IRS Issues Extensive Guidance to Help Clarify Calculation of the Section 199A Deduction
In January, the IRS issued eagerly anticipated guidance on the qualified business income (QBI) deduction under Code Sec. 199A in final regulations, proposed regulations, and Rev. Proc. 2019-11. Code Sec.…
Bunching Deductions into 2019
As you may know, TCJA significantly increased the standard deduction for all taxpayers. This means that many individuals who previously received a tax benefit by itemizing deductions no longer do,…
Medical Expenses and Health Savings Accounts
For 2019, your medical expenses are only deductible as an itemized deduction to the extent they exceed 10 percent of your adjusted gross income. Depending on what your taxable income…
Mortgage Interest Deduction
If you sold your principal residence during the year and acquired a new principal residence, the deduction for any interest on your acquisition indebtedness (i.e., mortgage) could be limited. The…
Home Office Expenses
When the TCJA eliminated the miscellaneous itemized expense deduction, it eliminated the ability of employees to deduct home office expenses. However, taxpayers with their own business can still file a…
Charitable Contribution Deductions
As a result of the increase in the standard deduction, some taxpayers are no longer getting a benefit from itemizing their deductions, such as charitable contributions, as they once were.…
Retirement Planning
By investing in a qualified retirement plan you'll not only receive a current tax deduction, thereby reducing current year income tax, but you can sock away money for your retirement…
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…