Beware the Ides of March — if you own a pass-through entity
Shakespeare’s words don’t apply just to Julius Caesar; they also apply to calendar-year partnerships, S corporations and limited liability companies (LLCs) treated as partnerships or S corporations for tax purposes. Why? The Ides of March, more commonly known as March 15, is the federal income tax filing deadline for these “pass-through” entities. Not-so-ancient history Until […]
Leveraging charitable giving under the TCJA
The Tax Cuts and Jobs Act (TCJA) brought about sweeping changes for organizations of all types, including not-for-profits. Concerns have arisen that the TCJA would negatively impact charitable giving programs due to decreased tax benefits to donors. So what tax benefits are still available that development departments can discuss with donors? To simplify the Form […]
3 big TCJA changes affecting 2018 individual tax returns and beyond
When you file your 2018 income tax return, you’ll likely find that some big tax law changes affect you — besides the much-discussed tax rate cuts and reduced itemized deductions. For 2018 through 2025, the Tax Cuts and Jobs Act (TCJA) makes significant changes to personal exemptions, standard deductions and the child credit. The degree […]
Opportunity Zones: A Hidden Tax Reform Gem Q&A
At Clark Schaefer Hackett we’ve been digging deep to uncover some of the lesser known opportunities businesses can benefit from and we found just that under the newly established IRC Section 1400Z. Considered by many as a hidden jewel, this provision includes a new incentive designed to spur economic growth in low-income communities. Taxpayers throughout […]
Review of Construction Contract Accounting Rules in Light of Tax Reform
One significant alteration under the Tax Cuts and Jobs Act is the change in the definition of a “small contractor.” The requirement to account for revenue and cost of revenue on long-term contracts using the percentage of completion method has been loosened. For years beginning after 2017, contractors whose average annual gross receipts are less […]
IRS provides QBI deduction guidance in the nick of time
When President Trump signed into law the Tax Cuts and Jobs Act (TCJA) in December 2017, much was made of the dramatic cut in corporate tax rates. But the TCJA also includes a generous deduction for smaller businesses that operate as pass-through entities, with income that is “passed-through” to owners and taxed as individual income. […]
IRS waives 2018 underpayment tax penalties
The IRS has some good news for certain taxpayers — it’s waiving underpayment penalties for those whose 2018 federal income tax withholding and estimated tax payments came in under their actual tax liabilities for the year. The waiver recognizes that the Tax Cuts and Jobs Act’s (TCJA’s) overhaul of the federal income tax regime made […]
The New Audit Rules are here. Is your partnership ready?
Ready or not, new audit rules relating to the Centralized Partnership Audit Regime are now in effect. As a result, decisions need to be made for preparation and filing of a partnership’s 2018 income tax return to occur. But what is the Centralized Partnership Audit Regime and what is the impact? The background The 2015 […]
Federal government shutdown creates tax filing uncertainty
The IRS has announced that it will begin accepting paper and electronic tax returns for the 2018 tax year on January 8 for business tax returns and January 28 for individual tax returns, but much remains to be seen about how the ongoing shutdown of the federal government will affect this year’s filings. Although the […]
2 major tax law changes for individuals in 2019
While most provisions of the Tax Cuts and Jobs Act (TCJA) went into effect in 2018 and either apply through 2025 or are permanent, there are two major changes under the act for 2019. Here’s a closer look. 1. Medical expense deduction threshold With rising health care costs, claiming whatever tax breaks related to health […]