Blog posts from: 2018
Tax Reform Planning Series: Take advantage of lower tax rates and investment gains
Under the Tax Cuts and Jobs Act (TCJA), 2018 ordinary tax rates are generally lower than those for 2017. For example, the top rate has been reduced from 39.6% to 37%. (The remaining six rates are 10%, 12%, 22%, 24%,...
What to consider when structuring 1031 partnership exchanges
Partnerships present challenges for tax planning, particularly regarding the deferral of capital gains through a 1031 Tax Deferred Exchange. Partnership interests are excluded from 1031 Exchange treatment under IRS Section 1031 because they are considered personal property, even if the...
SR Client Question: Can partners concurrently be employees?
A partner CANNOT be an employee of the partnership. This conclusion is per the following: a) I.R.S. Revenue Ruling 69-184 (1969-1 CB 256, IRC Sec(s) 3121, b) General Counsel Memorandum 34173, 7/25/1969, IRC Sec(s) 119 c) General Counsel Memorandum 34001,...
Tax credit can help employers hiring new workers
The IRS encourages employers to utilize the Work Opportunity Tax Credit (WOTC) to incentivize hiring workers facing significant employment barriers. The credit supports employers who hire individuals from specified categories, such as long-term unemployment recipients and veterans. Recent legislative changes...
Obtaining a refund of transfer tax paid on the sale of a home that has lost value
Michigan home sellers who experience a decline in their home's value since purchase can now claim exemption from state transfer tax, thanks to recent legislation and a Michigan Supreme Court decision. This exemption, designated as (u), applies if the State...
Report finds fraud hits small businesses harder
According to the recently released 2018 Report to the Nations on Occupational Fraud and Abuse, occupational fraud continues to drain a significant amount of money from businesses worldwide, with smaller organizations being hit particularly hard. The Journal of Accountancy recently...
IRS reminds taxpayers to report virtual currency transactions
The IRS recently reminded taxpayers that income from virtual currency transactions is reportable on their income tax returns just like transactions in any other property. The IRS has issued guidance in IRS Notice 2014-21 for use by taxpayers and their...
Where services revenue is sourced has changed for Michigan cities
The rules for where city sales for service-based businesses are sourced has changed, but the city of Detroit may appeal it. Honigman, the largest law firm in Detroit, wanted to source its services not based on where its attorneys were...
The tax consequences of student loan forgiveness
When it comes to student loan forgiveness, there are four income-based student loan repayment options to choose from. They are: Pay As You Earn (PAYE) Revised Pay As You Earn (REPAYE) Income Based Repayment (IBR) Income Contingent Repayment (ICR)...
Understanding use tax exemption on the transfer of vehicles between relatives and others
Michigan exempts from use tax a transaction or portion of a transaction for the transfer or purchase of any taxable property between certain relatives. Resale and other exemptions available under the use tax act also apply to the equalization tax....
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