The period between filing last year’s tax return and this year’s return is the perfect time to organize your tax records. Granted, it may not be something most taxpayers relish doing. But tackling this now can save headaches later. This article explains the IRS guidelines for tax-record retention, as well as some important exceptions to consider.
Section 199A Deduction and Its Impact on Real Property Ownership
One of the most significant changes in The Tax Cuts and Jobs Act effecting income property owners is the newly created 199A deduction. Designed to reduce the effective tax rate on business taxable income, under the new Code Section 199A, there is a 20% deduction for qualified business income (QBI) from a pass-through entity (Partnerships & S-Corps). However, without proper planning, limitations may apply.
IRS Waives Estimated Tax Penalty for Many 2018 Filers
The IRS announced that it is “generally waiving the penalty for any taxpayer who timely paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two.” Usually tax payers who pay estimated tax, must pay at least 90 percent to avoid a penalty.
IRS Issues Warning About "Tax Transcripts" Email Scam
The IRS issued a warning about the latest tax scam. Recently, there has been a surge of fraudulent emails impersonating the IRS and using tax transcripts as bait to entice users to open documents containing malware. The scam involves a well-known malware, known as Emotet. Especially problematic for businesses, this malware can spread throughout the networks and potentially take months to successfully remove.
Are You Aware of the Global Intangible Low-taxed Income (“GILTI”) Requirements?
Did you know that starting in 2018, US shareholders face a new US tax on the annual active earnings of certain foreign corporations, whether or not the earnings are distributed? This is known as the tax on Global Intangible Low-taxed Income (“GILTI”), which was enacted as part of the Tax Cuts & Jobs Act of 2017. This article provides an overview and captures what actions should be taken before year end.
The Tax Cuts and Jobs Act, (The Act), has brought with it many changes that impact all taxpayers. One of the provisions of The Act that may impact many Americans is the new legislation that repealed the alimony deduction after 12/31/2018. Most people ...
Patient investors generally have prospered over the long term. Nevertheless, there are many reasons for selling stocks. Knowing the basics can help improve your tax position. Selling shares held in a taxable account will trigger taxable capital gains ...
It is now the middle of February, 2019 and we have already been exposed to a great many tax returns that are subject to the new IRS Partnership audit rules, which became effective on January 1, 2018. Unfortunately, we have seen very few Partnerships ...