Section 179 Expensing and Bonus Depreciation Deductions
Generally, the two biggest deductions that can reduce a client's taxable income are the Code Sec. 179 expense deduction and the 100 percent bonus depreciation deduction. And, as a result…
Vehicle-Related Deductions and Substantiation Requirements
In an audit involving a business, the IRS is quick to focus on vehicle expense deductions and whether such deductions are adequately substantiated. Thus, practitioners should ensure that the following…
401(k) distribution for first-time home purchase subject to 10% additional tax
The Tax Courts have found that a 401(k) distribution used for a first-time home purchase was subject to a 10% additional tax because the exception to the additional tax for…
Method of Accounting for Taxable Income
There are various methods on how to calculate taxable income for businesses. The two most common methods are called cash basis and accrual basis. The difference between cash and accrual…
QBI Tax Deductions for Real Estate
If all the general conditions are met, the deduction can be claimed for a rental real estate activity - but only if the activity rises to the level of being…
New Business-Related Tax Rules for 2018
The business-related provisions in the TCJA are permanent and generally take effect beginning with 2018 tax years. For businesses, highlights of the new law include: (1) an increase in amounts…
Social Security Benefits to Increase 2.8 Percent in 2019; Maximum Wage Base for OASDI Increases by $4,500
The Social Security Administration (SSA) issued cost-of-living information for the 2019 social security and supplemental security income (SSI) benefits. According to the SSA, such benefits will increase 2.8 percent in…
Wage Limitation of QBI deduction enacted by the Tax Cuts and Jobs Act of 2017
On August 8,2018, the IRS released proposed regulations on Code Sec. 199A, one of the major tax breaks enacted as part of the Tax Cuts and Jobs Act of 2017.…
Qualified Trade of Business Analysis of QBI deduction enacted by the Tax Cuts and Jobs Act of 2017
On August 8,2018, the IRS released proposed regulations on Code Sec. 199A, one of the major tax breaks enacted as part of the Tax Cuts and Jobs Act of 2017.…
Long Awaited Proposed Regulations on the Qualified Business Income Deduction Are Issued
On August 8, 2018, the IRS released proposed regulations on Code Sec. 199A, one of the major tax breaks enacted as part of the Tax Cuts and Jobs Act of…
IRS Removes Donor Disclosure Requirement For Many Tax-Exempt Organizations
In a Revenue Procedure, IRS has removed the requirement that exempt organizations other than Code Sec. 501(c)(3) organizations disclose the names and address of their contributors on their exempt organization…
Private Companies Struggle to Implement Revenue Standard
Representatives from private companies and their auditors told the FASB on June 26, 2018, that it will be a scramble to the finish line for many of them as they…
Vehicle and Unreimbursed Employee Expenses Under the Tax Cuts and Jobs Act
In a Notice and accompanying news release, IRS has provided updated information to taxpayers and employers about changes from the Tax Cuts and Jobs Act (TCJA) affecting vehicle and unreimbursed…
Extension of Time to File Your Tax Return
Need more time to prepare your federal tax return for the year 2017? The due date is April 17, 2018. If you can’t file by the due date of your…
How You Should Handle an IRS CP2000 Notice
Correspondence from the Internal Revenue Service (IRS) can produce a fright in the recipient, but there’s usually no cause for alarm. The most frequent letter sent by the IRS is…
Deduction for Qualified Business Income (QBI)
The Tax Cuts and Jobs Act of 2017 (TCJA), introduced a new tax break for owners of many pass-through businesses. Individuals who are sole proprietors, partners in partnerships, members in…
Overview of Tax Cuts and Job Act (TCJA) Changes Affecting Businesses
The following is a summary of some of the more significant changes under the new tax law that may affect your business. Reduction in Corporate Tax Rate and Dividends Received…
Overview of Tax Cuts and Job Act (TCJA) Changes Affecting Individuals
The following is a brief overview of TCJA's key changes (and non-changes) affecting individuals. Tax Rates and Brackets TCJA provides seven tax brackets, with most rates being two to three…
2017 year end tax planning for individuals
Just as the daylight hours are getting shorter, so is the time for fine tuning any last-minute strategies to lower your 2017 tax bill. Often, the correct steps to take…
2017 year end tax planning for businesses
As the year draws to a close, it is important that we meet to calculate your business's tax liability for 2017 so we can determine if additional actions are needed…