Many retailers have spent the past several weeks applying for loans and planning for the day they can reopen. If you haven’t had time to review CARES Act tax credits and incentives, know that the new law allows you to:
- Claim a retention credit for 50% of employees’ “qualified wages” (up to $10,000 per worker) from March 13 through December 31, 2020.
- Deduct 100% of qualified improvement property in the year it was placed in service. The break applies through December 31, 2022, and retroactively to 2018 and 2019.
- Delay payment of 50% of the employer portion of Social Security taxes normally due through December 31, 2020, to December 31, 2021, and the other 50% to December 31, 2022.
- Carry back net operating losses arising in 2018, 2019 or 2020 up to give years to offset 100% of taxable income in those years, providing a current tax refund.
Many states and municipalities are also offering relief from sales and use tax penalties and late fees. If you have any questions or concerns, contact one of our tax professionals at (973) 298-8500.