By: Sharon Kreider

Is my rental property a qualified trade or business? IRS provides a few answers

The 20% QBI deduction is only allowed for qualified trade or business income. The bothersome question in the whole year since §199A was enacted was if and when a rental activity is a trade or business. In Notice 2019-7, the IRS proposes a revenue procedure (now designated as Rev. Proc. 2019-xx) that will provide a safe harbor for determining if a rental activity is a trade or business for purposes of the §199A deduction.

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By: Sharon Kreider

2019 Tax Season Staff Meeting Agenda

A staff meeting to begin another tax season is a good idea, whether your staff is just your beleaguered spouse, one admin, or includes partners, preparers, reviewers and bookkeepers. Changes occur and communicating them to all workers who deal with tax returns is crucial. If you have ever discovered that your most valuable person didn’t know what you thought was a simple “everyone-knows- that” change, and had errors because of that assumption, then you know the necessity to start the tax season right with staff. Here are a few ideas for your staff meeting agenda.

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By: Sharon Kreider

Client Letter for Year End Planning

I am writing to briefly review some of the main points in the new tax law, in an effort to do year‑end planning to minimize your 2018 taxes. In the past many clients did not benefit from a year end review as things were set when we prepared the previous year’s tax return and the Alternative Minimum Tax nullified many of the strategies that could reduce tax for many.

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By: Sharon Kreider

Stay Ahead of the Game

There are more than 100 changes in the Tax Cuts and Jobs Act taking affect for the 2018 tax return. When talking to your clients before year-end, here are a few items to consider in that discussion.

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By: Sharon Kreider

Dividing Business Functions to Avoid the Specified Services Limitations for the QBI Deduction

An individual with “specified service” income cannot benefit from the new Qualified Business Income (QBI) deduction if the individual has taxable income in excess of a threshold. Therefore, those in a specified service trade or business who have taxable income above $157,500 ($315,000 MFJ) are subject to a phase-out of their QBI deduction, and at taxable income of $207,500 ($415,000 MFJ), they cannot claim any QBI deduction.

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By: Sharon Kreider

Specified Services and the QBI Deduction

An individual with “specified service” income cannot benefit from the new Qualified Business Income (QBI) deduction if the individual has taxable income in excess of a threshold. Therefore, those in a specified service trade or business who have taxable income above $157,500 ($315,000 MFJ) are subject to a phase-out of their QBI deduction and at taxable income of $207,500 ($415,000 MFJ), they cannot claim any QBI deduction.

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By: Sharon Kreider

IRS Releases Draft of 2019 Form W-4

IRS Releases Draft of 2019 Form W-4

The draft Form W-4 is only two pages (the 2018 Form W-4 is four pages.) The "Personal Allowances Worksheet," the "Deductions, Adjustments and Additional Income Worksheet," and the "Two-Earners/Multiple Jobs Worksheet" have all been eliminated.

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By: Sharon Kreider

2018 Tax Postcard

2018 Tax Postcard

The IRS is about to officially release a draft of a postcard Form 1040. The smaller size is meant to convey that taxes are simpler after the enactment of the Tax Cut and Jobs Act.

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