This article will help you:
- Apply the CARES Act to your business returns (1041, 1065, 1120, 1120S)
- Understand what applying the CARES Act provisions changes on your tax returns.
- Find clients’ returns that you previously filed who may benefit from amending their return to apply the new provisions.
- This article is not applicable to ProSeries Basic users.
- Open the return to the Information Worksheet.
- In Part I locate the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act section.
- Check the Yes box.
You’ll need to check this box for every tax return you file going forward to ensure the return is accurate and using the latest tax laws. This feature allows you to only apply the CARES Act provisions to returns you file after the law’s passage and prevent calculations from changing on returns you previously filed until your ready to review the changes.
You can now use the Client Analyzer Query to identify returns that may need to be amended due to the Act. This tool can search through all of your clients - even those with locked returns - to check whether they’re affected by:
- Net operating loss changes (Individual and Corporate modules),
- Excess business loss changes on Form 461,
- Prior year minimum tax credit changes on Form 8827,
- Business interest expense limitation changes on Form 8990, or
- Depreciation of qualified improvement property changes.
To run the client analyzer query:
- Open ProSeries to the HomeBase.
- From the HomeBase View dropdown menu choose Client Analyzer Queries.
- In step 1) Select Return Type choose your business entity
- 1120 Corporation
- 1120S S-Corporation
- 1065 Partnership
- 1041 Trust
- In step 2) Select Query choose either of the new queries:
- Clients impacted by CARES Act Bus Interest Exp changes
- Clients impacted by CARES Act Qual Improv Prop Changes
- Click GO.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law on March 27, 2020 has retroactively made all qualified improvement property 15-year property that is eligible for special depreciation allowance.
To apply this to your assets in Fixed Asset Manager:
- Open the qualified improvement property asset.
- Change the Recovery Period (YY/MM) field from 39/00 to 15/00
- Scroll down to Qualified for Special Depr Allowance and check the applicable box.