Displaying: tax reform
Courses help accounting pros stay up-to-date with changing tax codes
Latest on Billionaire’s Tax
Well, the Dems intend to partially fund the upcoming legislation with a wealth tax on roughly 750 Americans. The plan, released this morning, calls for the tax to apply to gains every year, instead of only at sale, to a taxpayer with $1B in assets or a taxpayer who earned $100M in income for three […]
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 […]
Home Equity Loan Interest Could Still be Deductible
The Service recently responded to widespread confusion surrounding changes made through the Tax Cuts and Jobs Act by announcing that taxpayers can often still deduct interest on a home equity loan, home equity line of credit or second mortgage, without regard to the label placed on the loan. Tax reform imposed a lower limit of […]
Tax Reform’s Impact on Financial Statements: Are You Ready?
You’ve probably seen the large impacts that many publicly traded entities have announced related to the accounting for the Tax Cuts and Jobs Act. It’s important to remember that tax reform’s impact on financial statements isn’t just a large or publicly traded company issue. All corporations need to record the impact of the change in […]
Bipartisan Budget Act of 2018 Provides Miscellaneous Tax Related Provisions
On February 9, 2018, Congress passed and President Trump signed into law the Bipartisan Budget Act of 2018. The main purpose of the legislation was to fund the government through March 23, 2018, but it also provided a few relevant retroactive tax changes we should note and be aware of for tax year 2017. The […]
Assessing the Impact of the Tax Cuts and Jobs Act on Financial Statements
So the Tax Cuts and Jobs Act (the “Act”) is here. While many are focusing on the impact of individual rate reduction and the impact on their itemized deductions, corporations need to assess the impact of the Tax Cuts and Jobs Act on financial statements–specifically on their deferred tax balances as part of the 2017 […]
Avoiding Costly Mistakes Regarding Choice of Entity Post-Tax Reform
Choice of entity is undoubtedly a discussion for practitioners currently meeting with clients for tax return preparation. Clients are confused as to which structure–C corporation or S corporation–is best suited for their entity after tax reform. The Tax Cuts and Jobs Act lowered the tax rate for C corps to 21%. Moreover, the new §199A […]
The Service Business Disadvantage of the New Section 199A
The tax reform law includes a new Section 199A which creates a deduction for Qualified Business Income (QBI). For tax years 2018 through 2025, an individual Taxpayer may deduct 20% of QBI from a partnership, S corporation, or sole proprietorship. QBI is the net amount of qualified items of income, gain, deduction, and loss with […]