FOR PRINT FILE AND PDF Dear Clients and Friends: Year-end tax planning in 2019 remains as complicated as ever. Notably, we are still coping with the massive changes included in the biggest tax law in decades—the Tax Cuts and Jobs Act (TCJA) of 2017—and pinpointing the optimal strategies. This monumental tax legislation includes a myriad [...]
Many small business owners are still sorting through the massive changes included in the Tax Cuts and Jobs Act (TCJA). Generally, as opposed to the provisions for individuals, the rules affecting businesses are permanent in nature. Keeping that in mind, following are six year-end planning strategies to consider in 2019. Maximize Section 179 deductions. The [...]
The Tax Cuts and Jobs Act (TCJA) created some new tax breaks for businesses while taking certain others away. But the TCJA did not touch the research credit for qualified expenses. What’s more, under another recent law, the Protecting Americans from Tax Hikes (PATH) Act, the benefits have been enhanced. Background: The research credit, also [...]
Recently released IRS form 8995 instructions indicate that taxpayers filing business returns must reduce qualified business income by charitable deductions. A reduction in qualified business income reduces the potential qualified business income deduction. Although this provision is not in the Section 199A regulations, the reduction in qualified business income can be avoided by making [...]
Do you need to make repairs to your business premises or equipment? It can make a big tax difference if the work is characterized as a “repair” or an “improvement.” In brief, a repair is currently deductible by your business, while the cost of an improvement must be written off over time. The IRS and [...]
If you need to purchase equipment for your small business this year, you may be in for a treat. Generally, you can qualify for sizeable current deductions, instead of recouping the costs through depreciation deductions over an extended period of time. Furthermore, the Tax Cuts and Jobs Act (TCJA) has enhanced these tax benefits for [...]
Dear Clients and Friends (and Blog Readers!): With the first tax season under the Tax Cuts and Jobs Act (TCJA) behind us, we have a better understanding of the practical applications on the tax law changes. As expected, the law changes had a profound impact on many taxpayers and created new planning opportunities. There [...]
As you are probably aware if you read this blog consistently, we think Opportunity Zones have great potential for taxpayers/investors. In fact, since last fall, many of the uncertainties around Opportunity Zones have been cleared up through IRS regulations. Most people are not expecting any more official IRS guidance release so the rules of [...]
In lieu of deducting actual expenses, the IRS permits qualified taxpayers to deduct a flat rate based on miles traveled, plus related tolls and parking fees. These standard mileage rates are updated annually. For 2019, the rates are: 58 cents per mile driven for business driving (up 3.5 cents from 2018); 20 cents per mile [...]
What’s the biggest tax deduction on your 2018 return? For many itemizers, it is the write-off for charitable donations on Schedule A. But these deductions are not automatic if you do not have the proper records to back up your claims. Here are several important reminders for this year’s tax filing season. Monetary contributions: Deductions [...]