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

Retirement contribution limits increasing in 2019

The IRS recently issued technical guidance relating to changes for pension plans and retirement accounts for tax year 2019. The biggest changes relate to the amounts employees can contribute to various types of retirement plans. The good news for you is that retirement contribution limits are going up. Retirement contribution limits The contribution limit for …

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Social Security benefits increasing in 2019

Social Security benefits are increasing. Social Security and Supplemental Security Income (SSI) recipients are getting a 2.8% payment boost in the coming months, and for the first time ever, you’ll be able to see your new benefit amounts online. Adjustments The cost-of-living-adjustment (COLA) will begin for SSI beneficiaries on December 31, 2018. The COLA for …

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Trade or business of being an employee

Around the middle of August, I headed out of town for a week-long vacation. I had everything wrapped up here in the office and right before I left, the IRS released the much-anticipated proposed regulations on the IRC Section 199A deduction. I know this is not as exciting as reading up on who is going …

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Section 199A: unadjusted basis of qualified property

With the recent changes in tax law through the Tax Cuts and Jobs Act, there have been many questions regarding how these changes will affect taxpayers and businesses. The intent of this blog is to shed some light on the Section 199A deduction, which has confused a fair number of people. Specifically, this blog will …

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Tax reform for business real estate: self rentals

Under the new tax reform passed in late 2017, Internal Revenue Code Section 199A offers a 20% tax deduction to certain businesses that have qualified business income (QBI). Section 199A was enacted to provide a deduction for pass-through entities such as sole proprietors, trusts, estates, partnerships and S Corporations. Proposed regulations have now been released …

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Section 1231 gains and losses and Section 199A

There are many complex and confusing aspects to the rules regarding the new 199A deduction, and the treatment of 1231 gains and losses are no exception. Before we dive into these transactions as related to 199A, let’s begin at the beginning – what’s a 1231 gain or loss, anyway? In general, a Section 1231 asset …

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Guidance on switching from an S Corp to a C Corp

The recent tax law changes have caused many organizations to re-evaluate their entity structure for tax purposes. Even though C Corporations are still subject to double taxation, the new 21% corporate tax rate is favorable enough that it may entice some entities to make a change. For those entities switching from an S Corp to …

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Tax time: gambling winnings and losses

With the current Mega Millions jackpot at $1.6 billion (you read that right, billion with a B) and the Powerball at $620 million, this massive windfall can pop up in your daydreams. However, not considering the tax consequences of these and all other gambling winnings could make those dreams a little less sweet. In addition, …

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Section 199A: Calculating the QBI deduction

The Section 199A deduction, also known as the pass-through deduction, will be able to provide significant tax savings to business owners, that is, if they are able to claim it. The provisions and calculations for the deduction are very complicated. At its simplest, the deduction is 20% of qualified business income, QBI (ordinary business income, …

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QBI deduction: de minimis rules related to SSTBs

With the new proposed regulations for Section 199A regarding the 20% tax deduction for Qualified Business Income (QBI), there have been many concerns and questions, especially since this deduction isn’t available to owners who have more than $315,000 of taxable income and have income from a business that is considered a Specified Service Trade or …

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