critical diagnostic cares act provisions

Forum|Forum|6 years ago
April 22, 2020
2 replies
21 views

There is a new critical diagnostic re: the Cares act. Should this be checked on all returns?

Lacerte Tax

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T

TaxGuyBill

Level 15

What exactly are you asking?

The diagnostic is probably indicating that Intuit has NOT updated their software yet for the CARES Act, so you need to know if anything in the CARES Act affects the return. For example, NOLs or Qualified Improvement Property.

K

Kathleen1Author

Level 5

The critical diagnostic indicates you have to check a box to apply the provisions of the Cares act as it related to NOL carrybacks and business interest limitations. But there is no information regarding what impact it has on the return if you check it. But it appears you have to check it to efile returns.

C

CS Bray Accounting LLC

Level 4

It's a little silly that it suggests in the diagnostics that applying these provisions is optional, but you are in fact required to check the box to apply them in order to e-file. I am holding off e-filing clients until this is clarified further.

K

Kathleen1Author

Level 5

Lacerte has now provided info in the F1 Help to explain what checking this box does.

Miscellaneous Information/Direct Deposit

Screen 3; Code 1795

Select the box (or enter 1) to apply the Coronavirus Aid, Relief, and Economic Security (CARES) Act provisions to the individual return.

This checkbox will:

Suppress Form 461 – Limitation on Business Losses
Update Form 8990 - Limitation on Business Interest Expense Under Section 163(j) from 30% to 50% limit
Generate critical diagnostic to remove “Carryover absorbed in 2019 [O]” from Net Operating Loss input screen to suspend the 80% of taxable income limitation on the use of NOLs.