Are you going through a divorce or thinking about ending your marriage? If you are, I urge you to consider the important tax consequence you’ll face. Thanks to the Tax Cuts and Jobs Act (TCJA), those consequences have changed for tax-years 2018 and later. As a small business owner, what do you need to know in order to emerge from a divorce with the most favorable tax … [Read more...]
Tax Policy
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New Individual Coverage HRA Turns the Clock Back To Pre-ACA Health Care Options
It’s a fact. The Affordable Care Act (ACA) destroyed many benefits provided by the Section 105 medical reimbursement plan. To rectify this, the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), introduced in 2017, did help to some extent. How? By letting employers with fewer than 50 employees, reimburse certain health care costs up to a set limit … and … [Read more...]
New Partnership Audit Procedures For 2019
Howdy partner! If you run your business as a partnership, or an LLC taxed as a partnership, there are some important things you need to know. For starters, you should be aware that Congress changed the IRS procedures for auditing partnerships. These new procedures take effect beginning with your 2018 partnership tax return. Under the new rules, an audit can lead to a … [Read more...]
Use Our New 2019 Section 199A Calculator
As you probably know, (especially if you’re a reader of the Tax Reduction Letter!), the Tax Cuts and Jobs Act created a 20-percent tax deduction for many business owners. Do you qualify for this extremely valuable deduction? The answer depends on a number of factors that you’ll need to calculate. Yes. You can make these complex calculations by hand or with tax preparation … [Read more...]
Q&A: Do I Get a 199A Deduction Working Abroad?
Do you live and work abroad? If you do, you’ll want to know if your business-income qualifies for the new 20-percent Section 199A tax deduction. Sadly, we don’t have great news for you. However, if you play your cards right, and review the strategies explained in this article, it’s very possible that you won’t owe much tax to Uncle Sam. What issues will you have to … [Read more...]