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For many Pennsylvania seniors, the property tax and rent rebate program has been an important tool in their financial planning. One of the inequities in computing the appropriate rebate has been in the treatment of pension benefits that were fully included in the calculation of income to determine qualification for the rebate. Now, a recently-passed […]
The IRS recently released a “draft” form of the 2018 federal Form 1040. The newly proposed “postcard” form has just 23 lines, cut down from 79 lines on the 2017 Form 1040. In conjunction with the attempt at simplification, the Forms 1040A and 1040EZ have also been eliminated. However, most of the available deductions and […]
Few consumers have paid all required sales taxes on taxable goods purchased from out-of-state vendors, especially when those items have been purchased from sellers on the internet. While most states have statutory requirements for consumers to pay a use tax on these purchases, the cost and complexity of collecting those taxes has led to widespread […]
The Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017, included a new deduction for 20% of qualified business income passing through to equity owners from enterprises electing to be taxed as pass-through businesses (i.e., S corporations, partnerships and sole proprietorships). Under the new tax reform provisions, non-corporate taxpayers may deduct up to […]
The Internal Revenue Service regularly challenges businesses that are found to generate losses and do not have a profit intent. The specific statute that governs these challenges are known as the “Hobby Loss Rules.” In such challenges, the Internal Revenue Service is trying to prove that the undertaking which has resulted in losses over a […]
The Internal Revenue Service issued Rev. Proc. 2018-29 to provide an automatic consent procedure for taxpayers changing to a new accounting method under new standards issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) for recognizing revenue from customer contracts. This revenue procedure takes into account concerns and suggestions offered […]
The Office of the Texas Comptroller has announced a tax amnesty program which will run from May 1, 2018 through June 29, 2018. The amnesty program will provide delinquent taxpayers with relief from penalties and interest on tax due and applies to periods due before January 1, 2018. By participating in the program, a taxpayer […]
The Internal Revenue Service continues to provide additional guidance on the provisions included in the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017. The Service recently released Fact Sheet 2018-9, which highlights the new depreciation and expensing rules. These rules generally favor capital investment and taxpayers and could play an important […]
The White House and Republicans in Congress continue to discuss a second round of tax reform, according to National Economic Council Director Larry Kudlow, the President’s top economic advisor. Mr. Kudlow made his comments in an April 5 interview, noting that the President and House Ways and Means Committee Chairman Kevin Brady (R-TX) spoke earlier in the […]
In a very significant case, the United States Tax Court found that a limited liability company (LLC) was not entitled to a charitable contribution deduction for the donation of a remainder interest in real property because it failed to adequately substantiate its claimed deduction. The Form 8283 (appraisal summary for noncash charitable contributions) the LLC […]
