Business owners should check out a new option for immediate tax relief. If your business was profitable at one point, but suffered losses in 2018 and 2019, you can amend your business tax returns to offset your taxable profits going back five years. This could produce an immediate refund.
Here is the icing on the cake: Before the CARES Act, you could only offset losses against future profits and not past profits. Prior to the tax reform legislation, the business tax rate was much higher (as much as 35%), instead of the 21% rate that applies to future profits. That means more dollars can be deducted and more money goes into your pocket.
Check with your tax advisor for advice on your specific circumstances.
This blog is intended to just highlight the various rescue programs that may be available to you and is not intended to substitute for professional tax or legal advice. The McCarthy Law Firm is not a tax or accounting firm. Additionally, there are detailed regulations concerning each person’s eligibility and terms of repayment. Please check with your tax advisor and/or your accountant regarding your specific situation.
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The McCarthy Law firm is a full service family law firm that serves many small business owners going through a divorce. If you are going through a divorce or have questions about filing for divorce, we are here to assist you. Please call us at 520-623-0341 to explore your options.