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Business Tax Breaks Thanks to the Recently Enacted CAA

Posted by Admin Posted on Mar 20 2021

When you operate a business, you have a variety of tax breaks available.

 

The recently enacted CAA extends and expands some of the breaks. We bring the following selection of them to your attention as a tax-strategy buffet.

 

  • You can deduct 100 percent of your business meals that are provided by restaurants in 2021 and 2022.
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  • Employers may continue through 2025 making Section 127 education plan payments that cover student loan principal and interest up to the plan maximum of $5,250.
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  • For residential rental property that you placed in service before 2018 and were depreciating over 40 years under the straight-line method, you can now use 30 years if you elect out of the TCJA business interest expense limitations.
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  • Farmers may elect a two-year NOL carryback rather than the five-year carryback retroactively, as if this change were in the original CARES Act.
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  • The $1.80 per-square-foot or $0.60 per-square-foot deductions for energy-efficient improvements to commercial buildings are now permanent.
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  • Small Business Administration PPP loans that are forgiven, Economic Injury Disaster Loan advances and loan repayment assistance are not taxable, and you suffer no tax attribute reductions as a result of the tax-free monies.