Uncategorized – TaxMedics

How Tax Reforms Hurt Personal Casualty Loss Deductions

The Tax Cuts and Jobs Act (TCJA) makes claiming a taxdeduction for a personal casualty loss more difficult. Forlosses incurred in 2018-2025, the TCJA generally eliminates deductions forpersonal casualty losses, except for losses due to federally declared disasters. Special Deduction Timing Election for Losses Due to Federally Declared Disasters When your casualty loss is due …

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Can A Statutory Employee Qualify For the 199A Tax Deduction?

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IRS Notice 2018-64 states that monies paid to statutory employees are not wages for Section 199A in spite of the fact that those monies go on the W-2 because they are subject to FICA. This is good news for a life insurance agent. In tax law, the statutory employee is an independent contractor under the …

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Your Business Loss after Tax Reform-5 Strategies Not To Waste It

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Tax reform made a lot of good changes in the tax law for the small-business owner. But the changes to the net operating loss (NOL) deduction rules are not in the good-changes category. They are designed to hurt you and put money in the IRS’s pocket. Now, if you have a bad year in your …

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Tough Question: Do Triple-Net Leases Qualify for a 199A Deduction?

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If you use triple-net leases for your rental properties, you may wonder whether you’ll get your Section 199A deduction. We don’t have a clear answer for you, so we are going to go with “maybe.” As you’ll see, we need more information. Definition: Triple-Net Lease A triple-net lease requires the lessee to pay the landlord …

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Our Updated View for IRS and Deducting Business Meals with Clients and Prospects

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Here’s the updated strategy: deduct your client and business meals as if tax reform never took place. Wow. Is this aggressive? Not if: the IRS comes out with regulations that follow a model set by the American Institute of CPAs, or the Joint Committee on Taxation in its explanation of the Tax Cuts and Jobs …

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IRS Clarifies Reasonable Comp. for S Corp. Owner’s

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The new IRS proposed regulations confirm that the S corporation treats as wages the reasonable compensation that it pays to its shareholder-employees. That’s good, and it opens planning opportunities. Even better! There had been some commentators who claimed that wages of an S corporation did not count for the Section 199A wage calculation or that …

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IRS Issues New 199A Clarifications

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The IRS issued 184 pages of regulations clarifying the new 20 percent Section 199A deduction. One big deal in the new regulations is a significant narrowing of the out-of favor reputation and skill group. Other big deals are the clear definitions that apply to various professions. The IRS did many businesses a huge favor with these …

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Under New IRS Regs: Does Your Rental Qualify for a 199A Deduction?

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The IRS, in its new proposed Section 199A regulations, defines when a rental property qualifies for the 20 percent tax deduction under new tax code Section 199A. One part of the good news on this clarification is that it does not require that we learn any new regulations or rules. Existing rules govern. The existing …

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S-Corporation Fringe Benefits After Tax Reform

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Fringe benefits are usually a good thing—but there’s a catch when you own more than 2 percent of an S corporation. The good news? Federal tax law allows the cost of these fringes as deductible expenses for your S corporation. The bad news? You, the shareholder-employee who owns more than 2 percent, may suffer additional …

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Tax Reform Offers Much to Help Your Rental Real Estate

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The recent tax reform, known as the Tax Cuts and Jobs Act (TCJA), added some good benefits to your real estate rentals, both commercial and residential. Notably, your qualified business income from your real estate rentals creates a possible 20 percent tax deduction with no effort on your part. And if you want less taxable …

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