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Shareholders of closely held C corporations commonly lease real estate, equipment, and other property to the corporate entity, either directly or through a separate partnership, a limited liability company, or an S corporation. Advantages that can motivate these rental arrangements include the following: Avoiding payroll taxes: Rental income from real estate is not subject to …
Much uncertainty exists in health care due to the constantly evolving health care environment. Physicians are dealing with vast amounts of new regulations and costs because of the Patient Protection and Affordable Care Act, P.L. 111-148, and other recent legislation. Providers are looking for ways to reduce their tax burden. Many are looking at their …
The revised limitation on interest expense brought about by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, may affect a broader base of businesses than originally anticipated by many. The newly minted Sec. 163(j) limits the deduction for business interest to the sum of business interest income and 30% of …
Continue reading Sec. 163(j) places renewed importance on tax shelter status
The IRS proposed new rules under the global intangible low-taxed income (GILTI) provision (Sec. 951A) added by P.L. 115-97, the law known as the Tax Cuts and Jobs Act (REG-104390-18). Sec. 951A requires U.S. shareholders of controlled foreign corporations (CFCs) to include in their gross income their GILTI income for that tax year (the inclusion …
Continue reading IRS issues proposed regs. for GILTI inclusions
It's important for business owners to understand the risks behind signing personally on a business loan or line of credit. Most lenders require that small businesses sign personally. If the business defaults the debt, it will not only hurt their business but also their personal finances and credit. The process of applying for a loan …
Continue reading The Risks Associated With a Personal Guarantee
As a small business owner, perhaps you've been wanting to start a retirement plan for some time now and just don't know where to start. To help you discover which retirement plan is best for you, I put together a list of my favorites. They are easy to set up and cost effective to maintain. …
Continue reading 4 Best Retirement Plans for Small Business Owners
The IRS on Tuesday announced that it plans to issue regulations providing that the reduction in the personal exemption amount to zero for tax years 2018 through 2025 will not be taken into account in determining whether a person is a qualifying relative under Sec. 152(d)(1)(B) (Notice 2018-70). Accordingly, in defining a qualifying relative for …
Continue reading Deemed personal exemption amount introduced for various tax benefits
Under proposed regulations issued by the IRS on Thursday, transfers to a state agency or charitable organization in lieu of paying state and local taxes would be deductible as a charitable contribution only to the extent that the taxpayer making the donation did not receive a quid pro quo (REG-112176-18). Contributions that result in a …
Continue reading Proposed rules would curb avoidance of SALT deduction limit
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