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The Coronavirus Aid, Relief, and Economic Security Act, 
The CARES Act” provides tax relief to individuals and businesses

After days of furious negotiations, Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $2.2 trillion price tag for tax relief and incentives for individuals and businesses makes it the most expensive piece of legislation ever passed. It includes the greatly anticipated provision for recovery rebate credits to individuals.  Here are some of the major aspects of The CARES Act. 

You may have many questions about how this will affect you and your taxes.
If you have any questions, please give us a call.

We are here to help.

Anderson, Spector and Co PC


ASPECTS of The CARES ACT: Excess Business Losses of Noncorporate Taxpayers

Posted by Admin Posted on Apr 06 2020

Excess Business Losses of Noncorporate Taxpayers

Under the CARES Act, the limitation on the deduction of excess business losses for noncorporate taxpayers will not apply for tax years beginning in 2018, 2019, and 2020. 

 An “excess business loss” is the excess of a taxpayer’s aggregate deductions for the tax year from its trades or businesses over the aggregate gross income or gain for the tax year from those trades or businesses plus $250,000 ($500,000 for joint return filers). Under the Tax Cuts and Jobs Act, a noncorporate taxpayer is not allowed to claim a deduction for excess business losses for tax years beginning after December 31, 2017, and before January 1, 2026. However, the CARES Act now modifies the deduction limitation to apply for tax years beginning after December 31, 2020 and before January 1, 2026. 

 Because the limitation on excess business losses no longer applies to the 2018 tax year, taxpayers who were subject to the limitation for 2018 have an opportunity to file an amended return and claim a potential refund. 

The modification to the loss limitation for shareholders and partners of pass-through businesses and sole proprietors, will help noncorporate taxpayers utilize business losses and improve their cashflow. Please call our office to determine if you will benefit by filing an amended return. We are here to assist you.

Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, Anderson, Spector & Co., P.C. would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services.