The Cares Act Can Also Reduce Tax Liability For Real Estate Firms

The $2 trillion economic stimulus package passed last week can reduce current tax liabilities and provide cash to taxpayers with net operating loss carrybacks.

The Capitol

WASHINGTON, DC—Last week Congress passed and President Trump signed the Coronavirus Aid, Relief, and Economic Security, or Cares, Act, releasing a $2 trillion stimulus on the US economy that is currently under siege from the coronavirus.

The main provisions of the Cares Act included $454 billion for TALF and other Federal Reserve lending facilities, 90 days of forbearance for multifamily owners with a federally-backed mortgage, temporary relief for banks from the CECL implementation and Troubled Debt Restructuring rules and $350 billion to small businesses.

But those measures are only the headlines. There are numerous other clauses in the bill designed to help businesses and Kenneth Weissenberg, corporate tax partner with EisnerAmper, has identified several that could benefit the real estate industry. Namely, “the Cares Act can reduce current tax liabilities and provide cash to taxpayers with net operating loss carrybacks,” he tells GlobeSt.com.

These include, according to Weissenberg: