The tax provisions of the CARES Act, enacted on March 27, 2020, will provide meaningful relief to taxpayers, both individuals and companies, dealing with the fallout of the COVID-19 crisis.

Key provisions include:

  • employee retention payroll tax credits for employers subject to closure due to COVID-19;
  • substantial extension of the due date for the payment of the employer portion of payroll taxes (including self-employment taxes);
  • substantially expanded use of net operating losses;
  • modification of the limitation on the deductibility of excess business losses for taxpayers other than corporations;
  • acceleration of refunds for alternative minimum tax credits for corporations;
  • modification of the limitation on the deductibility of business interest expense;
  • substantially increased depreciation of qualified improvement property;
  • recovery rebates for individuals;
  • modification of the limitations on the deductibility of charitable contributions during 2020; and
  • special ownership change and debt issue price rules for federal government loans and equity investments provided to aviation companies (and other companies critical to national security) under the CARES Act.

The following guide to these tax provisions will help you navigate these changes in these challenging times.

View the Alert.