Net Operating Losses – 2303
The taxable income limitation on the deduction for NOLs is repealed for tax years beginning before 1/1/2021. In addition, losses arising in years 2018, 2019 and 2020 are now able to be carried back 5 years to offset prior year’s profits.
Excess Business Losses – 2304
The limitation on the ability to deduct business losses in excess of $250,000 single or $500,000 married filing jointly is repealed for tax years 2018, 2019 and 2020.
Business Interest Deduction – 2306
For taxpayers with gross receipts in excess of $26 million, the limit on the deductibility of interest expense is increased from 30% to 50% for tax years beginning in 2019 or 2020. In addition, for tax year 2020, taxpayers may elect to use their 2019 adjusted taxable income to figure the deduction.
Qualified Improvement Property – 2307
Improvements to the interior portion of a non-residential building now qualify for immediate expensing as a 15-year asset subject to bonus depreciation. This provision is retroactive to 1/1/2018.