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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The FY2021 New York State Budget adopts provisions requiring prevailing wages on certain construction projects receiving public benefits. The law, codified at Section 224-a of the Labor Law, applies to construction work on projects with total construction costs over $5 million with public funds providing at least thirty percent of the total construction costs. If […]
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Under Section 1110 of the CARES Act, Congress authorized certain advances in the amount of $10,000 to small businesses to assist with the impacts of COVID-19. These $10,000 payments are more in the nature of a grant and are not expected to be repaid by the recipient. Eligible Entities: • Businesses with not more than […]
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Effective at 8:00PM on March 22, 2020, Governor Cuomo issued a moratorium on the enforcement of either an eviction of any tenant residential or commercial, or any foreclosure of any residential or commercial property for a period of 90 days. This moratorium has caused a lot of fear for landlords of both residential and commercial […]
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The Treasury Department has released the application for 7(a) loans under the Payroll Protection Program. The application is available at: Paycheck-Protection-Program-Application-3-30-2020-v3 Based upon further information provided by the Treasury Department, note the following: • Due to the expectation that a high number of companies will participate in the program, forgiveness is likely to be capped […]
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Governor Cuomo issued Executive Order No. 202.12 authorizing the Commissioner of the Department of Taxation & Finance to provide relief from tax filing and payment deadlines. Pursuant to Notice N-20-2, the Commissioner has exercised his discretion and extended the due date for personal income tax and corporation tax returns originally due on April 15, 2020 […]
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Planning Issues for Re-Hiring Employees and Payroll Protection Program Loans It is laudable and noteworthy that the Payroll Protection Program SBA 7(a) loan program accommodates the many businesses that have been crushed by COVID-19 and the mandatory closures in New York and many other states. The impact on employees has also been severe. Over 3 […]
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Payroll Protection Program As part of the CARES Act, the SBA 7(a) Loan Program would provide significant assistance to small businesses in the form of potentially forgivable loans. Eligibility: Eligible businesses include: 1. Small business concerns 2. Any for-profit business with fewer than 500 employees 3. Any 501(c)(3) or (19) not-for-profit with fewer than 500 […]
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The CARES Act includes an exception from the excise tax on distilled spirits for distilled spirits removed from bonded premises between January 1, 2020 and December 31, 2021 for use in or contained in hand sanitizer produced and distributed in accordance with FDA guidance relating to COVID-19. Furthermore, rules for labeling and bulk sales under […]
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