Tax News Archives - Page 13 of 28

Oct
22
2018

Where to get answers to questions on the new employer tax credit for paid family and medical leave

Do you have questions on the new employer tax credit for paid family and medical leave? If so, see the IRS’s new Q&As on the credit: https://bit.ly/2IKNIWU. The IRS published the Q&As after issuing guidance on the credit in Notice 2018-71. For wages paid in tax years starting in 2018 and 2019, eligible employers can claim a general business credit equal to the “applicable percentage” of the amount of wages paid to “qualifying employees” during any period in which such employees are on “family and medical leave.” The Q&As define many of the terms.

Oct
17
2018

You might save tax if your vacation home qualifies as a rental property

If you own a vacation home and both rent it out and use it personally, classification as a rental property might save tax. Expenses attributable to a rental property aren’t subject to the TCJA’s tightened limits on itemized deductions for property tax and mortgage interest, and losses may be deductible. A rental property generally is one you use for 14 days or less, or under 10% of the days you rent it out,

Oct
15
2018

Fore!

Fore! An easement on a golf course fails to serve a conservation purpose. The U.S. Tax Court has ruled that a partnership that operated a golf club on its property wasn’t entitled to a conservation contribution deduction because it failed to satisfy the conservation requirements. The partnership argued that the easement area provided a habitat for several species of conservation concern. However, the court concluded there wasn’t a sufficient presence of rare or endangered species in the area to satisfy the conservation purpose requirement.

Oct
12
2018

IRS Announcement – Employer Reimbursements

The IRS announces that employer reimbursements in 2018 for qualifying pre-2018 employee moves are tax-free. Clarifying the effects of the Tax Cuts and Jobs Act (TCJA), the IRS states that employer payments in 2018 for employee moving expenses incurred prior to 2018 are excluded from the employee’s wages for tax purposes. The IRS notes that, because the TCJA was passed at the end of 2017, individuals who relocated in 2017 but didn’t receive payment until 2018 wouldn’t have anticipated that the payments were taxable.

Oct
11
2018

Business Meals

Is that still deductible? The Tax Cuts and Jobs Act generally eliminated the business deduction for entertainment expenses but not meal expenses. As long as certain conditions are met, taxpayers can still deduct 50% of the cost of business meals. The IRS issued Notice 2018-76 spelling out the five conditions. The expense must be “ordinary and necessary;” the taxpayer (or an employee) must be present at the meal; the meal can’t be lavish;

Oct
10
2018

IRS2Go Mobile Phone App

Want to get tax information from the IRS on your mobile phone? The tax agency has a mobile app that is available for use on any iOS or Android device. The free app, called IRS2Go, allows taxpayers to make payments from their bank accounts or through credit or debit cards. You can also check the status of a refund and get tax tips and other information. Visit https://bit.ly/2BTAVhB for more details.

Oct
08
2018

U.S. Tax Court ruling on carryover loss deduction

The U.S. Tax Court rules that a married couple isn’t entitled to a carryover loss deduction for purported wage payments made by the husband’s company. The husband claimed that former employees of a TV station where he used to work, and where he started developing a Web platform for artist promotion, came to work for his new LLC. But the court stated the husband had failed to provide any proof as to the number of employees,

Oct
05
2018

IRS Issues Warning about Hurricane Relief Charities

The IRS issues a warning: Ensure Hurricane Florence relief charities are legitimate. The IRS is cautioning those who want to make charitable contributions to storm victims to avoid the scams that often follow major disasters. The tax agency recommends using its search feature, “Tax Exempt Organization Search,” on the IRS website, to help find or verify qualified charities. Also, make contributions only by check or credit card and don’t provide personal information, such as a Social Security number.

Oct
04
2018

IRS Alerts Veterans about Tax Credit

The IRS is alerting certain veterans that they may be due a tax credit or refund. The 2016 Combat-Injured Veterans Tax Fairness Act affects veterans who received disability severance payments after 1/17/91, and were improperly taxed on the amounts on their federal tax returns. To recover the taxes, these veterans must file Form 1040X, “Amended U.S. Individual Income Tax Return.” They can submit claims based on the actual disability severance payments, or use a simplified method to claim refunds.

Oct
02
2018

There Will Be a New Revised 8233 Form

The IRS has updated its nonresident alien withholding exemption form. A revised Form 8233, https://bit.ly/2NUjxCR, was recently released to reflect changes in the Tax Cuts and Jobs Act. Compensation paid to nonresident aliens for independent personal services performed in the U.S. is generally subject to a 30% withholding rate, or to graduated tax rates. However, some payments are exempt due to tax treaties. Form 8233 is used to request an exemption. Nonresident alien students,