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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Roth IRA conversion: new tax law impact

Recently, I received a call from a client that is required to make minimum distributions (RMDs) from his traditional IRA. He wanted to know if he could satisfy his RMD requirement by converting an amount equal to the RMD to a Roth IRA. A Roth IRA conversion seems like a logical way of satisfying the …

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Section 199A rules for trusts and estates

There has been much to say about the new Section 199A deduction created by the Tax Cuts and Jobs Act (TCJA). It is important to understand that Section 199A provides a deduction of up to 20% of qualified business income (QBI) from a domestic business and applies to all non-corporate taxpayers including trusts and estates. …

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Taxation of market discount bonds clarified

In guidance that became applicable as of January 1, 2018, the IRS has recently clarified that section 451(b) of the new Tax Cuts and Jobs Act (TCJA) does not apply to market discount bonds as some taxpayers and tax practitioners had feared. A market discount bond is fairly common and one in which a taxpayer …

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Tax challenges for 2019 as tax pros help clients

Good tax preparers naturally want to help their clients no matter what challenges they must face in doing so, but this upcoming tax season will be especially daunting as the tax challenges for 2019 just keep piling up. Of course, the big one for this upcoming tax season is the massive tax overhaul also known …

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2019 Tax season concerns, tax reform impact

In case you haven’t heard it enough, there have been a ton of changes in the tax world recently. With the Tax Cuts and Jobs Act (TCJA) of 2018 being the first major tax reform in over 30 years, there is an estimate of about 450 forms, publications and instructions that need to be revised …

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Business meals deduction clarified by IRS

Until recently, a particular paragraph contained within the Tax Cuts and Jobs Act was causing significant heartburn (from a potentially non-deductible meal) for tax preparers, business owners and those within the restaurant industry. Now, the IRS has provided clarification for the business meals deduction. As part of the tax reform bill, entertainment expenses formerly subject …

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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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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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New employer tax credit for paid family, medical leave

The birth or adoption of a son our daughter, caring for a relative with a serious health condition, dealing with your own serious health condition, caring for an injured member of the military or a qualifying exigency (as the Secretary of Labor shall by regulation, determine), can all translate to the loss of time available …

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