 TITLE: How the CARES Act Stimulus Can Help Your Small Business CONTENT: Tax Help for Businesses\n-----------------------\nYou probably already know that Tax Day has been extended to July 15, 2020. The CARES Act also includes several tax relief provisions designed to help business owners keep more of their cash and maintain liquidity.\n*   **Delay of estimated tax payments**: Corporations can postpone estimated tax payments due after March 27, 2020, until October 15, 2020, with no cap on the amount of tax payments postponed.\n*   **Delay of employer payroll tax payments**: Employers and self-employed individuals can defer payment of the employer share of Social Security tax for their employees. The first half of the deferred tax can be deferred until December 31, 2021, and the second can be deferred until December 31, 2022. (Businesses receiving PPP loans are not eligible for this delay.)\n*   **Employee retention tax credit**: If your business operations were fully or partially suspended due to a COVID-19 shutdown order or if your gross receipts declined by more than 50% compared with the same calendar quarter for the prior year, you may be eligible for a 50% tax credit on wages up to $10,000 per employee. The credit is for qualified wages paid from March 13, 2020, through December 21, 2020. (Businesses receiving PPP loans are not eligible for the tax credit.)\n*   **Modifications for net operating losses (NOLs)**: NOLs from 2018, 2019 or 2020 can be carried back five years. The taxable income limitation is also removed so NOLs can fully offset income.\n*   **Modification of limitation on losses for taxpayers other than corporations**: The loss limitations for pass-through businesses and sole proprietors are modified so these taxpayers can benefit from the above NOL carryback rules.\n*   **Modifications for AMT tax credits**: If your business was due to get corporate alternative minimum tax (AMT) credits at the end of 2020 or 2021, you can claim that refund now.\n*   **Modification of limitation on business interest**: For 2019 and 2020, the amount of interest expense businesses can deduct on their tax returns is temporarily increased from 30% to 50%.\n*   **Amendment regarding qualified property improvements**: Businesses can immediately write off the cost of improving facilities instead of depreciating those costs over the 39-year life of the building.\nTaking advantage of these tax changes can have a significant effect on your cash flow. Talk to your accountant or tax preparer to find out how you can make the most of the modifications and reduce your tax liability. END