Often, “inflation’ is a bad word for economists and financial experts to utter. But last week, the IRS announced its annual inflation adjustments for 2020 and many tax deductions have increased as a result. In today’s post, we’ll get you up to speed on the increased deductions available in 2020. Let’s get at it!
Revenue Procedure 2019-44 explains these annual adjustments. Some tax law changes in the Revenue ... Read More
The reach of state taxation greatly broadened on June 21, 2018. On that day, the Supreme Court upheld South Dakota’s “economic nexus” standard in South Dakota v. Wayfair. The court gave the green light for South Dakota’s imposition of a sales tax on an out-of-state seller, even though the seller did not have a physical presence in the state. Today’s post outlines some basics of nexus and Business Activity (Nexus) Questionnaires that states ... Read More
The IRS issued final regulations on September 23, 2019, for hardship distributions from 401(k) plans. The final regulations are effective for distributions made on or after January 1, 2020, or the rules can electively be adopted for distributions made after December 31, 2018.
For a bit of background, 401(k) plans may include a provision that a plan participant can receive a distribution from the plan due to hardship. The participant must have an immediate and heavy financial need. There is a safe harbor listing of expenses ... Read More
By: Eric R. Elmore
The 2019 tax filing season has finally concluded, and not a moment too soon. Americans filed the first full year of income under the Tax Cuts and Jobs Act of 2017 (“TCJA”), the most sweeping revamp of the tax code in more than 30 years. Today’s post is a snapshot of the blogs that were most read by our subscribers over the course of the filing season. It’s a good indication of what was on the minds of our readers while filing their returns. Did any of these ... Read More
We are closing in on the one-year countdown to the presidential election. Democratic candidates’ campaigns are in full swing, each vowing for the opportunity to challenge President Donald Trump in the 2020 election. In the coming year, we'll hear various views on a wide range of campaign issues, but today we will highlight one area in particular--taxes! Here are a few tax topics that are bound to arise in the campaign and some of the ... Read More
There’s a reason why Warren Buffett is revered as one of the wealthiest men in the world. He’s mastered the ability to grow his wealth while making strategic and tax efficient moves. His most recent move in charitable donations is a perfect example.
It was announced earlier this year that Buffett, chairman of Berkshire Hathaway, Inc., pledged to donate his shares--worth approximately ... Read More
This is the time of year when experienced tax professionals may be looking to change firms. For all professionals, serious about their career, it is difficult to know where you will be happy and find meaning. There are so many factors to consider. We all value loyalty. And, as someone once told me, ‘the grass may be greener, but you still must mow it!’ But for many, especially those serious about their tax ... Read More
Suppose you are someone who lives near a college town or resort area and have extra rooms to spare in your home. You think to yourself, why not rent out one of the rooms since you aren’t using the space and make some extra money? Well, you could. But, since you are receiving rental income now, taxing authorities also want their share.
This ... Read More
The Tax Cuts and Jobs Act added Section 461(l) to the Internal Revenue Code (“the Code”), which limits the excess business losses of noncorporate taxpayers. The limitation applies to sole proprietors, partnerships, S Corporations, limited liability companies, estates and trusts for years beginning after December 31, 2017 and before January 1, 2026.
Excess business loss ... Read More
Every day you put off funding your retirement is another day your nest egg could be growing. Starting late may seem like a tall task, but it is still possible to set aside enough for a comfortable retirement if you begin the process now, rather than later. It is first imperative that you develop a plan, set goals and begin action. The longer you wait, the harder it will be to catch up. ... Read More
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