Your Guide to State, Local, Federal, Estate + International Taxation

Are your temporary job expenses deductible?

Your employee expenses for job assignments away from home are miscellaneous deductions. Sadly, these are no longer deductible starting in 2018 and extending to 2025 under the new rules established by the Tax Cuts and Jobs Act (TCJA). If your employer reimburses your temporary job expenses, your employer can take a deduction for the reimbursement, …

Keep Reading

Tax reform comparison for businesses

The IRS recently released a handy tax reform comparison for businesses. The comparison is broken down by various sections such as deductions, depreciation, expensing, tax credits and other provisions. There are two columns that show the tax treatment under prior law and what has changed under TCJA. This side-by-side comparison can help you understand the …

Keep Reading

Backup withholding changes under the new tax law

Before we get into the details of what has changed with the new tax law, let’s first define what backup withholding is. In general, backup withholding is a tax withholding required on income that usually does not require withholding. Backup withholding is usually triggered when a taxpayer fails to supply the correct taxpayer identification number …

Keep Reading

IRS Bank Secrecy Act has little impact on tax compliance

Many of you may know the BSA as the Boy Scouts of America. It’s where I spent many years as Scout Leader for my boys’ Cub Scout Pack and Boy Scout Troop. But there’s another BSA – the IRS Bank Secrecy Act. This BSA started in 1970 when it was originally known as the Currency …

Keep Reading

U.S. Savings Bonds interest income taxability

There are several forms of U.S. Savings Bonds and we will delve into the three different types as well as savings bonds interest income taxability. Series EE bonds These bonds reach maturity (double in value) in 20 years from issuance but continue to earn interest for another 10 years for a total of 30 years …

Keep Reading

Mileage rates: the good news and the bad news

President Trump’s signature on December 22, 2017 enacted the Tax Cuts and Jobs Act (TCJA) as of January 1, 2018. As you get ready to file your 2018 tax return, the many changes in the tax law may have you scrambling to stay on top of the latest rules. Mileage rates were not exempt from …

Keep Reading

Your amended tax return: what’s the status?

If you have been perusing the instructions for the amended individual tax return (Form 1040X), you have probably seen something quite exciting. What, you say?! You have not looked at the instructions for Form 1040X? Here is a link to these instructions. Anyway, the excitement. Beginning way back in March 2013, you could track the …

Keep Reading

What happens if my estate and gift tax exclusion reverts?

If you have been following all the changes in the estate and gift tax exclusion amount over the past several years, you probably know that you can now give away – during your life, or on your death – $10,000,000 (adjusted for inflation) estate and gift tax free. The actual amount in 2019 is $11,400,000, …

Keep Reading

California noncomformity with the Tax Cuts and Jobs Act

California tax law has always differed from federal tax law, but with the enactment of The Tax Cuts and Jobs Act (TCJA), nonconformity is an even bigger issue. California has chosen not to follow the majority of the tax changes put into place by TCJA. Differences between new federal law and California law that will …

Keep Reading

AZ Electronic TPT filing and paying phase two

Arizona legislation House Bill 2280 (HB 2280) set the path for the Arizona Department of Revenue (ADOR) to require electronic filing and payments of transaction privilege tax (TPT) for businesses. This requirement is being phased in annually for various size businesses; the first wave was ushered in with a January 2018 electronic filing/paying requirement for …

Keep Reading