Pass-Through Deduction Impacts Deal Making
Source: RSM US LLP. PBMares is a member of RSM US Alliance.
Partnerships (and LLCs taxed as partnerships) are common vehicles for the portfolio companies that private equity funds acquire.
Important Information for Business Owners Who Make Charitable Contributions
Many Owners of partnerships, S Corporations, sole proprietorships, and rental real estate ventures can now earn up to 20% of their Qualified Business Income (“QBI”) tax-free through the QBI deduction.
How Employers Can Comply with the DOL’s New Overtime Rules
After more than four years in the draft proposal stage and federal lawsuits, Congress recently enacted new overtime rules for white-collar workers.
Like-Kind Exchanges and Installment Sales
When business owners have divergent goals, Section 1031 contains several provisions for like-kinded exchanges and installment sales that can be used to satisfy all parties involved. Proactive tax planning can minimize and delay taxes due while allowing members to pursue their desired outcome.
Business Interest Limitation Affects More Businesses
One recently overlooked item of the Tax Cuts and Jobs Act for companies involved with a syndicate or tax shelter is business interest expense limitation. Don’t be caught off guard. Proper planning and reporting can help preserve your current year deduction.
Tax Consequences for Tax-Exempt Social Clubs
While a club may be tax-exempt, it may be subject to tax on its unrelated business activities. Read on to learn more as well as to download PBMares' “Member Function Questionnaire” for help in gathering the information required by the IRS.
Businesses Serving Washington, D.C. Hit with Baseball Fee
Washington, D.C. officials helped bring baseball back to the nation’s capital in 2008 by establishing a Baseball Fee. Initially, only businesses with a physical connection to the district had to pay the fee. However, businesses now have to pay it if revenues from services were delivered to customers located there, regardless of where the service was actually performed.
Avoid Costly State Use and Sales Tax Mistakes
Many businesses find themselves purchasing a significant amount of supplies and equipment online. However, chances are your business does not have a policy in place to identify online purchases where sales tax has not been paid at the time of purchase and remits use tax on these items.
IRS Issues Guidance for Parking Expenses as Qualified Transportation Fringes
Guidance issued from the IRS on December 10, 2018 provides examples of ways to identify and calculate non-deductible parking expenses including a four-step process when taxpayers and tax-exempt organizations own or lease parking facilities. This guidance allows for any reasonable method in calculating the non-deductible expenses.
Does My Rental Real Estate Qualify for the Section 199A (QBI) Deduction?
On Friday, January 18, 2019, the Treasury Department issued Final Regulations for 199A and IRS Notice 2019-07, which provided a safe harbor for rental real estate enterprises. Rental activities that meet each of the following tests can be considered Section 162 trades or businesses for purposes of Section 199A, and are thus eligible for the 20 percent deduction.