Tax Warrior Chronicles

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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Tax Considerations for Pass-Through Entities: §§ 199A and 163(j)

Posted on Tue, Jul 30, 2019

By: Jeremy Ferman, CPA, MA

 

The Tax Cuts and Jobs Act (“TCJA”) added several complicated tax laws to the books, adding a level of complexity for even the smallest pass-through entity returns.  As we enter the home-stretch of the extended filing season, we will examine arguably the two most difficult areas for pass-throughs to navigate: §§ 199A and 163(j). 

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Section 199A Aggregation Rules

Posted on Wed, Jan 30, 2019

By: Lana Goldina, CPA, and Dan Marques, CPA, MT

 

The infamous Section 199A, also known as “20% pass-through deduction,” is considered one of the most complex areas of the Tax Cuts and Jobs Act of 2017. On Friday, January 18, the IRS issued final regulations on parts of the law. Among the many issues and questions needing clarification under Section 199A is how you can elect to aggregate your trades or businesses to potentially maximize the qualified business income (“QBI”) deduction.

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The New Tax Law: 2018 Year-End Planning Tips for Businesses

Posted on Wed, Nov 28, 2018

By: Joseph Brunell, CPA

 

The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017, and became effective on January 1, 2018.   For many businesses, the TCJA provides benefits such as reduced corporate tax rates, removing the corporate alternative minimum tax, and a new pass-through business income deduction.  However, many tax planning ideas go beyond the big-ticket items.  The Tax Warriors® at Drucker & Scaccetti are here to provide some of the top year-end tax planning tips.

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Business Interest Limitation and the Tax Cuts and Jobs Act - Part II

Posted on Tue, Jun 05, 2018

By: Jeremy Ferman, CPA

 

As promised last week, we're back at it analyzing the Business Interest Limitation in Section 163(j) of the Tax Cuts and Jobs Act ("TCJA").  In Part I, we learned the general rules, what companies it applies to, and who may elect out.  Today, we're going to look at how the section affects real estate and pass-through entities.

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2017 Tax Reform: What Trump and Congress Are Now Considering

Posted on Tue, Aug 15, 2017

By: Eric R. Elmore

 

Earlier this year, a brief memo was released by the White House titled, “The Biggest Individual and Business Tax Cut in American History.” It had little detail and left many wondering about the possibility of tax reform this year.   Now, Reuters reports President Donald Trump and congressional Republicans are tackling tax reform to be unveiled as soon as next month. Tax staffers are meeting in the House of Representatives and the Senate through the August break to work on legislation. Here are some areas that are likely to be addressed.

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