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

Exclusion continues: Discharge of qualified principal residence debt

With the introduction of the SECURE Act, the exclusion from gross income for a discharge of qualified principal residence indebtedness has been extended. This is good news for taxpayers who had part or all of their mortgage forgiven by a bank or financial institution. Don’t miss: Welcome back tuition and fees deduction Qualified principal indebtedness …

Keep Reading

IRS update: Itemizing deductions on estates and trusts

When the Tax Cuts and Jobs Act (TCJA) was passed, it prohibited individual taxpayers from claiming miscellaneous itemized deductions for any taxable year beginning after 12/31/2017 and before 01/01/2026. After two years, the IRS has finally issued proposed regulations to clarify how the rules on miscellaneous deductions apply to trusts and estates. Don’t miss: What …

Keep Reading

The history of federal estate tax rates

Even though estate taxes don’t affect many people, they have been a hot topic in the political realm after the Tax Cuts and Jobs Act doubled the lifetime exemption. Don’t miss: Inherited IRAs The estate tax exemption has seen some extremely significant changes since it was enacted in 1916. At this point in time an …

Keep Reading

Don’t lose unused passive activity credits

When a business is formed, it is typically intended that it will generate profit over time. The ownership group may include investors that are not involved in the day-to-day operations. They are described in the tax code as passive participants in the business (passive activity rules). For more detail on the passive activity rules, see …

Keep Reading

What info can the IRS share with your ex?

I recently had some friends go through a divorce. I watched as they tried to sort through their assets and work out the logistics of taking care of their two children. Even after divorce, they were still curious about what the other one was up to, who they were hanging out with, and what type …

Keep Reading

CARES cares about charitable donations

There are some provisions in the CARES Act that are not getting a lot of play right now – probably because it is not immediate money in business or individual’s hands. It can be money for nonprofit organizations, though. Don’t miss: CARES Act clarification for trustee/plan sponsors So while we will see how this comes …

Keep Reading

Ducey extends stay at home order while loosening restrictions on some businesses

Governor Doug Ducey announced amendments today to the state’s Stay Home, Stay Healthy, Stay Connected executive order that placed a stay at home order on residents and curtailed business operations across the state. While the executive order scheduled to expire April 30 has been extended to May 15, the amended order loosens some of the …

Keep Reading

How to return an erroneous refund

Did you receive a refund that did not belong to you or was not the right amount? Whether it was a check or directly deposited, here is what to do. In regard to stimulus payment checks, if you received one in error, the IRS has not set out guidelines on what the repayment methods are. …

Keep Reading

Still waiting on your stimulus payments?

A Stimulus Payment or Economic Impact Payment (EIP) as it is referenced by the IRS was authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Individuals that have a gross income below $75,000 will receive $1,200 (filing joint will receive $2,400) and $500 for each dependent child under the age of 17. …

Keep Reading

Increased credit for small employer pension plan start-up costs

Do you have a small business? Do you like to save money, especially in taxes? Have you considered setting up a retirement plan for you and your employees, but did not want to spend the money and time getting one set up? Then I have news for you! Don’t miss: Small employer automatic enrollment credit …

Keep Reading