business interest deduction limitations from 30% to 50% of adjusted taxable income for the 2019 and 2020 taxable year.


  • An exclusion from income for employer-payments made on employee student loans paid before January 1, 2021.


  • The acceleration of the corporate credit for prior-year minimum tax liability, allowing 100% of the credit to be claimed in 2019 (2018 at the election of the taxpayer).


  • A COD exclusion of small business loans forgiven under the Act.


Thank you to Spidell Publishing Inc. for providing highlights and early information.

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