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...]
Legislation
Sorted by Date
Employee Recreation and Parties Survive TCJA Tax Reform
Here’s some good news about the Tax Cuts and Jobs Act (TCJA)… The TCJA has retained the 100-percent tax deduction for qualified employee parties and qualified employee entertainment facilities. Interestingly, if you provide a meal for your employees during a training program, you can deduct only 50-percent of the cost. But if you know the rules, you can take your … [Read more...]
How to Calculate and Improve Your QBI from a Partnership
It’s great to be able to claim the Section 199A deduction. It’s not so great trying to calculate the deduction. Frankly, it’s a bear. In order to clarify things, we’ll explain how the Section 199A qualified business income (QBI) calculation works in the case of a general partner who had guaranteed payouts for services and health insurance premium payments. If you are … [Read more...]
Tax reform creates huge hazards when you loan money to your corporation
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...]
The IRS issues final Section regulations and defines QBI
Good news! The IRS has finalized its regulations of Section 199A of the tax code. Which means you may be eligible for a tax deduction worth up to 20-percent of your qualified business income (QBI)! With the issuance of this final version of the rules, Uncle Sam has provided a clear definition of your qualified business income so you can now file your tax return standing on … [Read more...]