Did you know that the IRS has issued a draft Partnership K-1 with extensive changes? Are you aware that the IRS has proposed new regulations for the limitation on the deduction of business interest? It may be time to contact your tax professional at Fuoco Group so that you have no surprises when your 2019 taxes come due!
If you were eligible for the QBI 20% deduction for pass-through entities last year, do you know if you will be under or over the threshold for this year? There may still be time to impact your wage and equipment numbers in the calculations. If you had qualified business activities in 2018 with losses, those losses carry forward and reduce future qualified business income.
Got Bitcoin? 1040 Schedule #1 now asks the taxpayer to check a box indicating “…did you receive, sell, send, exchange or otherwise acquire any financial interest in virtual currency?” Taxpayers should review their transactions using cryptocurrencies and discuss with our experts the income tax consequences to transactions using cryptocurrencies.
If you made a charitable contribution to a state organization and received a state tax credit in exchange, reduce the value of the charitable contribution by the value of the state tax credit received, and only claim the net amount for a deduction on the Form 1040.
Are you a Senior? The new Form 1040-SR allows income from wages, salary, etc., but also Social Security and retirement income, so you will no longer be frozen out of the Form 1040-EZ.
Note the medical expense deduction threshold, which was reduced to 7.5% for 2017 and 2018, has reverted back to a 10% threshold for 2019.
Effective January 1, 2019, alimony was no longer deductible to the payer and no longer taxable to the payee for divorce or separation instruments executed on or after that date. Instruments executed prior to 2019, but modified in 2019 or later, may choose in the modification to be governed by the old or new rules.
This 2019 holiday season is the first for our online retailer clients since states broadly adopted new sales tax laws in the wake of Wayfair — compliance is critical. Otherwise online retailers will be exposed to possible interest and penalties in the 42 states require remote sellers of goods and services to register and begin collecting tax.
Last year many folks had a surprise balance due or smaller-than-anticipated refund because they didn’t take steps to correct their withholding. Make sure you address this issue for the year ahead. The new 2020 brackets and inflation adjusted deduction amounts have just been published – see our article here: Breaking-news-about-2020-tax-brackets-and-rates.
Contact Us: Got married or divorced? Started a business or started a family? It’s important to talk to your Fuoco tax professional about life changes and life events. It is already December but there are still opportunities to limit potential exposure to tax liability if you act now. Contact our New York or Florida tax experts toll free at 855-534-2727.
