Tax Warrior Chronicles

Home Office Deductions and the Coronavirus

Posted on Tue, Feb 09, 2021

By: Ashley Hampton, MPA

 

2020 was an extraordinary and challenging year. In fact, a Stanford University study found that roughly 40 percent of the U.S. work force now works from home full time due to COVID-19. This has led many to question the effect this has on their taxes. Do you now qualify for the home office deduction? Did the CARES Act account for this wave of remote workers? Does my state follow the federal tax law? Continue reading to find your answers.

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IRS to Allow Pass-through SALT Workaround

Posted on Thu, Nov 12, 2020

By: Jonathan S. Kandel, CPA and Clare Porreca, CPA, MT

 

On November 9, 2020, the IRS released Notice 2020-75 announcing proposed regulations will be issued confirming that state and local taxes imposed on and paid by a partnership or S Corporation will be 100% deductible by the entity, and thus not limited to the $10,000 limit on state and local tax (SALT) deductions.

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PPP Update #14 – You Can Apply for Forgiveness Early, but Buyer Beware

Posted on Thu, Jun 25, 2020

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

 

 

The Treasury continues to rewrite guidance based upon the changes passed within the Paycheck Protection Program Flexibility Act (PPPFA). Overnight on Monday, June 22, the Treasury released the 20th Interim Final Rule (IFR). There are no surprises on what to expect with the 20th IFR: some clarifications, a few new things, and you guessed it, more unanswered questions. Today, we will focus on a significant new

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PPP Update #13 – Revised Forgiveness Guidance: New IFRs and Applications

Posted on Thu, Jun 18, 2020

As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

 

 

Since our last blog, the Treasury issued two additional Interim Final Rules (the 18th and 19th), revised the original loan forgiveness application for changes made by the Paycheck Protection Flexibility Act (PPFA), and issued a new EZ loan forgiveness application. If you are up to date with our blogs, we are starting to compare the Paycheck Protection Program (PPP) to extra-innings in the longest baseball game

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PPP Update #5 – New Guidance for Individuals and Partners with Self-Employment Income

Posted on Thu, Apr 16, 2020

 As guidance in this area is being released regularly, we recommend you read all of our blogs on this subject.  All the blogs in the Paycheck Protection Program series are here: Updates #1, #2#3#4#5#6#7,#8,#9,#10,#11,#12,#13, #14, #15#16#17, #18,

#19, #20, #21, #22, #23

 

 

For some reason the SBA really likes issuing CARES Act guidance Tuesday evenings around 5:00PM.  This was again the case on Tuesday, April 14th when it issued its third interim final rule (regulation) related to the Paycheck Protection Program (PPP).  The third interim final rule provides guidance for individuals with self-employment income who file a Form 1040, Schedule C and provides an update

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CARES Act Offers Relief for TCJA Interest Expense Limitations

Posted on Thu, Apr 09, 2020

As part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Congress provided temporary relief for individuals and businesses by adjusting interest expense limitations under Internal Revenue Code 163(j).  Today, we summarize those changes.

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Significant Change in Reporting for Partnerships Ahead

Posted on Mon, Dec 02, 2019

By: Jonathan S. Kandel, CPA

 

Just when you thought all was calm, the IRS shook up the partnership tax world. The recently released IRS proposed 2019 instructions for Form 1065 highlight changes. Here is one proposed change we don’t think will go away:

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New 20% Qualified Business Income Deduction: An Intro to §199A

Posted on Wed, Feb 21, 2018

As part of the Tax Cuts & Job Act, passed on December 22, 2017, a new provision with significant planning opportunities was added to the tax law.  At its simplest level, the Qualified Business Income (QBI) deduction allows individuals a §199A deduction of up to 20% against income from passthrough businesses (partnerships, S corporations, and sole proprietorships) for tax years between 2018 and 2025. The deduction can have significant benefits, potentially decreasing the effective tax rate on business income from 37% to 29.6% for those in the top bracket.

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New Tax Strategy for Foreign Investors in U.S. Partnerships

Posted on Wed, Sep 27, 2017

By: Yi Yang, CPA, MBA and Ronald Wiener, JD

 

A recent United States Tax Court case may allow foreign partners to legally avoid paying U.S. income tax on certain income from sale of its interest in a partnership (including LLC’s taxed as a partnership) that engages in a trade or business in the United States.  They may even be able to get refunds if they paid taxes to the IRS on such income in prior years.  This is the principal takeaway from the Tax Court’s 50-page opinion involving the tax treatment of a foreign partner’s disposition of its entire interest in a U.S. partnership.

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Penalty Relief for Partnerships That Filed Late in 2017

Posted on Wed, Sep 13, 2017

By: Eric R. Elmore

 

The IRS recently issued guidance providing penalty relief for certain partnerships that did not file the required returns by the new due date for tax years beginning in 2016.  Notice 2017-47 provides penalty abatement for these partnerships only if certain circumstances apply.

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