INFO LETTER SPELLS OUT EFFECT OF RECENT PROPOSED REGS ON STATE’S TAX CREDIT PROGRAM
Posted by Kim Chen on December 12th, 2018
Information Letter 2018-0030 IRS has issued an information letter in which it provides that a state tax credit program, to which business taxpayers can make payments in exchange for credits against various business taxes, is not impacted by the recent proposed regs targeting state and local tax (SALT) limitation workarounds. Background—business expense deduction. Generally, a […]
Donations of Stock to a Private Foundation
Posted by Kim Chen on December 9th, 2018
Are you interested in setting up a private foundation? With this approach, you make contributions to a foundation and get a charitable tax deduction just as you would with any qualified organization. Then, as the director, you decide which charities you want to make distributions to so you retain control of the assets. There are […]
Beware of Deductions Claimed for Certain Business Expenses
Posted by Kim Chen on December 4th, 2018
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that’s helpful and appropriate for your business. The IRS sometimes challenges deductions claimed for certain types of business expenses. In doing so, an […]
Create an Accountable Plan to Reimburse Employees for Business Expenses
Posted by Kim Chen on November 25th, 2018
Did you know that the Tax Cuts and Jobs Act (TCJA) eliminated itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025? Fortunately, you can set up a so-called “accountable plan” to minimize the adverse effects of this TCJA provision. Here’s how the accountable plan deal works. Playing by a […]
Claiming the New Employer Tax Credit for Family and Medical Leave
Posted by Kim Chen on November 20th, 2018
The Tax Cuts and Jobs Act (TCJA) establishes a new federal income tax credit for employers that provide qualifying paid family and medical leave benefits to their employees. This credit is only available for two employer tax years — those beginning between January 1, 2018 and December 31, 2019 — unless Congress extends the deal. […]
