|March 31, 2020
Dear Clients and Friends,
We hope this email finds you in good health and spirit.
Below, please find four pertinent articles written from our tax specialists on their analysis of the $2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as details of the available recovery and relief programs from the Federal, state, and local governments.
Please reach out to your DK advisor if you have any questions.
Duffy Kruspodin, LLP
CARES Act Tax Provisions
Having passed the Families First Coronavirus Response Act on March 18th in an effort to limit the spread of the pandemic and support relief efforts, Congress turned to specific measures to stabilizing the economy. President Trump on March 27th signed the $2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act (H.R. 748). The CARES Act is considered “phase three” of lawmakers’ and the Trump administration’s collaborative response to the COVID-19 pandemic. Meanwhile, lawmakers on both sides of the aisle, have said they want to see a fourth economic relief measure.
The CARES Act looks to make a significant impact on the economy by providing loan forgiveness, supporting small businesses, enhancing unemployment insurance, and providing Federal loans to industries severely impacted by the pandemic. In addition, it provides tax relief and tax incentives for individuals and businesses alike. The majority of the tax relief is designed to increase liquidity in the economy, largely through the relaxation of limitations on business deductions and the deferral of taxes, but also the introduction of recovery rebates for individuals. This article will address the Federal tax relief provisions in the Act. It is important to note that each state will determine whether to follow the Federal changes for state income tax purposes.
Click here to read more about CARES Act Tax Provisions
State Reaction to COVID 19
State and local tax revenue departments are responding to COVID-19 with various types of relief. The California income and local taxes are discussed below.
Click here to read more about State Reaction to COVID 19
CARES SBA Options 2020
As we navigate these unprecedented times in recent history, the US legislature has implemented various new tax laws to help businesses stay afloat and retain employment of all those currently ordered to stay home. A major part of the Federal assistance for businesses comes in the form of a Paycheck Protection Program Loan (PPP loan), an Economic Injury Disaster Loan (EIDL) related to COVID-19, as well as the emergency EIDL grant program. There are rules for who qualifies, as well as some major differences in these programs, including total cash available, repayment, and process to apply. This summary is designed to help you determine which program you qualify for and which provides the most benefit to you and your business.
Click here to read more about CARES SBA Options 2020
COVID Local City Financial Assistance
Several measures and resources are being made available by local governments to support workers and businesses affected by the COVID-19 pandemic. This newsletter is discussing the financial relief at the local government level, focusing on City of San Diego and City of Los Angeles.
Click here to read more about COVID Local City Financial Assistance