Additional IRS Guidance Expected on the New Sec. 199A Qualified Business Income Deduction

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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 […]

IRS Takes No Bull on Hobby Loss Rules

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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 […]

IRS Offers Automatic Consent Procedure to Change Accounting Methods

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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 […]

Texas Offers Tax Amnesty Program

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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 […]

IRS Releases Fact Sheet for New Depreciation and Expensing Rules  

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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 […]

White House Remains Focused on a Second Tax Reform Package

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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 […]

Tax Court Disallows Charitable Deduction of Remainder Interest

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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 […]

President Trump and House Republicans Planning Phase Two of Tax Reform

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Never mind that taxpayers and tax practitioners alike are struggling to learn and understand the many nuances of the Tax Cuts and Jobs Act (TCJA) signed into law by the President on December 22, 2017. Never mind that the law, as passed, includes many ambiguities and unanswered questions that may require Congressional action, through a […]

U.S. Chamber Requests Guidance on Several TCJA Provisions

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The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations, recently submitted a letter to the IRS a requesting clarification and guidance on the provisions of the Tax Cuts and […]