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ppm4rent • Apr 03, 2020

Coronavirus Aid, Relief, and Economic Security Act (CARES ACT)


March 2020
Updated April 6, 2020

Email:ppm4rent@aol.com 
Telephone: 510.758.5636

Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

1. Unemployment
a. $600 per week per recipient for up to 4 months
b. Extended UI Benefits to Self-Employed Workers

2. Recovery Rebates
a. Use 2019 tax return or 2018 if 2019 has not been filed to determine rebate.
b. $1,200 per adult and $500 per child.
c. Income limits apply with taxable income over $75,000 (single) and $150,000 (married),
$112,500 (head of household).

3. Estimated Tax Payments
a. Any required estimated tax payment that are required during March 27, 2020 through October 15, 2020 shall be due October 15, 2020 as one payment.
b. Therefore, taxpayers should add the 1st, 2nd and 3rd estimated tax payments and make one payment on October 15, 2020. The 4th quarter payment due January 15, 2021 is still due.
THIS SECTION DID NOT MAKE THE FINAL BILL. ESTIMATE PAYMENTS ARE DUE April 15th,
June 15th, October 15th and January 15, 2021.

4. Temporary Waiver of Required Minimum Distribution Rules
a. Required Minimum Distribution (RMD) will not be applied for calendar year 2020. 
THIS SECTION DID NOT MAKE THE FINAL BILL. RMD still need to be made for 2020.

5. Delay of Estimated Tax Payments
a. Any estimate that was due between March 27, 2020 to October 15, 2020 is now due on October 15, 2020 as one payment.
b. Therefore, estimate tax payments for calendar year end taxpayers that are due April 15th, June 15th, and September 15th are now due October 15, 2020.
c. Therefore, estimated tax payments for fiscal yearend taxpayers that have estimated due between March 27, 2020 – October 15, 2020 are all due October 15, 2020.
THIS SECTION DID NOT MAKE THE FINAL BILL. ESTIMATE PAYMENTS ARE DUE April, 15th,
June 15th, October 15th and January 15, 2021.
 

6. Qualified Charitable Contributions (effective for 2020 tax year)
a. Contributions up to $300 will be allowed to be taken against taxable income prior to standard deduction or itemized deduction.
b. Temporary suspension of limitations on certain cash contributions.
c. Therefore, taxpayers will not be limited by 50% of their income on charitable contributions.
d. Corporation contributions would be allowed 25% of taxable income as qualified contribution expense.

7. Retirement Funds
a. Distributions from retirement plan as a result of effect of COVID-19 can be repaid within 3 years or the income can be recognized over 3-year period.
b. Limit on withdrawals is $100,000
c. Coronavirus-related distribution is defined as:
i. Anyone diagnosed with COVID-19
ii. Spouse or depended is diagnosed with COVID-19
iii. Experienced financial consequences as a result of quarantined, furloughed or laid off due to such virus or disease
d. Loans from Qualified Plans
i. Any loan from a qualified employer plan to a qualified individual shall substitute
$100,000 for $50,000 when applying Sec 72(p)(2)(A).
ii. Therefore, employees are allowed to take $100,000 in loans during 180-day period beginning March 27, 2020.
iii. Delay of repayment on loan from qualified plans shall be delayed for 1 year.

8. Employee Retention Credit
a. Credit will be allowed against employer’s employment taxes equal to 50% of the wages paid to each employee for the calendar quarter.
b. Applicable employment taxes are FICA and Medicare taxes owed by employer.
c. Eligible Employer:
i. Employer is fully or partially suspended during the calendar quarter due to order from government authority limited commerce, travel, or group meetings due to COVID-19
ii. Significant decline in gross receipts – 50% less gross receipts for 1st quarter of 2020 and 80% less gross receipts for quarter following the 1st quarter of 2020
d. This credit can be claimed by tax-exempt organizations.

9. Net Operating Losses
a. Net Operating Losses recognized after December 31, 2017 to January 1, 2020 shall be carried back to each of the 5 years preceding the taxable year of such loss
b. The tentative carryback and refund for tax years 2018 and 2017 is timely filed if filed not later than 120 days from enactment of this act or July 25, 2020.
c. Amendment is made for Tax Code section 172 to allow the carryback of NOL from 2018, 2019, and 2020.
 


