THE FOLLOWING IS A VERY EARLY HIGHLIGHT LIST OF SELECTED PROVISIONS OF THE 880 PAGE ACT. INSTRUCTIONS FROM THE GOVERNMENT AGENCIES WILL BE COMING IN THE NEXT WEEKS/MONTHS.

INDIVIDUAL CHARITY DEDUCTION: For those using the standard deduction, a new above-the-line deduction of up to $300 will be available.

WAIVING RETIREMENT EARLY WITHDRAWAL PENALTY: For those with virus-related challenges for withdrawals up to $100,000. The withdrawal will be taxed over three years. ALSO RMDs from retirement accounts may be suspended in 2020. (Contact your retirement plan administrator for more details).

BUSINESS CREDIT: If your business was fully or partially suspended due to a COVID-19 shut down order OR gross receipts declined by more than 50% compared to the same quarter in 2019: You can get a refundable 50% tax credit on wages p to $10,000 per employee based on wages paid from March 13, 2020 through December 31, 2020.

BUSINESS NET OPERATING LOSS: If you had an NOL in 2018, 2019 or 2020, that loss can now be carried back five years. This also applies to S corporations, partnerships/LLCs and sole proprietorships.

QUALIFIED LEASEHOLD IMPROVEMENTS: Businesses that made qualified leasehold improvements to their leased buildings had only been allowed to write those off under IRC Sec 179 if the business was profitable in 2018 and 2019. Congress has now fixed this glitch in the law, allowing those improvements to qualify for 100% bonus depreciation. Thus, they will be deductible whether the underlying business has a net profit or not.

MORE INFORMATION WILL BE FORTHCOMING AS THESE NEW LAWS ARE “FLESHED OUT” BY THE VARIOUS AGENCIES INVOLVED.