Taxpayers who engage in renting real property have multiple accounting, tax and legal issues that should be considered. To reap the highest benefits from the activity it is in your best interest to talk with a professional who is knowledgeable and objective. One of the tax topics to be evaluated is the qualified business income [...]
What is the Net Investment Income Tax? In general, investment income includes, but is not limited to: interest, dividends, capital gains, rental and royalty income, non-qualified annuities, passive activity income and income from businesses involved in trading of financial instruments or commodities. The tax is 3.8% on such income. Who is subject to it? A [...]
S Corporation shareholders who are also employees of the business are subject to special scrutiny. One area of special scrutiny is the compensation and benefits paid to them. For any business operating as an S corporation, it's important to ensure that shareholders involved in running the business are paid an amount that is commensurate with [...]
Cybercriminals are sophisticated in research methods, deception and tax law and filing practices. By gathering your information publicly available and disclosed by you, their crimes put you at risk. Be smart, protect yourself and secure access to your personal and business data. Use strong passwords. A commonly overlooked step to protecting your tax and financial [...]
The Internal Revenue Service, state tax agencies, and tax professionals are working together to protect taxpayers from stolen identity refund fraud. As partners, we share tips as part of the 2019 National Tax Security Awareness campaign to help keep you informed on the latest scams. These tips provide useful information to protect you. Here’s what [...]
Employers large and small must be alert to the growing threat of business identity theft and take additional steps step up cyber security protections. Awareness about business identity theft is one in a series of tips offered by the Internal Revenue Service, state tax agencies and tax professionals, which work together as the Security Summit [...]
Taking control over your business and individual tax situation has beneficial consequences. At worst, knowing what the tax impact of the current year might be and planning for the inevitable tax payment due. At best, knowing what the tax impact of the current year might be and evaluating the best strategy to manage the tax liability. The first step to [...]
What is the Qualified Business Income Deduction? The Tax Cut and Jobs Act (TCJA) introduced a new business deduction (under IRC Section 199A) for certain taxpayers beginning January 1, 2018 through December 31, 2025. In general, the new qualified business income deduction is 20% of qualifying business income from S Corporations, Partnerships, Schedule C, [...]
What are Business Meals? Under the Tax Cut and Jobs Act (TCJA), allowable business meals remain deductible expenses, subject to the 50% limitation. As a recap, allowable business meals are 50% deductible if they are: Ordinary and necessary expenses paid or incurred in carrying-on any trade or business; when the meal is directly related, [...]
What is new for the Business Entertainment Deduction? Effective January 1, 2018, entertainment expenses are no longer deductible. Entertainment expenses include those costs connected with activities that constitute entertainment, amusement or recreation. What is Entertainment? When categorizing what constitutes entertainment, an objective test shall be used to determine whether an activity is of a [...]