By: Sharon Kreider

Final §199A Regs Help Clarify the De Minimis Rule for a Business with SSTB Income

Individuals with taxable income above $157,5001 ($315,000 MFJ) are not entitled to a QBI deduction if their business income is from a specified service trade or business (SSTB). But wonder if your client has two sources of income in her LLC - income from a specified service business and income from a non specified service business. Does the LLC have all specified service income and, thus, the pass-through owner has no QBI deduction? Or can you report two business activities and qualify the LLC owner for some deduction? The IRS has some answers in its recently released 199A regulations.

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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

A Framework for Corporate Tax Reform

Most agree that corporate tax reform is needed to put US corporations on a more equal footing with foreign businesses. Although short on details, leadership from the House, Senate and administration have proposed a Tax Reform Framework to the House Ways and Means Committee, charged with writing the tax reform legislation.

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By: Sharon Kreider

eTax Alert: Employment Tax

eTax Alert: Employment Tax

In a recent decision, the Tax Court provided relief to an employer who misclassified workers as independent contractors. If your client is facing a big employment tax bill, this case may provide help in minimizing the taxes due.

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By: Sharon Kreider

Health Care & Tax Planning: Changes are Coming

Health Care & Tax Planning: Changes are Coming

The House of Representatives passed its version of a repeal and replacement of Obamacare. The American Health Care Act is now in the Senate and it will be a long, arduous effort until the Senate passes a replacement bill. And then, it's on to reconciliation. In other words, it will be several months before the replacement legislation is final. But the expected delay won't stop clients from asking you questions about their health insurance prospects, as well as about tax planning.

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By: Vern Hoven

How Long Are Corporate Extensions?

How Long Are Corporate Extensions?

The IRS has reassured the public that it knows what it is talking about in the 2016 instructions for Form 7004. Apparently, the IRS has been getting inquiries from preparers who are wondering if the instructions for Form 7004 are correct. The instructions indicate that the automatic extension period for corporations is six months, while §6081(b) states that the extension period for corporations is five months. The IRS explained that they were relying upon §6081(a) for the authority to grant six-month extensions, rather than the five-month extension period specified in §6081(b).

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By: Sharon Kreider

2017 Tax Season Staff Meeting Agenda

2017 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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