Tax News

Important Changes for 2019 Tax Returns. Are You Ready?

Article Highlights:

  • Medical Threshold

  • Electric Vehicle Credit Phaseout

  • Alimony

  • Finalization of State and Local Tax Deduction Limitation

  • Federal Penalty for Not Being Insured Eliminated & New California Tax Penalty Added

  • Seniors’ Special Tax Form

  • Family and Medical Leave Credit

  • Inflation Adjustments

Facing a Huge Gain from a Real Estate Sale?

Article Highlights:

  • Adjusted Basis 

  • Passive Loss Carryovers 

  • Installment Sale 

  • Tax-Deferred Exchange 

  • Tax on Net Investment Income 

  • Home Sale Exclusion

Important - Rental Owners!
Guidance Related to the 20% Pass-Through Deduction

Article Highlights:

  • 199A 20% Pass-Through Deduction

  • Rental Safe Harbor Qualifications

  • Books & Records

  • 250 Hours

  • Contemporaneous Record

  • Triple Net Leases

  • Vacation Home Rentals

  • Double-Edged Sword

What Are My Chances of Being Audited and How Can I Reduce Them?

First, don’t panic. Audits are relatively rare, as fewer than 1% of taxpayers grouped by income level will get that dreaded notice on IRS letterhead.

To cut to the point right away, your chances are being audited by the IRS are quite slim. There are often many red flags that are likely to trigger an audit, but even then, you’re still more likely to get an examination notice than an actual field audit in which an IRS agent shows up at your door demanding to examine your workspace and files.

Reasons Why Your Small Business Needs 
an Employee Identification Number

Entrepreneurs often shrug off the idea of obtaining an employee identification number, or EIN, believing that their small business really doesn’t need one. Though there are some cases where a solo business can get away with merely utilizing the business owner’s Social Security Number, doing so is not necessarily the best idea, even if you don’t have plans to hire employees in the future. In almost all instances, having an EIN is a good idea. It provides many benefits that go beyond facilitating the payment of employees.

 

Big Tax Changes for Divorce Decrees after 2018

Article Highlights:

  • Pre-2019 Alimony

  • Post-2018 Alimony

  • Definition of Alimony

  • Alimony and IRA Contributions

  • State Treatment of Alimony

Unforced Errors - The 8 Most Common IRS Tax Penalties and How to Avoid Them

You know the old line about the inevitability of death and taxes? It’s still true. What isn’t inevitable, however, is the need to pay penalties to the IRS. It happens, but it doesn’t have to, and the main reason that it does is because taxpayers don’t educate themselves about the rules. When you get hit with an IRS penalty, it adds on to a number that you already wish you didn’t have to pay.

 

To ensure that you get through tax season without unnecessary costs and aggravation, here’s a list of the tax penalties that the IRS most frequently assesses against taxpayers.

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