2020 Year-End Planning – TCJA Modified Under the CARES Act
By Bobby Hoffman
Several tax provisions under the Tax Cuts and Jobs Act (TCJA) were modified by the CARES Act for 2020 and earlier years providing opportunities to amend prior year returns. Here are highlights for tax planning consideration at 2020 year-end.
- Qualified Improvement Property: A 15-year recovery period is retroactively assigned to qualified improvement property placed in service after December 31, 2017 allowing the property to be depreciated over 15 years or, alternatively to qualify for 100 percent bonus depreciation.
- Net Operating Losses (NOLs): NOLs arising in tax years beginning in 2018, 2019, and 2020 now have a five-year carry-back period with an unlimited carry-forward period and are not limited to 80% of taxable income.
- Business Interest Deduction: Limit increased from 30% to 50% of the taxpayer’s adjusted taxable income for the 2019 and 2020 tax years with special rules for partners and partnerships.
- Excess Business Losses Limitation for Non-corporate Taxpayers: Does not apply for tax years beginning in 2018, 2019, and 2020.
For more information regarding year-end tax planning, please contact us at 404-255-7400 or info@hoffmanestateaw.com.
Author
-
Bobby joined the Tax Department at Hoffman & Associates in early 2012 after gaining both Audit and Tax experience while working at a local CPA firm. He specializes in tax planning and compliance for individuals and small businesses.
Bobby joined the Tax Department at Hoffman & Associates in early 2012 after gaining both Audit and Tax experience while working at a local CPA firm. He specializes in tax planning and compliance for individuals and small businesses.
Recent Posts
hoffmanestate0 Comments
$1 Billion in Tax Refunds Expiring on May 17th, 2024
Juli Findling
What Should Be Included In Your Will?
Tabitha Relota
IRS to Focus on High-Income Earners in 2024
All Categories
Tags
Alaina Davalos
asset protection
assets
beneficiaries
beneficiary
Bobby Hoffman
business attorney
business law
CARES Act
Corporate attorney
Credit Shelter Trust
doug mcalpine
Estate
Estate - Tax
estate plan
Estate Planning
estate planning attorney
estate planning attorneys in atlanta
estate planning attorneys in georgia
estate planning attorneys in sandy springs
estate taxes
general power of attorney
georgia
Gift Tax
GRAT
Hoffman & Associates
hoffmanestatelaw.com
IRA
IRS
Joe Nagel
mary daugherty
Mike Hoffman
probate
rhiannon brusco
Roth IRA
taxable estate
tax attorney
tax controversy
tax planning
Todd Sehhat
trust
trustee
trusts
will
wills
Get a Free Consultation
We are here to help.
Call us today to discuss your issue.
Call us today to discuss your issue.