May 26th, 2018 by Kim Chen
The IRS has released a fact sheet that highlights new depreciation and expensing rules from the Tax Cuts and Jobs Act (TCJA). Among other things, the maximum Section 179 deduction is increased from $500,000 to $1 million, and the phase-out threshold is increased from $2 million to $2.5 million for property placed in service in […]
May 23rd, 2018 by Kim Chen
In Notice 2003-65, the IRS outlines two alternative approaches (the Section 1374 approach and the Section 338 approach) on the identification of built-in items for Section 382(h) purposes. These methods may increase the annual Section 382 limit to allow more deductions during the five-year period following the ownership change. In a recent Notice, the IRS […]
May 15th, 2018 by Kim Chen
Notice 2018-27, 2018-20 IRB; IR 2018-108, 4/27/2018 In a Notice and accompanying News Release, IRS has provided relief for small employers that properly claimed a credit under Code Sec. 45R for all or part of the 2016 tax year, or that properly claimed the credit for all or part of a later tax year, but […]
May 12th, 2018 by Kim Chen
The WOTC allows employers that hire members of targeted groups who face employment barriers to claim a credit against income tax of a percentage of first-year wages. In a recent News Release, the IRS reminds employers there are now ten categories of eligible workers: qualified IV-A Temporary Assistance for Needy Families recipients; unemployed veterans, including […]
May 2nd, 2018 by Kim Chen
Eligible small employers that pay a portion of the premiums for employee health care coverage in a qualified health plan through a state insurance marketplace’s Small Business Health Options Program (SHOP) are eligible for a tax credit of up to 50% of employer-paid premiums for up to two consecutive years under IRC Sec. 45R. The […]
February 26th, 2018 by Kim Chen
The taxpayer, a real estate developer, held interests in various LLCs, partnerships, and S corporations (collectively, the “affiliate companies”). In 2004, he formed an S corporation to purchase a condominium complex in a bankruptcy sale. During 2004 through 2008, the affiliate companies regularly paid expenses, such as payroll costs, on behalf of the newly-formed S […]
February 14th, 2018 by Kim Chen
I am writing to inform you about changes to the individual and corporate income tax rates that take effect beginning in 2018 under the major piece of tax legislation called the Tax Cuts and Jobs Act (the Act). Rate changes for individuals. Individuals are subject to income tax on “ordinary income,” such as compensation, and […]
February 1st, 2018 by Kim Chen
The Tax Cuts and Jobs Act (TCJA) has effectively lowered the cost of acquiring capital assets by making substantial changes to the income tax rules for bonus depreciation and other “cost recovery.” There’s a lot to discuss, but please bear with me. One or more of these changes will almost surely change your tax bill. […]
January 9th, 2018 by Kim Chen
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 […]
January 5th, 2018 by Kim Chen
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 […]
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