Newsletters
IRS PROVIDES PENALTY IRS PROVIDES PENALTY RELIEF FOR UNDERPAYMENT FOR 2018 INDIVIDUAL TAXES
Posted February 2019
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.
Three Ways to Deduct the Cost of Business Property
Posted February 2019
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:
RENTAL REAL ESTATE, WHEN DOES IT QUALIFY FOR SEC. 199A DEDUCTION?
Posted February 2019
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.