Five types of interest expense, three sets of new rules - The Tax …
Oct 1, 2018 · EXECUTIVE SUMMARY : Individual taxpayers are subject to different rules for deducting different types of interest expense. The five primary types of interest for individual taxpayers are student loan interest, qualified residence indebtedness interest, investment interest, business interest, and personal interest.
Service businesses that qualify for the 20% QBI deduction
Dec 1, 2018 · One major provision of the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, is a new tax deduction for passthrough entities (S corporations, partnerships, and sole proprietorships) under Sec. 199A.The deduction generally provides owners, shareholders, or partners a 20% deduction on their personal tax returns on their qualified business income (QBI).
Using the First-Time Penalty Abatement Waiver - The Tax Adviser
I t is safe to assume that most taxpayers dislike paying taxes and hate paying IRS penalties, especially when the penalties seem unjust. While penalties can also seem arbitrary to taxpayers, IRS policy is clear and deliberate on their reason for existence: to deter taxpayer noncompliance, not to generate revenue. 1
Electing S status by an LLC - The Tax Adviser
Apr 1, 2020 · Learn how an LLC can elect to be taxed as a corporation and then as an S corporation by filing Form 2553 and Form 8832. Find out the eligibility requirements, effective dates, and planning tips for making the S election.
Summary of tax rules for liquidating corporations - The Tax Adviser
Oct 1, 2020 · Editor: Mark Heroux, J.D. Domestic corporations, either S corporations or C corporations, are liquidated by applying Secs. 331-346. This discussion provides a review of the rules that apply to liquidating corporations, but it does not address the exceptions set forth in Sec. 361 via a reorganization plan or the exceptions arising from having foreign liquidating corporations or …
QBI deduction: Interaction with various Code provisions - The Tax …
Dec 1, 2020 · Learn how Sec. 1231 gain affects the qualified business income (QBI) deduction of Sec. 199A, which can reduce taxable income for individuals, estates, and trusts. Find out how to net, allocate, and track Sec. 1231 gain and loss, and how to handle Sec. 1231 (c) recapture and loss disallowance provisions.
Back to the Basics: Common Gift Tax Return Mistakes - The Tax …
EXECUTIVE SUMMARY Donors report gifts subject to the gift tax and gifts subject to the generation-skipping transfer (GST) tax on Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. The proper reporting of gifts on Form 709 depends on a number of factors, including the type of gift, who the gift is given to, and whether the gift
Transnational tax information reporting: A guide for the perplexed
Mar 1, 2018 · Learn about the complex federal laws and forms for reporting foreign income and transactions. Find out when and how to file Form 5472, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, and other transnational tax information returns.
Understanding the new Sec. 199A business income deduction
Apr 1, 2018 · Sec. 199A allows taxpayers other than corporations a deduction of 20% of qualified business income earned in a qualified trade or business, subject to certain limitations. Learn the definition, computation, and application of this new provision, as well as the areas of uncertainty and controversy it has created.
Publicly traded partnerships: Tax treatment of investors - The Tax …
Apr 1, 2019 · Learn how publicly traded partnerships (PTPs) are taxed differently from corporations and how to report them on your tax return. Find out the advantages and disadvantages of investing in PTPs and the complexities …