Article
Tax tools companies can use to help improve cash flow
May 5, 2020 · Authored by Bill Sturges, Marco Valverde
During these uncertain times of the COVID-19 pandemic, many companies face closures, decreased sales, and a surplus of inventory, among other challenges. Under these circumstances, maintaining your company’s operations and staff are top of mind.
Most of the following strategies available to companies offer a number of opportunities to increase current year losses and the recovery of taxes paid in prior years.
Here’s a list of tax tools that can be used to generate a one-time or recurring cash flow for your operation:
- Quick refunds available for c corporations
- Net operating loss (NOL) carrybacks and carryforwards
- Electing to treat certain 2020 losses as 2019 deductions
- Inventory strategies
- Accelerating deductions for partially worthless bad debt
- Accelerating deductions for returns and allowances
- Cost segregation studies and qualified improvements
- Tax accounting method changes
- Increase of the section 163(j) limit
- Suspension of excess business loss rule
- Payroll planning opportunities
- Property tax
- Research & development (R&D) tax credit
Tax law changes and cash flow strategies for manufacturers
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.