December 3rd, 2019 by Kim Chen
If you’re starting to fret about your 2019 tax bill, there’s good news — you may still have time to reduce your liability. Three strategies are available that may help you cut your taxes before year-end, including: 1. Accelerate deductions/defer income. Certain tax deductions are claimed for the year of payment, such as the mortgage […]
December 3rd, 2019 by Kim Chen
Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity. IRA distribution basics A popular way to transfer IRA assets to charity is through a tax provision […]
August 24th, 2019 by Kim Chen
The IRS has issued final regulations (TD 9864) that require taxpayers to reduce their charitable contribution deductions by the amount of any SALT credits they receive or expect to receive in return. The final regulations, which largely follow rules proposed by the IRS in August 2018, provide exceptions for dollar-for-dollar state tax deductions and tax […]
August 18th, 2019 by Kim Chen
Slaughter, TC Memo 2019-65 The Tax Court held that a successful author’s brand was part of her trade or business. As a result, all of her income from her publishing contracts was derived from her trade or business of being a writer and was subject to self-employment tax. Background. Code Sec. 1401(a) imposes a tax […]
August 6th, 2019 by Kim Chen
The IRS is encouraging individuals with expiring Individual Taxpayer Identification Numbers (ITINs) who expect to have a filing requirement in 2020 to start the renewal process early to avoid refund delays next year. ITINs that haven’t been used on a return at least once in the last three consecutive years will expire 12/31/19. Also, ITINs […]
July 31st, 2019 by Kim Chen
The IRS has released guidance that amplifies Notice 2018-48 , which lists the population census tracts that the IRS designated as Qualified Opportunity Zones (QOZs). Specifically, the agency has added two additional census tracts in Puerto Rico that have been designated as QOZs under IRC Sec. 1400Z-1(b)(3). Also, the IRS has published a Frequently Asked […]
July 25th, 2019 by Kim Chen
Donoghue, TC Memo 2019-71 A married couple’s losses from their horse breeding activity were disallowed. The taxpayers failed to show they had a profit motive for the activity. Background. Taxpayers carrying on a trade or business can deduct ordinary and necessary expenses paid or incurred while carrying on that trade or business. (Code Sec. 162) […]
July 19th, 2019 by Kim Chen
Mihelick, (CA 11 6/18/2019) 123 AFTR 2d ¶2019-791 The Court of Appeals for the Eleventh Circuit has reversed a district court decision and held that a payment a divorcee made to her ex-husband pursuant to their divorce agreement was a deductible loss under Code Sec. 165(c)(2) and, therefore, qualified for treatment under the claim of […]
July 1st, 2019 by Kim Chen
PLR 201923016 In a Private Letter Ruling, IRS determined that a surviving spouse was the designated beneficiary of the taxpayer’s Roth IRA for purposes of the Required Minimum Distributions (RMDs) rules. A retroactive election allowed by a state court which caused other beneficiaries than the surviving spouse to potentially exist was not effective to change […]
June 13th, 2019 by Kim Chen
T.D. 9864; Reg § 1.170A-1, Reg § 1.170A-13, Reg § 1.642(c)-3; IR 2018-172; IR 2019-109, 6/11/2019 IRS has issued final regs and an accompanying News Release which provide rules under which the amount otherwise deductible as a charitable contribution would generally be reduced by the amount of any state or local tax (SALT) credit received […]
© 2024 Rogers Wood Hill Starman & Gustason / Privacy Notice / Disclaimer
