If your tax refund is less than you anticipated, you are not alone. In a report issued by the Treasury Department on February 14, the average refund it is paying in 2019 has dropped to $1,949 from $2,135 in the prior year. In addition, the number of returns filed so far has dropped from 13.5 million last year to 11.4 million this year for the same period.
BHT&D Certified Public Accountants Blog
Ever since tax reform was passed, over a year ago, taxpayers have been uncertain whether rental property will be classified as a trade or business for purposes of qualifying for the new IRC Sec 199A 20% pass-through deduction (commonly referred to as the 199A deduction).
Finally, on January 18, 2019, the IRS issued a notice which provided “safe harbor” conditions under which a rental real estate activity will be treated as a trade or business for purposes of the 199A deduction.
It’s important to note that this notice prescribes several conditions that must be met for a rental real estate enterprise (a tax term introduced by the IRS in this notice) to be deemed to be a trade or business and eligible for the section 199A 20% deduction. For purposes of this safe harbor, a rental real estate enterprise is defined as an interest in real property held for the production of rents and may consist of an interest in multiple properties.
Alimony is the term used for payments to a separated spouse or ex-spouse as part of a divorce or separation agreement. Since 1985, to be alimony for tax purposes, the payments:
- Must be in cash, paid to the spouse, ex-spouse, or a third party on behalf of a spouse or ex-spouse;
- Must be required by a decree or instrument incident to a divorce, a written separation agreement, or a support decree;
If you are a business owner who is accustomed to treating clients to sporting events, golf getaways, concerts and the like, we have some bad news for you. The GOP’s tax-reform bill that President Trump signed on December 22nd of last year eliminated the business-related deduction for entertainment, amusement or recreation expenses, effective beginning in 2018.
One of the first trouble spots of the new tax reform is the W-2 withholding for 2018. Passage of the new law in late December hasn’t given the IRS much time to develop new withholding tables. This can be a big issue, as the recent Tax Cuts & Jobs Act (TCJA) substantially altered the tax rates and standard deductions, did away with exemption deductions, and increased the child tax credits—all elements of how the withholding allowances and tables have been structured in the past.
The Tax Cuts and Jobs Act was signed into law on December 22, 2017. This law means significant changes for both individuals and businesses. While all changes are not listed below, it does include a good summary of the legislation that could impact you or your business. Most changes will take effect for 2018 – those with an effective date other than 2018 have been noted:
The House’s proposed Tax Cuts and Jobs Act was released on November 2, 2017. The Senate version of the bill was recently released with some substantial modifications to the House proposal. While not law, here are a few highlights of the Senate’s version of the bill:
The proposed Tax Cuts and Jobs Act was released on November 2, 2017. While not law, there are some rather dramatic changes being suggested. The goal is to provide the “middle class” with tax savings. A few of the more important items being discussed: