The Tax Reform Act of 2018 limited the amount an individual who itemizes deductions can deduct for state income taxes and real estate taxes to $10,000. For example, if you paid $8,000 in state income taxes and $7,500 in real estate taxes, you may only deduct $10,000 on your individual … Continued
For tax years that begin after Dec. 31, 2017 and before Jan. 1, 2026, noncorporate taxpayers that meet certain requirements may claim an income tax deduction under Code Sec. 199A of 20% of their “qualified business income” (QBI) from a partnership, S corporation, or sole proprietorship. Code Sec. 199A allows … Continued
The Department of the Treasury and the IRS proposed regulations this week that would clarify the relationship between state tax credits and federal rules regarding charitable contribution deductions. Under the proposed regulations, a taxpayer’s allowed federal charitable contribution deduction would be required to be reduced by the amount of any … Continued
Oklahoma “Opportunity Zone” Incentive
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The new tax law has created a method of tax savings by providing tax benefits to taxpayers who reinvest capital gains into vehicles called Qualified Opportunity Funds. These funds hold at least 90% of their assets in Qualified Opportunity Zone Property, which is property in low-income communities. If taxpayers take … Continued
This month, the IRS will begin implementation of new procedures affecting individuals with “seriously delinquent tax debts.” These new procedures implement provisions of the Fixing America’s Surface Transportation (FAST) Act, signed into law in December 2015. The FAST Act requires the IRS to notify the State Department of taxpayers the … Continued
Layman’s version of Deduction for Qualified Business Income of an Individual under Sec. 199A The Qualified Business Income tax deduction gives the owners of pass-through businesses like sole proprietors, partnerships, S corporations and real estate investors a deduction equal to 20% of qualified business income. What is Qualified Business … Continued
‘Tis the season of employee rewards and bonuses. Below is a quick guide for the tax consequences of gift giving: Bonuses Year-end bonuses are subject to the same payroll taxes that an employee’s normal pay is subject to. This includes all federal and state withholding requirements and the … Continued
Holders of Employee Incentive Stock Options
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An employee stock option is a contract that gives employees the right to buy a certain amount of the company’s stock at a predetermined exercise price after a specified vesting period. The exercise price is normally the fair market price of the stock at the time the option is granted, … Continued
Previously, the IRS announced that they were testing new expanded criteria for streamlined installment agreements. This expanded criteria allowed previously unqualified taxpayers to qualify for the streamlined process. This test was set to run through September 30, 2017. The IRS has now extended the testing period to run through September … Continued
In a recent Revenue Procedure, the IRS has provided a permanently available simplified method for estates to obtain an extension of time to make the estate tax portability election. The simplified method is only available to estates that are not required to file an estate tax return based on the … Continued