IRS Proposes New Regulation on Qualified Business Income
The Tax Cuts and Jobs Act, has brought with it many changes that impact business owners. One significant change created by the Act is the new 199A qualified business income (QBI) deduction. QBI includes domestic income from a trade or business and most real estate rental activities. Employee wages, capital gain, interest dividend income, and guaranteed payments to partners are excluded. The idea behind creating the QBI deduction was to reduce the taxable income of qualifying companies.
Moving Your Business to a Low-Tax State
Beginning with your 2018 tax return, if you itemize deductions, you can count no more than $10,000 a year of State and Local Tax (SALT) deductions for income and property tax on a single or joint tax return (you can choose to include sales tax instead of income tax). This article explains the effect of the new SALT cap and how moving your business to a low-tax state may be appealing.
Vote for Your Favorite South FL Businesses
The Daily Business Review has launched their 2018 “BEST OF Survey” to find out who are the top vendors serving SFL’s legal, real estate, and banking industries. MBAF has been nominated in four categories and we appreciate your support!
MBAF Named a Best Accounting Firm to Work For by Accounting Today
MBAF was recently named one of Accounting Today’s 2018 Best Accounting Firms to Work for. This is the second consecutive year MBAF has received this accolade for its employee-driven environment. “At MBAF, we are always working to create a positive environment for our employees and we encourage their professional growth, because they are the foundation and future of this firm.”
Tax Deferral Via Investing in Qualified Opportunity Fund
One of the perhaps lesser known provisions of the Tax Cuts and Jobs Act of 2017, which could be very beneficial to real estate investors and high net worth individuals, was the establishment of Qualified Opportunity Zones. Under the new law, investment in such zones could provide significant tax deferral opportunities.
Reminder: Millions of ITINs Expire at the End of 2018
Certain individuals with a United States income tax return filing obligation are required to apply for an Individual Taxpayer Identification Number (ITIN). ITINs are obtained and used in circumstances where a person, or his or her dependent spouse or children, may not be eligible for a social security number, but are still required to file income tax returns.
Required Estate Tax Reporting for Executors is in Full Effect
The substantial increases to the gift and estate tax exemptions under the Tax Cuts and Jobs Act are getting the most attention these days. However, a tax law change enacted in 2015 which affects the reporting of a Step Up In tax basis in inherited assets also warrants your attention.
The BDIT: A Trust with a Twist
The beneficiary defective inheritor’s trust (BDIT) allows you to enjoy the benefits of a traditional trust without giving up control over your property. BDITs can hold a variety of assets, but they’re particularly effective for assets that have significant appreciation potential or that may be entitled to substantial valuation discounts.