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The IRS on Wednesday provided a safe-harbor method to determine depreciation deductions for passenger automobiles that qualify for the 100% additional first-year depreciation deduction and that are subject to the depreciation limitations for passenger automobiles under Sec. 280F (Rev. Proc. 2019-13). The law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, permits …
Continue reading Bonus depreciation safe-harbor rules for vehicles issued
For small business, filing taxes can be a big undertaking. Here are tips for staying ahead of deadlines with a proactive approach. As most of the country slogs through short days and cold snaps, it can be difficult to feel motivated enough to be proactive. And while the April 15 tax deadline still looms off …
Continue reading Accounting Tasks Every Small Business Should Do in January
The IRS finalized regulations on Wednesday on the Sec. 965 transition tax, which was added to the Code by the law known as the Tax Cuts and Jobs Act, P.L. 115-97. Sec. 965 applies to the last tax year of a deferred foreign income corporation (DFIC) that begins before Jan. 1, 2018. The Subpart F …
Continue reading Final regulations govern Sec. 965 transition tax
A new sales tax rule is being enacted in over half the states in the nation. This brief guide explains the basics of economic nexus laws, provides resources to help keep your company compliant and considers how the law may benefit local businesses. Just when you thought business taxes couldn’t get more complicated, an increasing …
Continue reading New Sales Tax Rules Affect Certain Small Businesses Across the U.S.
The optional standard mileage rates for business use of a vehicle will increase significantly in 2019, after increasing slightly last year, the IRS announced Friday (Notice 2019-2). For business use of a car, van, pickup truck, or panel truck, the rate for 2019 will be 58 cents per mile up from 54.5 cents per mile …
According to IRS Notice 2018-61, Treasury and the IRS intend to issue regulations providing clarification of the effect of newly enacted Sec. 67(g) on the ability of trusts and estates to deduct certain expenses. Sec. 67(g), which was enacted by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, suspends miscellaneous …
Continue reading Clarification of itemized deductions for trusts and estates
The significant reduction in the corporate tax rate (from 35% to 21%) brought about by the law known as the Tax Cuts and Jobs Act of 2017 (TCJA), P.L. 115-97, has many S corporations considering whether to convert to a C corporation to take advantage of the lower rate. Before electing to make the change, …
The IRS issued proposed regulations providing guidance on Sec. 168(k), which was amended by P.L. 115-97, known as the Tax Cuts and Jobs Act (TCJA), to increase the allowable first-year depreciation deduction for qualified property from 50% to 100%. The TCJA extended and modified bonus depreciation, allowing businesses to immediately deduct 100% of the cost …
Continue reading IRS issues proposed regs. on 100% bonus depreciation
The IRS on Monday issued final regulations (T.D. 9843) that amend the uniform capitalization (UNICAP) rules under Sec. 263A. The IRS also updated the procedures by which taxpayers can get automatic consent to change their methods of accounting to reflect the new regulations (Rev. Proc. 2018-56). UNICAP regulations The IRS says the rules issued in …
Continue reading UNICAP rules on negative adjustments finalized
The more things change the more they stay the same. This is especially true when it comes to reviewing your tax situation. Mark your calendar to review these essential items each year to ensure you are not missing something that could cause tax trouble when you file your tax return: 1. Required minimum distributions If …
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