Recently the IRS released additional guidance on a large number of issues related to the Qualified Business Income (QBI) Deduction (Section 199A). This deduction allows certain taxpayers who have flow thru businesses (S Corporations, partnerships, sole proprietorships) to take a 20% deduction on the related income. To qualify, the activity has to rise to the […]

2019 New Partnership Audit Rules Blog A long, long time ago (well, 2015), a Republican Congress enacted and President Obama signed the Bipartisan Budget Act of 2015. One feature of that legislation was the enactment of new IRS audit rules for partnerships. The effective date was set as January 1, 2018. Now, with preparation of […]

The 2017 Tax Act (formally, the Tax Cuts and Jobs Act) will have indirect and direct impacts in family law cases. The following (except alimony) are effective January 1, 2018. 1. Tax Rates: Most tax brackets have been reduced and the income range within each tax bracket has been widened, so effectively almost all taxpayers […]

September 19, 2018 The Tax Cuts and Jobs Act enacted one of the most significant tax deductions in history for small businesses. New Section 199A creates a deduction for many owners of sole proprietorships, partnerships, trusts and S corporations of up to 20% of their qualified business income (QBI). The deduction is available for tax […]

June 28, 2018 In a 5-4 vote and an opinion written by Justice Kennedy on June 21, 2018, the US Supreme Court decided South Dakota v. Wayfair, Inc.  Basically, this opinion states that physical presence is not a necessary requirement in determining nexus rules (i.e. whether a business has a connection to a state). The […]

February 1, 2018 The Tax Cuts and Jobs Act (TCJA) made substantial changes to the income tax rules for the deduction of entertainment expenses and meal expenses. These changes are effective for amounts incurred or paid after December 31, 2017, regardless of the taxpayer’s tax year. We encourage businesses to consider how their record keeping […]