Your tax reform’s 199A deduction doesn’t arrive on a silver platter compliments of the IRS. No. You have to calculate the deduction yourself, and to do so you need to receive complete and accurate K-1 information. But what happens if the pass-through entity doesn’t provide the complete, necessary information you require? (And by the way, this happens far more often than … [Read more...]
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TCJA Planning: Terminating Your S Corporation Election
The Tax Cuts and Jobs Act (TCJA) may get you thinking about whether it makes sense to change your form of business entity. Maybe you’re considering turning your S corporation into a C corporation, partnership, or sole proprietorship. If you’re currently running a C corporation, you’ll have to terminate it and elect to switch to another form of business entity. How do … [Read more...]
IRS saves many vehicles from the TCJA bonus depreciation debacle
Do you own a tax-law-defined luxury automobile, crossover vehicle, pickup truck, or sport utility vehicle? If you do, this issue of the Tax Reduction Letter makes “must” reading. Why? Because the Tax Cuts and Jobs Act lets you deduct 100-percent of the cost of qualifying assets. It makes one major exception. I’m talking about the $8,000 bonus depreciation cap that … [Read more...]
TCJA One Way to Deduct Personal Vehicle Used for Corporate Business
Do you operate your business as a corporation? Do you own your business car personally? If both answers are “yes,” be aware that thanks to the Tax Cuts and Jobs Act, employee business expenses are not deductible for tax years 2018 through 2025. This means you can’t claim vehicle deductions as employee business expenses. So, are you out of luck? No. If you want … [Read more...]
Is a Triple Net Lease to a C Corporation Qualified Business Income?
Consider this scenario… You operate your professional practice as a C corporationYour spouse rents your office to your C corporation on a triple net lease The important question you need to consider is, does your spouse qualify for the Section 199A deduction on the rental income? If this scenario applies to your situation and you’re looking for answers to the Section … [Read more...]