Friedman’s Adnan Islam and Edward Ajodah share their insights with Bloomberg Tax on how businesses can monetize their losses under provisions in the coronavirus relief legislation.
The economic shock of the Covid-19 pandemic and the resulting malaise is unprecedented in the U.S. and recent world history. Specific industries have suffered adverse financial consequences ranging from severe loss of revenue to the inability to reduce fixed costs, crystalizing massive losses in 2020. In a UC Berkeley discussion forum, some economists forecast that as much as one-third of the U.S. economy may be shut down temporarily and that the real unemployment rate may exceed 25%. In addition to multiple rounds of quantitative easing and other measures by the U.S. Federal Reserve Bank, the federal government has already enacted several economic relief packages to inject liquidity into the economy, provide financial relief to businesses and individuals, and partially fund the unprecedented acute and long-term healthcare needs.
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