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

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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Health savings accounts as retirement savings

Three words: triple tax free. The contributions are tax deductible, the earnings are not taxed and distributions are tax free if they are used for qualified expenses. This is the main advantage and beauty of Health Savings Accounts (HSAs). While Roth and traditional retirement savings accounts will almost always result in taxable income (now, or …

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Paul Allen’s death and the estate settlement process

Paul Allen, co-founder of Microsoft, passed away on October 15, 2018. He led an amazing life full of accomplishments that would span several blogs. Some noteworthy items include being the sole investor of SpaceShipOne suborbital commercial spacecraft, redeveloping the South Lake Union neighborhood of Seattle, owning the Seattle Seahawks and Portland Trail Blazers and donating …

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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, …

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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 …

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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 …

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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 …

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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 …

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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 …

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