Are medical expenses taking a bite out of your budget? This may be your last chance for deducting medical and dental expenses because the threshold for qualifying for deductions is set to revert to its higher level after 2020. For 2020, the IRS allows all taxpayers to deduct the total qualified unreimbursed medical care expenses
Finally IRS Issues Final Rules on Meal and Entertainment Deduction
The IRS issued final regulations implementing provisions of the TCJA which disallow a business deduction for most entertainment expenses. The IRS clarified the treatment of business deductions for food and beverages that remain deductible, generally limited to 50% of qualifying expenditures, and how taxpayers may distinguish those expenditures from entertainment. ENTERTAINMENT The final regulations generally kept
Early Peek at 2021 Tax Rates
Curious about what your tax bill may look like next year? For starters, the inflation adjustments may seem smaller, only about 1% for the threshold dollar amounts for 2021 tax rate brackets. Here are the projected 2021 Tax Rates, Brackets, and Standard Deductions for the tax year beginning January 1, 2021. Tax Brackets The tax
IRS Unveils Dirty Dozen List Of Tax Scams For 2020
Tax scams tend to rise during tax season or during times of crisis, and scam artists are using pandemic to try stealing money and information from honest taxpayers. The Dirty Dozen list helps to raise awareness about common scams that fraudsters use to target people. Here are this year’s “Dirty Dozen” scams: 1. Phishing: Be alert to potential fake
Invalidation of Affordable Care Act Could Impact the NIIT
The US Supreme Court has agreed to hear the Affordable Care Act (ACA) case in which several states are arguing that the individual mandate in the ACA (as revised by Congress in late 2017) is unconstitutional. The Supreme Court will hear the case this fall and is expected to render a decision in the first
Guidance For Tax Exempts With Unrelated Business Income
The IRS and the Treasury issued proposed regulations for tax-exempt organizations who are subject to the Unrelated Business Income Tax provisions of the TCJA. UBTI applies to any activities a nonprofit engages in that aren’t related to the tax-exempt purpose of the organization. We now have more clarity on how non-profits should calculate taxes owed
If You Have NOLs We Finally Have Guidance
The CARES Act made several important changes to the treatment of NOLs. First, for tax years beginning after December 31, 2017 and before January 1, 2021, losses can again be carried back, but now for up to 5 years. A taxpayer can elect to waive the carryback period, however, and instead carry the amounts forward.
Properly Avoid Tax Penalties Or Be Prepared To Pay
They don’t go away, and the IRS will never forget if you owe them $$$. Penalties can easily spiral out of control and add thousands of dollars to your tax burden. Penalties can be the result of many things, so learn how to avoid them – the most common are below: • Individuals Failure to
Small Business Structuring for Tax Efficiency
Remember way back when as you started your business? Like most entrepreneurs, you probably chose to form a sole proprietorship because it’s less paperwork and less costly. But as your business grows you might benefit from the protections provided by a Limited Liability Company (LLC) or C-Corporation. But if you are currently a C-Corp, does
February Is Here And So Is Tax Season
Are you ready? The IRS announced that tax season began on January 27, 2020. The tax agency is now accepting and processing 2019 tax year returns. The deadline to file 2019 individual tax returns and pay any tax owed is Wednesday, April 15, 2020. For sole proprietorships and LLCs taxed as a disregarded entity: File
