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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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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Trump on Trump – How His Tax Plan Benefits Him Personally

Posted on Fri, Jan 20, 2017

By: Peter Derby, CPA

 

Today, Republican outsider Donald J. Trump will become the 45th President of the United States.    We’ve heard him proclaim his ownership in companies worth “billions and billions of dollars.”  Assuming the Trump empire consists of both corporate and pass-through entities, Mr. Trump is in a position to help himself and his family financially via his proposed changes to U.S. tax law. Here is a high-level look at parts of his plan that may benefit wealthy Americans to the tune of “millions and millions of dollars.”

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2012 American Taxpayer Relief Act - Business Tax Breaks Retroactively Reinstated and Extended

Posted on Tue, Jan 08, 2013

 

Last week, in our first blog post on the highlights of the 2012 American Taxpayer Relief Act (the Act), we promised to keep you constantly updated on the many complex pieces of the legislation.  Our first update focused on the impact on individual filers. Today, we will look at the highlights for business entities. There’s a lot of ground to cover so for ease of digestion, we’ll point out the most familiar provisions. Updates and additional information will follow, as promised, on a regular basis.

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