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

Your interest expense deduction rules are changing

There are three new rules that may affect your interest expense deductions for the 2018 tax filing year. These new rules generally apply to the dates of January 1, 2018 through December 31, 2025. The new rules affect mortgage interest expense, investment interest expense and business interest expense. Mortgage interest expense Under the old rules, …

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New AZ mini COBRA insurance law takes effect

With a new year comes new laws and 2019 is no exception. Small Arizona employers (1 to 20 employees) are now subject to a new law that requires “COBRA” coverage be offered to their qualifying employees. COBRA, of course, refers to the landmark federal law passed in 1986 that requires most group health plans to …

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Final Section 199A regulations released

In the waning hours of January 18, 2019, the Treasury Department and IRS released final regulations related to Section 199A of the code, more commonly known as the 20% deduction of qualified business income. Astute Henry+Horne blog readers and newsletter subscribers will recall several articles on this specific topic – one of the largest pieces …

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Ode to employees impacted by government shutdown

As tax season approaches for us CPAs, I can’t help but think about the long hours and exhausting times ahead. The last year spent learning everything we can regarding the new tax law, coupled with the typical rigors of non-tax reform updates that are customary in our profession will all be put to the test …

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IRS offers penalty relief for under withholding

As you begin to assemble your information for your 2018 tax filing, you may be feeling a little apprehensive – as are many other taxpayers. Not only are you concerned about how the new tax law will impact your 2018 return – there have been numerous reports warning us that the withholding tables may have …

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Government shutdown: IRS recalls workers for tax season

Worried about not getting a refund due to the government shutdown? According to the IRS, you shouldn’t be. The IRS is recalling (without pay) about 46,000 of its employees that have been furloughed due to the government shutdown to handle tax returns and pay out refunds. Up until this point, only about 10,000 IRS employees …

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Can I deduct business trip expenses for my spouse?

I’m sure the question has come up many times for a sole proprietor or business owner. Are the travel expenses of your spouse deductible if he/she joins you on a business trip? Well, the answer is not a simple “yes” or “no” without asking further questions because the IRS rules are quite restrictive. Question 1: …

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Classifying workers: employee or contractor?

Every business with employees and independent contractors should periodically review the status of workers to see if they’re properly classifying workers. Employees must have federal income and Social Security taxes withheld. Matching Social Security taxes and federal unemployment taxes are paid by the employer on employee wages. Employees are also eligible for fringe benefits and …

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Arizona tax reform conformity, ADOR issues announcement

On January 10, 2019, the Arizona Department of Revenue issued a news announcement about tax reform that said . . . a whole bunch of nothing. This is not the fault of the Arizona Department of Revenue (ADOR) – they can only do what the legislature gives them information to do. And so far, it …

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Can you carry over your charitable contributions?

Do you make charitable contributions because you get a tax deduction, or do you make them because you believe in the mission of the nonprofit organization? Or is the real answer somewhere in between those two? Regardless of your answer, there may a time when your charitable contributions made in a tax year exceed the …

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