The IRS has issued crucial guidance on procedures to implement tax provisions of the recently enacted CARES Act.

Key Points:

..Allows a five-year carryback for net operating losses (NOLs) generated in 2018, 2019, and 2020 and temporarily lifts the 80% taxable income offset limitation for NOLs in such years

..Temporarily increases a taxpayer’s business interest deduction limitation to 50% of “adjusted taxable income” (ATI) in 2019 and 2020 and allows a taxpayer to use 2019 taxable year ATI to determine its 2020 limitation (special rules apply for partnerships and their partners)

..Allows improvements to an interior portion of a nonresidential building placed in service after September 27, 2017, to qualify for 100% bonus depreciation.