Year-End Tax Planning with Holiday Cheer As the holiday season approaches, there never seems to be enough time to plan your gatherings and celebrations with family and friends. Yet, it pays to spend a few moments to take stock of your taxes before the end of the year to mitigate your tax exposure, boost your […]
IRS Finalizes QBI Deduction Safe Harbor for Rental Real Estate On September 24, the Internal Revenue Service (IRS) issued Revenue Procedure 2019-38 that has a safe harbor allowing certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income (QBI) […]
Background The new QBI deduction, created by the 2017 Tax Cuts and Jobs Act (TCJA) allows many owners of sole proprietorships, partnerships, S corporations, trusts, or estates to deduct up to 20 percent of their qualified business income. Eligible taxpayers can also deduct up to 20 percent of their qualified real estate investment trust (REIT) […]
IRS Waives Penalty for Many with Short Witholding or Estimated Tax Payments The Internal Revenue Service (IRS) announced on January 16, 2019 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 IRS […]
Treasury Secretary Steven Mnuchin said that the new promised postcard return will be released this week. The New York Times has reportedly obtained a draft of the new Form 1040 and posted it in their news article on Monday. The current two-page form is condensed into one page by introducing various new schedules that need […]
Individuals and businesses with a filing or payment due date of April 17 will now have until midnight on Wednesday, April 18. Taxpayers do not need to do anything to receive this extra time, according to IR-2018-100. The IRS had had technical difficulties with the agency’s electronic filing and online payment systems. A “hard reboot” […]
IRS Urges Travelers Requiring Passports to Pay Their “Seriously Delinquent Tax Debt” or Enter into Payment Agreements to Avoid Losing US Passport Further to our newsletter last year, Notice 2018–01 was issued by the IRS on January 16 to notify the public that, starting this month, it will implement new procedures that will affect taxpayers with […]
Tax Cuts and Jobs Act: Individual Provisions of Key Interest to U.S. Expatriates Through a somewhat choreographed partisan political maneuver, the Republican-controlled Congress and White House enacted the Tax Cuts and Jobs Act (“TCJA”), the first major tax reform legislation since the Reagan administration, on December 22 in record time. The individual provisions are generally due to sunset […]
GOP Tax Bills: Individual Provisions of Key Interest to U.S. Expatriates With the House advancing the amended Tax Cuts and Jobs Act for a vote, the Senate has also released its own version of the tax bill (technically only a “Description of the Chairman’s Mark“), which is scheduled for markup, starting November 13, 2017. While […]
Provisions of Key Interest to U.S. Expatriates The Ways and Means Committee has published details of the Tax Cuts and Jobs Act (H.R. 1) that is scheduled for markup beginning November 6, 2017. There are likely to be changes as it makes its way through the Congress and the exact impacts may only be known […]