Making loans to your corporation became a lot more hazardous back in 1986 thanks to the Tax Reform Act passed that year. But you ain’t seen nothin’ yet… The new Tax Cuts and Jobs Act makes things far worse for tax-years 2018 through 2025! We’ll tell you exactly what lawmakers did when you read my new article titled Tax Tips: TCJA Tax Reform Creates Big Hazard in Loans to … [Read more...]
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IRS updates defined wages for new Section 199A tax deductions
If you want to take advantage of the new 20-percent tax deductions under tax code Section 199A, you need to follow certain important IRS rules. For example, you’ll need to calculate your business’s W-2 wages if they meet certain important criteria. What exactly are they? How can you comply with the law and stay out of the IRS’s gun sights? You’ll find out when you read … [Read more...]
IRS Section 199A Final Regs Shed New Light on Service Businesses
Here’s more good news from Uncle Sam… The IRS issued final Section 199A regulations that contain some hew and very favorable provisions for out-of-favor specified service trades and businesses. A nice feature of the new regulations are the de minimis rules that allow you to break your out-of-favor business into two or more businesses for the purpose of successfully … [Read more...]
Tax reform’s new Qualified Opportunity Funds. Helpful or hype?
The Tax Cuts and Jobs Act created a new tax-planning strategy called “Qualified Opportunity Funds.” It was designed to provide a new qualified-opportunity-fund tax-deferral strategy that can also eliminate some capital gains and make others tax-free. Our take on qualified opportunity funds? We believe they do provide an ability to defer (and possibly eliminate) some … [Read more...]
Deductions for defunct S corporation expenses
Let’s say you closed your S corporation in 2016. Let’s also assume that you incurred unexpected expenses from your defunct S corporation in 2017 and 2018. Finally, let’s stipulate that you personally paid for them as the S corporation’s president and sole shareholder. Now comes the big question… Can you deduct those expenses? Now comes the big answer… Nope. You’re out … [Read more...]