These are the CARES Act Provisions Real Estate Owners Should Know

San Diego

Real estate owners should pay close attention to the provisions in the CARES Act. In addition to the major business funding benefits, there are several provisions that specifically benefit real estate owners and investors, according to Phil Jelsma, an attorney at Crosbie Gliner Schiffman Southard & Swanson. These benefits includes removing limitations on net business losses, pass-through losses and qualified improvement on leasehold properties.

In terms of net business losses, Jelsma, a partner at Crosbie Gliner Schiffman Southard & Swanson, says, “The CARES Act temporarily suspends the limitations on net business losses that an individual can use to offset income from other sources. Initially, this was kept at $250,000 for a single household or $500,000 if married filing jointly. The new law suspends this cap for tax years 2018, 2019 and 2020.”