Category: Tax
IRS requires a qualified appraisal to deduct charitable contribution of cryptocurrency
Generally, IRC Sec. 170(f) requires a taxpayer to satisfy certain substantiation requirements to claim a charitable contribution deduction. Recently, the IRS disallowed a taxpayer's charitable contribution deduction for a donation of more than $5,000 in cryptocurrency because she failed to...
Tax-free rollover from 529 plans to Roth IRAs will be allowed starting in 2024
In December 2022, Congress passed the Consolidated Appropriations Act of 2023, an omnibus spending bill that includes the much-anticipated and long-awaited retirement bill known as SECURE Act 2.0. One of the provisions of SECURE Act 2.0 that has grabbed a disproportionate...
Reporting delay for thresholds for third party payment platforms
The Internal Revenue Service today announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report...
IRS 2023 Mileage Rate Rises to 65.5 Cents Per Mile
Beginning January 1, 2023, optional standard mileage rates used by the IRS to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes will be: 65.5 cents per mile driven for business use, up 3 cents...
SafeSend Returns email to “Please update your K1 Recipient Information” is legitimate
ShindelRock clients may have received an email on December 25 related to updating K1 recipient information in SafeSend Returns. These are legitimate emails related to built-in product functionality. This feature is designed to ensure that the K1 recipients’ personal information...
File a Protective Claim with IRS to preserve a possible refund claim
There are situations where a taxpayer may be entitled to a federal tax refund, but the refund is based upon future contingent events that are not determinable at the present time. There are numerous situations where this can occur: There...
IRS tax rules for self-rental properties
When a taxpayer owns and materially participates* in an operating business AND also owns the accompanying real estate rented to that operating company, that is defined as a “Self-Rental” per IRC, Sec. §469. There are complex regulations around reporting income and losses...
Annual Michigan Individual Income Tax System Maintenance Begins on Thursday
FYI: Effective after 5 p.m. on Thursday, Dec. 8, the state Treasury Department will suspend processing state individual income tax refunds due to annual tax processing system upgrades required for the upcoming 2023 tax filing season. Individuals will be able...
SR Client Question: What is considered a “service” for 1099 reporting purposes?
In light of the higher penalties for failure to file Form 1099s correctly, examining your business' vendor payments is more important than ever before. While many transactions will be fairly straightforward and clearly not merit a 1099-NEC, some vendor lines...
‘Tis the season: Real estate gifts must be appraised
If your holiday list this year includes gifts of real estate, the gifts must be appraised and made at their current fair market value per the IRS. A detailed appraisal by a professional appraiser, who is thoroughly trained in the...