Tax Warrior Chronicles

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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Excessive CEO Pay - Performance-based Compensation, et. al.

Posted on Thu, Jun 14, 2018

By: Jane Scaccetti, CPA, MT, PFS

 

With CEO compensation packages trending higher for decades, excessive remuneration paid to CEOs of publicly traded companies is not a new topic. However, the debate escalates with the passing of the Tax Cuts and Jobs Act of 2017.  Included in the sweeping tax law changes is an attempt to close a loophole which has contributed to the debate.   For the best understanding of the loophole, let’s start with its history.

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Learn from The Tax Warriors® – Upcoming Events

Posted on Tue, May 01, 2018

Educating clients is among the most important parts of being a Tax Warrior.  We take pride in helping clients sustain and grow their wealth through Tax As A Business Strategy®.  To that end, here are a few upcoming events featuring Tax Warriors as speakers/educators.  Where available, links are provided for more information or to register.  We hope to see you at one of our programs.

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Changes to Estate Plans with Increased $10M Exclusion

Posted on Thu, Apr 05, 2018

By: Nastassja Markham Coletta, JD, LLM

 

The new tax law provides opportunities for individuals to pass considerably more wealth on to their loved ones. Beginning in 2018, the federal exemption for gift, estate and generation-skipping transfer taxes is doubled from $5 million to $10 million (adjusted for inflation). For 2018, the inflation-adjusted exemption amount is expected to be $11.18 million. This means, on the federal level, a married couple can potentially leave over $22 million tax-free to their heirs. But, there is a catch.

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529 Plans Expand in New Tax Law

Posted on Tue, Apr 03, 2018

By: Eric R. Elmore

 

Rising college tuition and related costs show no sign of slowing down. A tool designed to help you manage these costs is the tax-free 529 plan. However, with the signing of the new tax law last year, families can now use 529 plans to cover more than just college tuition.

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Retirement Savings Strategy Thwarted by New Tax Law

Posted on Thu, Mar 15, 2018

By: Karolyn R. Banks, CPA, MT

 

Another casualty of the 2017 Tax Cuts and Jobs Act (“TJCA”) is the ability to recharacterize a Roth IRA conversion. Prior to this change, taxpayers generally had until October 15 of the year following the year of a Roth IRA conversion to recharacterize the transaction. With the president’s signing of the TJCA, those saving with Roth IRAs must rethink this strategy.

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Tax Reform Update: Interest on Home Equity Loans Often Still Deductible

Posted on Thu, Mar 01, 2018

By: Rosalind W. Sutch, CPA, MT

 

On February 21, 2018, the IRS released IR-2018-32 where it clarified that, in many cases, taxpayers can continue to deduct interest paid on home equity loans under the recently enacted Tax Cuts and Jobs Act (TCJA).  If you have or are contemplating taking out a home equity loan or line of credit, read on to see how you may be affected by TCJA.

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Part II (of 4)- Mandatory Transition Tax on Certain Deferred Foreign Income 

Posted on Tue, Feb 13, 2018

By: Yi Yang, CPA, MBA and Steven Braun, CPA

 

In Part I of this four-part series, we explained which taxpayers are subject to the new Transition Tax and the due dates for different taxpayers.  Today, in Part II, we discuss the complexity in determining taxable income for the Transition Tax. 

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Changes in Treatment of Entertainment Expenses

Posted on Tue, Jan 30, 2018

By: Jeremy Ferman, CPA

 

You just received a great lead for a potential new business partner. You had a few positive conversations over the phone and email, and now you are looking to come to a mutually beneficial agreement to both your company and your potential new partner.  Dinner at a nice restaurant followed by a Sixers game seems like a great way to connect on a human level, talk about your respective businesses, and “seal the deal.”  Before the Tax Cuts and Jobs Act (”The Act”) was passed, business-related entertainment expenses like the picture painted here were considered true costs of furthering business development.  Now, the picture has changed.

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Mandatory Transition Tax on Certain Deferred Foreign Income - Part I

Posted on Tue, Jan 23, 2018

By: Yi Yang, CPA, MBA and Steven Braun, CPA

 

As of January 1, 2018, the 2017 Tax Cuts & Jobs Act (TCJA) changes the taxation regime for U.S. multinational corporations, especially U.S.-owned controlled foreign corporations (CFC).  The international provisions in TCJA introduce a new territorial system for the taxation of foreign company income.  Before these new tax provisions take effect, the new law imposes a mandatory one-time tax (the “Transition Tax”) on certain foreign company earnings traditionally not subject to U.S. federal income tax until distributed as a dividend to U.S. shareholders.

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