In August, the IRS released its proposed regulations governing Section 199A of the tax code. That’s the section that created the 20-percent deduction that applies to S corporations and other pass-through entities. I’m glad to report that the new regulations contain some very good news… The reasonable compensation the S corporation pays its shareholder-employees are … [Read more...]
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TCJA: Convert Personal Vehicle to Business and Deduct up to 100%
Now is the time to convert! Not your religion. Your vehicle. You see, thanks to the Tax Cuts and Jobs Act, when you convert your personal vehicle to a business vehicle, you could save a lot of money. In fact, upon conversion, you can instantly qualify for a 100-percent deduction on the fair market value of your personal vehicle. Want to find out more about how to use … [Read more...]
Did goodwill take a hit under tax reform?
The Tax Reform and Jobs Act changed the tax treatment of certain self-created intangible property. This leads to an important question. Does tax reform affect goodwill created or acquired in a business? Some say that the value of goodwill, when a business is sold, could now be considered ordinary income. If so, this could create a huge tax-hit for S and C corporation owners … [Read more...]
How to deal with the qualified improvement property snafu
As part of the Tax Cuts and Jobs Act, Congress created the qualified improvement property category. It was intended to let you fully expense qualified property with bonus depreciation. Unfortunately, Congress made a drafting error in the law which means you can’t use bonus depreciation for qualified improvement property. But don’t let that get you down. We’ll explain how … [Read more...]
What tax reform did to your tax-free “supper money”
It’s a sad fact… The Tax Cuts and Job Act took a big bite out of a bunch of valuable business-meal and entertainment deductions. One really nice one that that took a 50-percent hit was the “supper money” deduction. What is that? It’s the fringe benefit that lets you provide your employees (and yourself!) with tax-free meal money when you’re working late. That’s right. … [Read more...]