Newsletters

IRS PROVIDES PENALTY IRS PROVIDES PENALTY RELIEF FOR UNDERPAYMENT FOR 2018 INDIVIDUAL TAXES

In an Information Release and Notice, IRS has announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. The relief is prompted by changes in the Tax Cuts and Jobs Act (TCJA). This waiver covers taxpayers whose total withholding and estimated tax payments are equal to or greater than 85% of their taxes owed.

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Tax Filing Reminders

February 28th Due date for payers to provide Forms 1099-MISC to recipients and to the IRS, other than Box 7 non-employee compensation due January 31 Forms 1095 are due to the IRS if paper filing (Note: Due date is April 1 if filing electronically) March 4th Due date for providers to send Forms 1095 to employee March 15th 2018 calendar-year S corporation income tax returns are due 2018 calendar-year partnership returns are due Deadline for calendar-year corporations to elect S corporation status for 2019 April 15th Individual income tax returns…

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Three Ways to Deduct the Cost of Business Property

Under current law, taxpayers have a variety of options for deducting some or all of the cost of property used in business rather than depreciating it over a period of years. Here’s a quick overview of three of them: De Minimis Expensing Safe Harbor Taxpayers with “applicable financial statements” (such as a certified audited financial statement) can deduct up to $5,000 per invoice or item for certain tangible property costs to the extent they deduct them for financial reporting or bookkeeping purposes. Those without applicable financial statements can deduct up…

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RENTAL REAL ESTATE, WHEN DOES IT QUALIFY FOR SEC. 199A DEDUCTION?

On January 18, 2019, the IRS issued final regulations on a number of Sec. 199A issues. The final regulations establish a prerequisite whereby a business must first arise to the level of a “Section 162 trade or business” before it is capable of producing income eligible for the 20% deduction. For many active, profit-seeking businesses, this requirement hasn’t been difficult to meet, but the Section 162 standard has become problematic for rental real estate. The IRS also issued Proposed Revenue Procedure 2019-7 to offer a safe harbor. A rental activity…

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