Tax Warrior Chronicles

IRS Hones in on Partial Asset Disposition Deductions

Posted on Fri, Jan 17, 2020

By: Ashley Menders


On November 6, 2019, the IRS released a process unit to train and educate its agents on partial asset dispositions of a building. The release of this educational material to its employees may indicate IRS intent to target these deductions for examination, which are common in the real estate industry. Before we address this development, we'll first give you a refresher and explain the information your tax preparer needs to determine if you may benefit from the deduction. Finally, we'll address risk mitigation, given the recent IRS pronouncement.


What is a Partial Asset Disposition?

As part of the Tangible Property Regulations (TPR) released in 2013 that overhauled how

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Inflation Adjustments Increase Tax Deductions for 2020

Posted on Thu, Nov 14, 2019

By: Eric R. Elmore


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 Procedure were added by the Taxpayer First Act of 2019, which, among other things, increased the failure to file penalty to $330 for returns due after the end of 2019. The new penalty will be adjusted for inflation beginning with tax year 2021.


Many amounts,

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Deductions for Qualified Transportation Benefits - Another Casualty of TCJA

Posted on Fri, Sep 06, 2019

By: Robert N. Polans, CPA, MT, PFS, and Stefanie Ostrich, CPA


The Tax Cuts and Jobs Act of 2017 (TCJA) contained hundreds of changes to our tax law including Qualified Business Income Deductions, limits on business interest expense, limits on excess business losses, and major changes to the U.S. taxation of profits earned overseas.  While much of the noise about the new tax law revolved around these items and others, less noise surrounded the part of the law which eliminates the deduction for Qualified Transportation Benefits.


The Internal Revenue Code (IRC) allows employers to offer certain non-taxable Qualified Transportation Fringe (QTF) benefits to their employees.  These can

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IRS Increases Standard Mileage Rates for 2018

Posted on Tue, Dec 19, 2017

Major tax changes are likely coming this week. The winners and losers will be debated long after the bill is signed by the President.  However, the IRS has issued increased standard mileage rates for 2018 and all will benefit from the changes.


Last week, the IRS issued Notice 2018-03, which provides the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2018, the standard mileage rates for a car (also vans, pickups or panel trucks) will be:

  • 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017.
  • 18 cents per mile driven for medical
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“Stressed” Retirement System Forces GAO to Review 401(k) Contribution Deductions

Posted on Thu, Oct 26, 2017

By: Eric R. Elmore


While Congress waivers on whether to reduce retirement savings deductions, all pillars of our retirement system appear to be under stress. A recent Government Accountability Office (GAO) Report highlights the challenges faced by each component of the U.S. "retirement system" and argues the case for a fundamental re-evaluation to better promote future retirement security. And, though the Republican-led Congress rarely follows the GAO’s lead, if you have a 401(k), you should be paying attention to what it is saying.


The GAO says fundamental changes have occurred over the past 40 years to the nation's retirement system, which comprises three main pillars: Social

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Tax & Business Tips for Women-Owned Businesses

Posted on Wed, Jul 26, 2017

By: Irina Moyseyenko, CPA, MT


According to the National Association of Women Business Owners (NAWBO), in 2015 women-owned businesses accounted for 31% of all privately held firms, employed 7.9 million people, and generated $1.5 trillion in sales. And, those numbers are growing. These women know being a business owner is a mix of joy, challenge, success, disappointment, and accomplishment.  In today’s blog, The Tax Warriors® discuss strategic moves and tax breaks to assist women entrepreneurs in building the business of their dreams.


Certify Your Business as Woman-Owned

Certification can give you preference in some government contracts and when doing business with companies with vendor

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The Taxation of the “Uber” Economy

Posted on Tue, Jan 24, 2017

By: Stephanie Otake, CPA


Making extra cash with Uber or Lyft has become a popular pastime, but make sure you consider the tax implications that come with it.  In this blog post, we’ll pose and answer common questions of those taking part in the so-called “sharing economy.”


By now, most have either heard of Uber or Lyft, or have used them. The ride-on-demand service from our cell phones has become a formidable competitor to the taxi cab industry. Many people are taking advantage of these online platforms to make money using their personal property—in this case, their car. Receiving income by providing services from these activities is taxable and must be reported to the IRS.


As an

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Details on Tax Deductions: Meals and Entertainment

Posted on Thu, Nov 15, 2012

Every now and again our clients ask us for details about tax deductions we are all familiar with, but just want to know a little more about.  We've found that knowing the "rules" can result in higher deductions, if you account for and document your files appropriately.  Higher deductions = Less Tax!


Today, we will address the general guidelines of how to ensure you receive the highest tax deduction allowable by law for what your business spends on meals and entertainment.  Meals and entertainment expenses require you to jump through several hoops to qualify as deductible and are subject to limitations. Nevertheless, if you pay careful attention to the rules outlined below, the expenses

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Tax Breaks For Veterans And Their Employers

Posted on Mon, Nov 12, 2012


Only a week after the presidential election and shortly after the devastating effects of Hurricane Sandy, this year's Veterans Day provided all of us an opportunity to take a step back and honor those who risk their lives protecting ours around the globe.  America’s service members put themselves in harm’s way to protect our freedoms, safety and way of life, and we should all be thankful for them and their sacrifice.


Though most government offices will be closed today (Monday November 12th) to recognize the legal holiday of Veterans Day (which fell on a Sunday this year), the Tax Warriors are hard at work and want to share the following summary of tax breaks, credits and economic

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Creative and Tax-Savvy Way to Contribute to Hurricane Sandy Relief

Posted on Fri, Nov 09, 2012

Due to the extraordinary devastation caused by Hurricane Sandy, the IRS is reintroducing tax-favorable, leave-based donation programs that were last implemented in the wake of Hurricane Katrina.  These programs benefit both employees and employers that contribute to Hurricane Sandy relief efforts.  Below you can find answers to a few frequently asked questions about leave-based donation programs.



First, I’ve read your other blogs, so before you start spewing tax knowledge, what are leave-based donation programs and how do they work?

We're glad you asked! Leave-based donation programs allow employees to forgo vacation, sick, or personal leave in exchange for employer cash payments to a

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