Page 20 THE EVERETT ADVOCATE – FRIDAY, AUGUST 13, 2021 WANTED DELIVERY DRIVER FULL TIME CALL 617-387-4838 FOCUS | FROM PAGE 18 The CARES Act also temporarily removes the 80% of taxable income limitation, thereby allowing taxpayers to utilize NOLs to off set 100% of taxable income in tax years 2018, 2019 and 2020. The CARES Act allows taxpayers whose business is typically profi table but as a result of the Coronavirus the business suffered an operating loss to be able to carry back the calendar year 2020 NOL up to fi ve years in order to recover income taxes paid during those fi ve years. Losses incurred during tax years prior to January 1, 2018, may be carried forward to tax years beginning after December 31, 2020, without being subject to the 80% limitation. After 2020, the NOL deduction, in any given year, will be limited to 80% of taxable income. For a corporation being able to carry back a 2020 operating loss up to fi ve years will allow for the recovery of taxes paid in those prior years when the corporate income tax rate was at 35% as opposed to the current 21%. This creates even more value to the NOL carryback deduction. It is worth reviewing the 2020 tax returns for both individuals, corporations and partnerships to determine if amending a prior tax return in order to take advantage of a NOL carryback deduction makes sense. It may be that carrying the NOL forward is more advantageous as well as more practical. For Advertising with Results, call The Advocate Newspapers at 617-387-2200 We follow Social Distancing Guidelines! Frank Berardino MA License 31811 • 24 - Hour Service • Emergency Repairs BERARDINO Plumbing & Heating Residential & Commercial Service Gas Fitting • Drain Service 617.699.9383 Senior Citizen Discount 379 Broadway Everett 617-381-9090 All occasions florist Wedding ~ Sympathy Tributes Plants ~ Dish Gardens Customized Design Work GIFT BASKETS Fruit Baskets or Info@advocatenews.net www.EverettFlorist.net
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