On July 25, 2019, the announcement of Rev. Proc. 2019-32 provided welcomed relief for Form 1065 filers. Under Section 6031(b), partnerships under the centralized audit regime are prohibited from amending, after the return’s due date, K-1 information required to be provided to partners. For 2018 returns, the K-1s show for the first time Line 20 […]
Displaying: Tax Reform
President Signs Taxpayer First Act of 2019
The Taxpayer First Act of 2019 was signed into law on July 1, 2019. The Act contains numerous provisions largely dealing with customer service to taxpayers and IRS organization. As such, there is little for professionals to digest in terms of substantive planning or practice. Two points, though, are noteworthy. The Act established the IRS […]
Safe Harbor for SALT Credit
IRS issued final regs (T.D. 9864) reiterating if a taxpayer receives or expects to receive a state or local tax deduction exceeding the amount of the payment or fair market value of the property, the federal charitable contribution deduction faces mandatory reduction. The final regs largely mirror the proposed regs of August 2018 with little […]
5 Lessons Learned From the 2018 Tax Season
Updated October 15, 2019 Now that the extended deadlines have passed for 2018 returns, we can take a moment to reflect on the lessons learned throughout a challenging year. Below we’ve put together five major take-aways we have come across to aid in planning for the 2019 tax year and beyond. To this end, please […]
Final Section 199A IRS Regulations Propose Safe Harbor for Rental Real Estate
As you probably are aware, final regulations were issued January 18, 2019 implementing the new Qualified Business Income (QBI) deduction of §199A. In response to arguably the most requested clarification from tax professionals, Notice 2019-07 separately issued a proposed revenue procedure containing a safe harbor under which a rental real estate enterprise will be treated […]
IRS Basically Shuts Down SALT Deduction Workarounds
In Proposed Regs 112176-18 issued August 23, 2018, IRS put a major damper on efforts to skirt the TCJA’s state and local tax deduction cap. I have found in talking to various professionals that these so-called SALT deduction workarounds are not very well understood in practice or effect. So, let’s start with a basic understanding […]
Get Your Long-Awaited Guidance on §199A Here
The IRS issued proposed regulations (107892-18) on August 8, 2018 regarding the passthrough deduction of §199A. Excepting the new season of Orange Is the New Black, nothing else has garnered as much anticipation this Summer as the arrival of these regs. Having read all 184 pages, I can tell you there is a lot of […]
Still No Bonus Depreciation for Qualified Improvement Property
Much has been written about Qualified Improvement Property (QIP) lately. QIP is defined as any improvement to an interior portion of a building that is nonresidential real property if such improvement is placed in service after the date such building was first placed in service. QIP does not include any improvement for which the expenditure […]
House Republicans Release Phase 2 of Tax Plan
On July 24, 2018, House Republicans released their outline of Tax Reform 2.0. Interestingly, the outline commits to improving the tax code every year and likens the process to upgrading apps on a phone. Three main points are discussed. Making the individual and small business tax cuts of the Tax Cuts & Jobs Act permanent […]
The Tax Cuts & Jobs Act Impact on Section 529 Plans and ABLE Plans
Impact on 529 Plans The Tax Cuts & Jobs Act treats up to $10,000 a year for elementary and high school expenses per student as qualified under the Section 529 plan rules. Previously, Section 529 money could only be used for post-secondary education – think college and graduate schools. But now, the Tax Cuts & […]