For 2018–2025, the TCJA tax reform changes the kiddie tax rules to tax a portion of an affected child’s or young adult’s unearned income at the federal income tax rates paid by trusts and estates. Trust tax rates can be as high as 37 percent or, for long-term capital...
Business rent payments to your landlord are reported on IRS Form 1099-MISC, which is due January 31. For the 1099-MISC, do you simply look at your checkbook or payment ledgers to identify the amounts you are going to report? If so, you will create an incorrect 1099...
The Section 199A tax deduction is complicated, and many questions remain unanswered even after the IRS issued its proposed regulations on the provision. And to further complicate matters, there’s also a lot of misinformation out there about Section 199A. Below are...
If you have a bad year in your business, the new net operating loss (NOL) rules are designed to stop you from using your business loss to find some immediate cash. The new (let’s call them bad-for-you) rules certainly differ from the prior beneficial rules. Old...
Tell Me about the Cliff You have two opportunities to go off the cliff. The first opportunity applies to every passthrough business that pays no W-2 wages. Let’s say you are married filing a joint return, own no qualifying property, and pay no W-2 wages in your...
If you are a high earner AND not in the out-of-favor specified service trade or business group, you may want to consider operating as an S corporation to qualify for the new Section 199A 20 percent tax deduction. If you currently file as a Schedule C taxpayer because...
