Whether home mortgage interest and home equity loan interest are deductible under the new law
Posted by Kim Chen on February 1st, 2018
I am writing to let you know about changes in the rules for deducting qualified residential interest, i.e., interest on your home mortgage, under the Tax Cuts and Jobs Act (the Act). Under the pre-Act rules, you could deduct interest on up to a total of $1 million of mortgage debt used to acquire your […]
New treatment of alimony under the new tax law
Posted by Kim Chen on January 30th, 2018
The Tax Cuts and Jobs Act (the Act) has made changes to the tax treatment of alimony that you will be interested in. These changes take effect for divorce agreements and legal separation agreements executed after 2018. Current rules. Under the current rules, an individual who pays alimony or separate maintenance may deduct an amount […]
Procedure—IRS Extends Penalty Relief for Partnerships and REMICs:
Posted by Kim Chen on January 9th, 2018
In Notice 2017-47, the IRS granted penalty relief for partnerships that failed to file their tax returns or extension requests by the new March 15 deadline. Partnerships qualified for relief if they filed returns with the IRS and furnished copies to partners (as appropriate) by the date that would have been timely before amendment by […]
Income Tax—IRS Issues New Draft Casualties and Thefts Form for 2016:
Posted by Kim Chen on January 7th, 2018
Among other things, the Disaster Tax Relief and Airport and Airway Extension Act of 2017 (Disaster Act) provided relief to taxpayers who suffered a net disaster loss due to Hurricanes Harvey, Irma, or Maria. For example, the Disaster Act eliminated the 10% of AGI reduction and allowed taxpayers claiming the standard deduction to take advantage […]
Identity Theft—New Procedures for Small Business Identity Theft Protection:
Posted by Kim Chen on January 5th, 2018
In addition to individuals, businesses are increasingly becoming victims of identity theft. The IRS has acknowledged that fraudulent tax return filings for small businesses have sharply increased. These false returns affect corporate, partnership, estate, and trust filers. In a tax tip, the IRS describes new procedures to protect businesses from identity theft. These new procedures […]
