Tag: TCJA

SECURE Act and estate tax clawback could affect inherited money

A recent MarketWatch article highlighted two recent tax initiatives that could affect the wealthy. The SECURE Act would eliminate big tax advantage for IRA beneficiaries. Few noticed when the House of Representatives in May overwhelming passed the imaginatively named “Setting...

Does converting your business to a C corporation make sense under the TCJA?

If you’re thinking about converting your business entity to a C corporation to take advantage of the new flat 21% corporate federal income tax rate under the Tax Cuts and Jobs Act (TCJA), it’s important to do your homework. The...

QBI deduction and statutory employees

According to a recent article in the Journal of Accountancy, a little-noticed consequence of the proposed regulations on the 20% qualified business income (QBI) deduction introduced by the legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, is...

IRS issues final regulations under section 199A (20% deduction)

The U.S. Department of the Treasury has issued final regulations and other guidance on a substantial provision of the Tax Cuts and Jobs Act, which allows owners of sole proprietorships, partnerships, trusts, and S corporations to deduct up to 20...

2019 filing season may be delayed, according to TIGTA

  • October 10, 2018
  • Mark Hughes CPA CFE

According to a report recently released by the Treasury Inspector General for Tax Administration (TIGTA), the 2019 filing season may be delayed. Here’s why. To implement the Tax Cuts and Jobs Act (TCJA), the IRS will need to create or...

New proposed regulations on 20% QBID

The IRS recently issued proposed regulations on the 20% flow-through deduction. There is a 45-day period for people to comment, so these are not final. However, they can be relied upon until the final ones are issued, and they provide...

Tax Reform Planning Series: Maximize your qualified business income deduction

You may have heard a lot of talk in the news about a new deduction for “pass-through” income, but it’s actually available for qualified business income from a sole proprietorship (including a farm), as well as from pass-through entities such...

Tax Reform Planning Series: Bunch charitable contributions through donor-advised funds

The Tax Cuts and Jobs Act (TCJA) temporarily increases the limit on cash contributions to public charities and certain private foundations from 50% to 60% of AGI. However, standard deduction has almost doubled. Combined with the capping of the state and...

Tax Reform Planning Series: Take advantage of the new child tax credit

Before the Tax Cuts and Jobs Act (TCJA), the child tax credit was $1,000 per qualifying child, but it was reduced for married couples filing jointly by $50 for every $1,000 (or part of $1,000) by which their Adjusted Gross...

Tax Reform Planning Series: Maximize home mortgage interest deductions

Before the Tax Cuts and Jobs Act (TCJA), taxpayers could deduct interest paid on up to $1 million ($500,000 if married filing separately) of home acquisition debt (debt used to buy or substantially improve a first or second home). Also,...