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 …

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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 …

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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 …

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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 …

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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 …

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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. …

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Update to GASB’s re-examination of the reporting model spring 2020

Many of you are following the progress GASB is making in re-examining the reporting model developed largely from GASB 34. We at Henry+Horne are also keeping a close watch on the changes the board has tentatively decided on, in an effort to be ready for their much-anticipated exposure draft set to be released summer 2020. …

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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. …

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Preparing for an IRS audit

It’s not news the IRS is auditing fewer returns; staff levels are down. Still that is no excuse to “play the audit lottery” and cheat on your taxes. Despite low audit risk, the IRS is still conducting audits. What to do when that dreaded fat envelope shows up from the IRS? This post will outline …

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Beware of paycheck protection program loan scams

It never takes scammers long to show up, and they certainly have not disappointed us when it comes to the Paycheck Protection Program (PPP) loans offered by the U.S. Small Business Administration (SBA). The Federal Trade Commission is warning business owners of scammers attempting to trick you into applying for the wrong program. Don’t miss: …

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