CARES Act tax impacts and relief - The latest tax provisions and how they are impacting the financial industry


Friday, May 22, 2020 | By Spyridon Kalogerakis, Sr Director, Tax Optimizer, and Christopher Madpak, Managing Director, Tax Services

CARES Act tax impacts and relief - The latest tax provisions and how they are impacting the financial industry

Recently, the Treasury Department and IRS extended several deadlines, including the federal income tax filing due date, which was extended to July 15th. Employers are allowed a deferral of the employee portion of Social Security tax from the end of March through December 31st, 2020. The Medicare portion is unchanged. Participation in the Payroll Protection Program may affect eligibility for certain relief measures.

The CARES Act includes items of particular relevance to the asset management industry, such as turning off the excess business loss limitation rules for tax years beginning before 2021. In our recent webinar, we discuss how the CARES Act temporarily changes certain provisions in the 2017 Tax Cuts and Jobs Act, such as removing limitations on net operating losses. On May 15th the House passed the HEROES Act which would expand many of the provisions in the CARES Act (i.e., eliminate the $10,000 cap on itemized state tax deductions for 2020 and 2021) but would limit the scope of specific other provisions, including limiting NOL carrybacks for years after January 1st, 2018 and would also restore the 461(l) excess business loss limitation.  Chris Madpak and David Helprin, Managing Directors of SS&C Tax Services, participated in this panel along with Spyridon Kalogerakis, Senior Director, SS&C Tax Optimizer.

The panel also discusses Wash Sale rules and how SS&C Tax Optimizer can help you achieve the level of transparency you need to navigate them. Tax Optimizer is a tax analysis, accounting and planning solution designed to take transaction feeds from underlying systems and calculate lot level gains and losses of investments held or sold.

For more detail about the tax relief provided by the CARES Act and how SS&C can help you navigate these unusual times, download our webinar, CARES Act tax impacts and relief: The latest tax provisions and how they are impacting the financial industry.



Alternative Investments, Asset Management, Fund Administration, Regulation


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