The Tax Cuts and Jobs Act (TCJA) includes several changes that affect partnerships and their partners, and LLCs that are treated as partnerships for tax purposes and their members. Most of the changes are good news. Here are some highlights: Technical Termination Rule Repealed (Good) Under prior law, a partnership or an LLC treated as […]
Tax Reform Changes Affecting Partnerships and LLCs and Their Owners Read More »
Often in an IRS audit, the examiner will ask for your mileage log at the beginning of the audit. If you do not have a mileage log, you are in what former presidential candidate Ross Perot called deep doo-doo. Think about it. If you don’t have a log for mileage, what is the IRS going
IRS Auditor Doesn’t Know the 90-Day Mileage Log Rule Read More »
If your property qualifies as a “residence,” you face the strictest limits of the vacation home rules. Your property is a “residence” if you use the rental property for personal use for more than the greater of 14 days in the year or 10 percent of the days during the year in which you rent
Technique That Increases Deductions on Your Vacation or Other Home Read More »
The days when you could convert your rental property or vacation home to a principal residence and then use the full $250,000/$500,000 home-sale exclusion to avoid taxes are gone. Here’s how the $250,000/$500,000 exclusion works today. You must divide your period of home ownership into two categories—qualified and non-qualified use: Qualified use means the time
Does Non-Home Use of Your Home Damage Your $250,000 Exclusion? Read More »
When you convert your existing traditional IRA into a Roth IRA and then reverse the transaction by switching the account back to traditional IRA status, the reversal is called a recharacterization in IRS-speak. If you had a sizable accumulation in your traditional IRA, the ability to convert that traditional IRA to a Roth IRA and
Be Alert to the New Tax Reform Attack on Roth IRA Recharacterizations Read More »
Here’s how the Tax Cuts and Jobs Act (TCJA) applied its tax reform to your supper money meal allowance and the four rules that give you the tax deduction. Before tax reform, you deducted 100 percent of the supper money cost. Now, because of tax reform, your tax deduction for supper money is subject to
What Did the New Tax Plan Do to Your Tax-Free Supper Money? Read More »
The recently enacted Tax Cuts and Jobs Act (TCJA) has altered the tax landscape for a lot of individuals and businesses. The changes are extensive and this letter provides a high-level overview of some of the highlights to keep you informed. Due to the sweeping nature of the changes and the need for continued guidance,
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