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.
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.
Prior to the enactment of the TCJA, there was no need to break out meals and entertainment, as they were both 50 percent deductible; however, the new law repealed all deductions for entertainment, amusement, and recreation, regardless of whether they have a business purpose. Defining the line between meals and entertainment became critical to determining deductibility but guidance on this was limited. We’ve received some instruction and we have some good news to share!
The Tax Cuts and Jobs Act (TCJA) made sweeping changes to numerous sections of our tax law. Many new provisions have been widely discussed, [...]
The largest change to individual tax compliance resulting from the Tax Cuts and Jobs Act affects the calculation of various itemized deductions. Clients and friends have expressed confusion and even repeated some common misconceptions about the changes.
Pass-through and self-employed business owners stand to gain from a key provision in the recently enacted Tax Cuts and Jobs Act. The Act creates a new deduction of Qualified Business Income (or “QBI”), under IRC Section 199A, effective for tax years beginning after December 31, 2017 and before January 1, 2026.
Today, President Trump signed the Tax Cuts and Jobs Act into law. While the House and the Senate originally had measurable differences in their respective [...]
On Friday afternoon, the combined House and Senate Conference Committee unveiled a reconciled tax bill (The Tax Cuts and Jobs Act) that would significantly overhaul [...]