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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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 …

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Clarification of deductibility of PPP expenses

The Paycheck Protection Program has been a hot topic for the last few weeks, with restaurants and other small businesses everywhere scrambling to get their slice of over $650 billion in SBA loans. Providing these loan proceeds are used for approved purposes such as payroll costs, employee healthcare benefits, rent, utilities and interest on existing …

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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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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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You lost money but still got a tax bill. Why?

You have an interest in a business that lost money, but when you get your final tax return you are surprised to see you still owe taxes. What happened? Well your business or businesses may have been subject to the passive activity loss rules, with losses being carried forward to future years instead of taking …

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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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Paycheck Protection Program – round two

After the initial $349 billion funding of the Paycheck Protection Program dried up in record time early this month, congress has approved and the president has signed into law a second round of relief that includes an additional $310 billion of funding for the small business lifeline program. Many restaurants applied the first time around …

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