Joint Committee on Taxation Addresses the QBI Deduction

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One of the most discussed provisions of the Tax Cuts and Jobs Act (TCJA), which was enacted in December 2017, is the addition of the Qualified Business Income (QBI) deduction available under new Internal Revenue Code §199A. This provision allows equity owners of qualifying pass-through entities to deduct up to 20% of the qualifying business […]

State and Local Tax Refunds & the Tax Benefit Rule

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In years prior to 2019, and the enactment of the Tax Cuts and Jobs Act (TCJA), taxpayers were accorded an “unlimited” federal income tax deduction for all state and local income taxes as well as real estate taxes, if they were able to itemize deductions. In those instances when the state and local income taxes […]

Analyzing the TCJA’s Impact on States

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Not subject to as much media attention as federal income tax legislation, the state impacts resulting from the enactment of federal legislation always poses budgetary challenges for leadership in those jurisdictions. Oftentimes, federal income tax incentives, such as accelerated and bonus depreciation, can prove unduly costly for states whose income tax regimes are predicated upon […]

Final “Corrected” Treasury Regulations Released on QBI Deduction

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The Internal Revenue Service (IRS)  has released corrected final regulations on the new Qualified Business Income (QBI) deduction under Internal Revenue Code (IRC) section 199A. Included in these revised regulations are various corrections to the definition and computation of excess IRC section 743(b) basis adjustments, a correction to the description of a disregarded entity for […]

Tax Reform 2.0 on the Way?

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As reported in a previous post, the House Ways and Means Committee released three tax bills, referred to as “Tax Reform 2.0,” in late August. All three bills were approved by the House at the end of September. The passage of these bills is the next step toward making additional substantial changes to the already […]

Deductibility of Business Meals after the Tax Cuts and Jobs Act

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As we have posted previously, the Tax Cuts and Jobs Act (TCJA) made changes to the business expense deduction for meals and entertainment. The TCJA disallowed the deduction for expenses related to activities generally considered to be entertainment, amusement or recreation, that were incurred in years beginning after December 31, 2017. However, in most cases, taxpayers […]

IRS Releases Draft Instructions for 2018 Form 1040

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With simplicity seemingly in the eyes of the beholder, the Internal Revenue Service (IRS) released the 100+ pages of Draft Instructions for the 2018 Form 1040, U.S. Individual Income Tax Return. The IRS released a draft of the 2018 Form 1040 and six accompanying schedules in June. The instructions note that the IRS generally does not […]