Tax reform impacts employee achievement awards rules

The Tax Cuts and Jobs Act clarified the rules about the taxability of employee achievement awards as to what can be excluded from your employee’s income. The good news is that all gifts and awards to employees are deductible expenses for employers. Unfortunately, most of these gifts and awards are now taxable to employees. The …

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Section 163(j): trap for the unwary!

Although the Qualified Business Income deduction (QBI or “pass through deduction”) receives all the favorable buzz with the new tax law, we want to make sure that you are aware of another provision established by tax reform – Section 163(j) – which is alarming to your tax-geeky CPA. First off, does this sound familiar? You …

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New overtime threshold proposed by Department of Labor

In case you missed it, the U.S. Department of Labor (DOL) announced on March 7, 2019 its proposal to raise the minimum salary for employees to qualify for Fair Labor Standards Act white-collar exemptions from $23,660 per year to $35,308 per year. Employees making less than this amount would automatically be eligible for overtime pay …

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Tax reform: blended corporate tax rate

By now, we have all heard of the new Tax Cuts and Jobs Act (TCJA) signed by President Trump in December 2017 to take effect on January 1, 2018. I am sure you heard that individuals and corporations will get tax cuts through reduced tax rates, among other deductions available. In this blog, I will …

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Accounting for goodwill after acquisition

Over the years, the subsequent accounting for goodwill has been an area that has seen a lot of changes and our blog has tried to keep you up to date with all of these. Where do we stand now? First off, goodwill mainly arises from a business combination where the purchase price exceeds the fair …

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Lizzie Borden: simultaneous death and slayer statutes

Lizzie Borden took an axe and gave her mother forty whacks. When she saw what she had done, she gave her father forty-one. Andrew Jackson Borden and Abby Durfee Gray were murdered on August 4, 1892. Abby died first at approximately 9:30 a.m., after being struck 18-19 times with a hatchet or sharp instrument. Approximately …

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Arizona county taxes on commercial leases

So, you lease commercial property to another party in Arizona and you thought it was enough to pay income tax to the IRS and Arizona every year. Well, not so fast … you are also responsible for paying county and city transaction privilege taxes (TPT) on the commercial lease. How do I do that, you …

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Proposed regulations for foreign tax credits

The Tax Cuts and Jobs Act (TCJA) changed many facets in the tax world, including the international tax arena. With the changes to how foreign activities are taxed through the onset of global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII), claiming the foreign tax credit became more complex. Taxpayers trying to navigate through …

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Valuation case update: Estate of Streightoff vs Commissioner

In the case of Estate of Streightoff vs Commissioner, the IRS argued that the interest to be valued in a family limited partnership (FLP) was a limited partner interest, not an assignee interest. The Tax Court agreed with the IRS noting characteristics of the property transferred and admission requirements of the FLP. Case background Streightoff …

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Fiduciary review of investments

Fiduciary responsibilities are often overlooked and underappreciated, and in-house executives and employees at your company tasked to watch over the company retirement plan may lack the qualifications to fully perform in a fiduciary role(s). That’s why when it comes to your obligations as a trustee, it’s a good idea to discuss bringing on fiduciary support …

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