The Coronavirus Aid, Relief, and Economic Security Act has provisions to help your business in these challenging times.
Recall under the Tax Cuts and Jobs Act NOL (net operating loss) carrybacks were disallowed, and carryforwards were limited to 80% of taxable income and carried forward indefinitely.
The CARES Act now allows for a 5 year carryback of losses earned in 2018 through 2020. This allows businesses to apply for refunds for tax returns up to five years prior to reduce taxable income from those periods.
The 80% limit for net operating losses of taxable income is suspended, so carryforwards can eliminate all taxable income in a period.
If you have losses, contact Tax Attorney Abtin Barzin for tax planning and preparation service.