Paul L. Caron
Dean



Friday, April 10, 2020

Summary Of The Tax Provisions Of The CARES Act

David S. Miller, Muhyung (Aaron) Lee, Kathleen Semanski & Sean Webb (Proskauer, New York), Summary of the Tax Provisions of the CARES Act:

This paper summarizes the tax provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

  1. Recovery Checks
  2. 50% Employee Retention Credit for Employers Closed Due to Covid-19
  3. Small Business Loan Forgiveness Does Not Give Rise To Cancellation of Indebtedness Income
  4. Tax Treatment of Economic Stabilization Investments
  5. The CARES Act Does Not Repeal Downward Attribution
  6. NOLs; Excess Business Losses
  7. Increase the Section 163(j) Limitation on Business Interest Expense Deduction From 30% to 50%
  8. Filing and Payment Extensions
  9. Waiver of 10% Early Withdrawal Penalty for Distributions of Up to $100,000 From Retirement Funds for Affected Individuals
  10. $300 Above the Line Charitable Contribution Deduction; Relaxation of the Charitable Contribution Limitation
  11. Immediate Expensing of Costs Associated With Improving Qualified Improvement Property
  12. Acceleration of Alternative Minimum Tax (AMT) Credits
  13. Tax-Free Employer Repayment of Employee Student Loans

https://taxprof.typepad.com/taxprof_blog/2020/04/summary-of-the-tax-provisions-of-the-cares-act.html

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Comments

I'm puzzled that the piece doesn't include the suspension of required minimum distributions for 2020 (a provision I actually wish weren't there). The waiver is good news for those who can afford not to take their distributions, but not for those less well-off who'll still have to take them.

It's one instances of many, many others of tax policy skewed toward those at the top.
Let's hope for a post-pandemic with fewer tax favors going in that direction.

Posted by: Gerald Scorse | Apr 10, 2020 11:49:50 AM