The stimulus bill(Cares Act) has been signed into law and has many provision to help us deal with the economic impact of the pandemic. Some of the more significant items are listed below:
1. Each qualifying individual will get $1,200 ($2,400 if filing jointly) plus $500 per child under 17. The amount phases out at $75,000 ($150,000 if filing jointly) of adjusted gross income so no payments will be made at an adjusted gross income of $99,000 for individuals and $198,000 for joint returns. Dependents do not qualify for payments. The Treasury department will use your 2018 tax return or 2019 if it has been filed to determine your adjusted gross income. The payments will be direct deposited into your bank account if that was provided on your tax return. Otherwise you will get a check. The IRS and Treasury have a website irs.gov/coronavirus which will soon provide more information about these payments. These payments are not taxable income.
2. A charitable contribution of up to $300 can be deducted beginning in 2020 for those that do not itemize.
3. You do not have to take a required minimum distribution from your retirement plan in 2020 which would have been based on the value of your account at 12/31/19.
4. Waives the 10% early withdrawal penalty from retirement plans for coronavirus related distributions.
5. Qualified leasehold improvements, qualified restaurant property, and qualified retail improvement property now have a depreciation period of 15 years which qualifies them for 100% bonus depreciation. Generally to be qualified, construction had to be done on nonresidential real property already placed in service.
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