The Paycheck Protection Program and Health Care Enhancement Act (H.R. 266) passed the Senate on April 21, 2020, and is pending in the House. The following is subject to both passage in the House and signature by the President. A summary of the Act: Increased Funding: The amount appropriated for loans under the Paycheck Protection […]
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The U.S. Chamber of Commerce is rolling out an interesting new program for small employers. The program offers $5,000 grants to small businesses (employing between 3 and 20 people), located in an economically distressed community, and that has been harmed by the COVID-19 pandemic. The application is coming out on April 20, 2020. It appears […]
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One issue that is likely to pop up for people affected by COVID-19 is getting their Last Will and Testament signed or updated. With mandatory quarantines for affected individuals, who are the people most in need of immediate assistance with their Wills, execution of a proper Will in accordance with EPTL 3-2.1 is almost impossible. […]
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Certain withdrawals from retirement plans are exempt from the 10% tax imposed under Section 72(t) for early withdrawals. Covered Plans include: • Individual retirement accounts and individual retirement annuities • 401(k) plans • 403(a) plans • 403(b) plans • Qualified pension, profit-sharing or stock bonus plans Withdrawals: • The maximum amount that may be treated […]
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The CARES Act makes two significant changes with respect to retirement plan loans to help people with COVID-19 hardships. Note that these provisions only affect an Qualified Individual, which is an individual who: 1. Is diagnosed with SARS-CoV-2 or COVID-19 by a test approved by the CDC, or 2. Whose spouse or dependent is diagnosed […]
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Section 2301 of the CARES Act provides for a refundable credit against employment taxes equal to 50 percent of the qualified wages with respect to each employee. There are numerous limitations and definitions that limit the scope and eligibility for the credit. However, for certain employers impacted significantly by COVID-19 shutdowns and who are maintaining […]
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Amount of Rebate: • $1,200 ($2,400 in the case of individuals filing a joint return) • $500 per qualifying child Eligibility: • The credit phases out in an amount equal to 5% of a taxpayer’s adjusted gross income over the following limits: o $150,000 AGI for joint returns o $112,500 AGI for heads of household […]
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The IRS has provided extensions with respect to certain payment and filing deadlines. The following are some of the extensions provided to date: Notice 2020-18 (superseding Notice 2020-17): • Any person with a federal income tax payment or a federal income tax return due April 15, 2020 is affected by COVID-19 and eligible for relief. […]
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The CARES Act corrects an error in the drafting of the Tax Cut & Jobs Act of 2017 (the TCJA). The TCJA changed the treatment of Qualified Improvement Property, causing it to be 39 year property that is not eligible for bonus depreciation. The correction changes QIP to 15-year property that is eligible for 100% […]
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The CARES Act provides relief to businesses in the form of greater use of NOL carrybacks. The Act allows a five year carryback of NOLs arising in the 2018, 2019 and 2020 tax years. Prior to the Tax Cut & Jobs Act of 2017 (the TCJA), taxpayers were allowed to carryback NOLs to the two […]
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