10. Delay of Payment of Employer Payroll Taxes
a. Employer payroll taxes (FICA and Medicare) will be allowed to be deferred
b. Employee portion including withholding are still subject to deposit and payment requirements.
c. Deferral
i. 50% of employer payroll taxes need to be paid by December 31, 2021
ii. Remaining balance of employer payroll taxes need to be paid by December 31, 2022
d. Employer payroll taxes incurred from March 27, 2020 to December 31, 2020 can be deferred.
e. No penalties will be issued on late payroll deposits for the employer portion payroll taxes.
f. Late deposit penalties will be issued for late deposit of employee withholding and employee FICA taxes.

11. Small Business Act Loans - Forgiveness
a. Allows SBA covered loan program to be available to:
i. Eligible self-employed individuals
ii. Insured Credit Union
iii. Non-Profit Organizations
b. Amended allows the above to participate in the paycheck protection program which include paycheck protection loans.
c. Organizations with less than 500 employees
d. Maximum loan amount is 2.5 times the amount of average payroll costs incurred during the 1-year period before the date the loan is made.
i. For example – Average payroll costs is $50,000, loan would be $50,000 time 2.5 equaling $125,000.
e. Loan would be non-recourse with no personal guarantee and receive a risk weight of zero percent.

12. Small Business Act - Emergency Grants
a. Grants up to $10,000 are available to businesses, non-profits, ag co-ops, that apply for SBA loan.
b. The grant is to be used for providing paid sick leave, maintaining payroll, meeting increased costs of materials, rent or mortgage payments, and repaying obligations that cannot be met due to revenue loss.
c. The CARES Act allocated $10,000,000,000 to this and once the funds are gone the grants will not be given. However, SBA loans will continue to be issued.
d. To apply for the grant, you submit a SBA Loan application and required documentation timely.
 

13. SBA Loan forgiveness
a. Loan made by SBA between March 1, 2020 – June 30, 2020.
b. Loan was used to cover payroll costs, healthcare costs, interest on mortgage/debt payments, rent, and utilities
c. Forgiveness would be considered Cancellation of Debt income however would not be taxable in the year of forgiveness.
d. SBA Loan application shall include documentation verifying the number of full-time equivalent employees on payroll and pay rates including payroll tax returns, state payroll returns, debt obligation documents and any other documents SBA deems necessary.



Information and Resources for Residents

In these times of uncertainty, we look to stay connected and share relevant news and information with our residents. Our purpose at PPM: creating communities where people thrive. Now, more than ever, we find ways to support each other, as we navigate this road together.

This web page was created as a resource for our residents, and includes our recent Covid-related communications, along with helpful links to outside resources in areas of Community Support and Financial Support. Please let us know what else we can do to further support you.


Important Maintenance Guidance
Emergency maintenance requests only

As a reminder, we are temporarily deferring non-emergency maintenance requests in order to limit in-person contact and allow us to focus on urgent matters. Emergency requests include issues related to:

  • Life safety
  • Security
  • Heating and air conditioning
  • Appliances not working
  • Important lighting and outlets
  • Clogs, leaks, water supply or temperature
  • Pest control
If you’re interested in handling simple, non-emergency tasks on your own, please let us know. We can help you remotely and deliver any supplies you may need to complete the task (eg. plunger, zip-it hair removal drain tool).


Please remember:

Don’t overfill your refrigerator or freezer. Refrigerators and freezers will shut down if they’re over packed and don’t have proper air circulation. 
Don’t flush paper towels or wipes down the toilet. You’ll clog the toilet. Please have a plunger handy in case of clogs.
Proper garbage disposal. Please separate recycling material from garbage where recycling options are provided. If you have a trash chute at your building, please use the correct chutes for disposal. Make sure garbage bags are tightly sealed. If recycling material is too large for the recycling chute or bin, please bring it to the main trash room or dumpster.

Stay-at-Home Orders
Financial Support
State Resources for Financial Support
Community Support

Giving Back
Please consider donating to organizations in your local community, and assisting neighbors in need with grocery and pharmacy pickups, babysitting, and dog walking, to name a few.


All information is deemed reliable but not guaranteed. This was prepared by licensed California CPA to assist in understanding the ACT. Please consult with your own CPA for more information.

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