Recover Overpayments from Previous Years and Lower Your Next Quarterly Estimated Tax Bill by Taking Advantage of Laws for Tax Deductions Ending December 2022
The CARES Act of 2020 significantly changed tax depreciation allowances for retail businesses under the Tax Cuts and Jobs Act, allowing accelerated depreciation times and bonus depreciation of 100%. Additionally, the EPAct was recently updated to allow inflation-adjusted depreciation for energy-efficient improvements in commercial buildings.
The potential tax savings here can be staggering – but your business must take advantage of these opportunities before they expire. The CARES Act and TCJA benefits expire at the end of 2022. Right now is the best time to determine your eligibility for these critical deductions.
Tax Deductions for the CARES Act
The Coronavirus Aid, Relief, and Economic Security Act of 2020 (CARES Act) fixes the Qualified Improvement Property (QIP) technical error of the Tax Cuts and Jobs Act, also known as the “retail glitch.”
- Shorten depreciation timelines for a wide range of eligible fixed assets
- Update eligibility for 100% first-year bonus depreciation allowances
- Retroactively affect tax years 2018, 2019, 2020, and 2021 (and apply to 2022)
How the Tax Cuts and Jobs Act Has Changed
The Tax Cuts and Jobs Act of 2017 (TCJA) was amended by the CARES Act and now includes a new Revenue Procedure allowable by the IRS, Rev Proc 2020-25.
This Revenue Procedure holds far-ranging implications for a truly surprising collection of assets (the details here could only have been created by a labyrinthine institution like the IRS), but most notably it:
- Provides extensions that help you recover taxes you previously filed
- Uncovers hidden deduction opportunities you would certainly have overlooked
New Adjustments for the EPAct
The Energy Policy Act of 2005 originally enacted the 179D energy tax deduction, which allowed up to $1.80 per square foot in depreciation for energy-efficient improvements to new or renovated commercial buildings.
The EPAct allowances and updates include:
- Inflation adjustments, making these tax deductions especially competitive now
- Extensive eligibility for many fixed assets
- Certification dos and don’ts
Don’t Miss Out on Tax Benefits You Deserve
As a business, your true ROI is calculated on what you still have after your taxes have been paid, which is why it is so important that you pay no more than the taxes you owe by staying abreast of the ever-changing tax laws. It isn’t what you make that counts, it’s what you keep!
The CARES Act, TCJA updates, and EPAct now allow your business to take additional deductions, accelerate depreciation on fixed assets to 100% by the end of 2022, and recover overpaid taxes immediately with quick refund checks or reductions in quarterly estimates. Taking advantage of these benefits can be as easy as filling out a simple IRS form.
These critical tax benefits are ending in December. Get all the facts so you can act now, before it’s too late.
Download the “Maximizing Tax Deductions with Recent Tax Laws” white paper from Paragon International
Serving clients since 1985, Paragon International, Inc. provides independent, impartial and accurate cost segregation analyses, and property valuations and appraisals to assist in and support decisions related to taxes, risk management, investment, financing and corporate planning. Our consultants have extensive fixed asset experience – they’re fixed asset experts. Because of that we are able to offer a unique combination of irreplaceable human resources and advanced technology. We have specialists experienced in valuing closely-held securities, patents and other intangible assets, business enterprises, buildings, equipment and real estate. In addition, Paragon provides complete inventory and asset management services and solutions, including software customization and training, barcode labels and scanners, and tailored inventory services such as data conversion and integration, asset inventories, asset policies, cost reconciliation, and appraisal services. Contact Paragon International to discover how we can help you.