Since TCJA passed last December, we have heard from a multitude of professionals with varying levels of concern regarding the continued existence of the food and beverage deduction in light of the fate of entertainment expenses. Well, Notice 2018-76, issued October 3, 2018, clarifies that taxpayers generally may continue to deduct 50% of the food […]
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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 […]
FASB Issues Long-awaited Lease Simplification Update
With the effective date of Topic 842, Leases, right around the corner, the FASB recently issued two new ASUs that update the lease accounting guidance originally issued in 2016. Both of these updates are effective at the same time as Topic 842. In July, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, […]
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 2018 Yellow Book Has Been Issued!
The much anticipated revision to the Yellow Book has arrived and is available at www.gao.gov. Some examples of changes contained in the 2018 Yellow Book include: The formatting of the new Yellow Book clearly differentiates the requirements from the application guidance. The new Yellow Book adds clarification in the area of independence particularly when auditors […]
FASB Standard Setting Heats Up as Summer Approaches
After being particularly slow with its standard setting in early 2018, the Financial Accounting Standards Board (FASB) has significantly picked up its pace in issuing new accounting guidance over the past few weeks. Also, in looking at the FASB’s technical agenda, there are several more Accounting Standards Updates (ASU) which the FASB plans to issue […]
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 & […]