• Sub S Basis Reporting 2018 Forward

    2018 Form 1040 U.S. Individual Income Tax Returns that have an S Corporation K-1 are required to check a box on line 28 of Schedule E to attach a basis computation.  This applies to corporations reporting a loss, stock disposal, receive a loan repayment or DISTRIBUTION! […]Read More… from Sub S Basis Reporting 2018 Forward

  • RMD Missed?

    RMD (Required Minimum Distribution) if not timely made is subect to a 50% non-deductible penalty!  YES, 50% If you can show cause (illness, bad advice, the broker/banker screwed up) and that you took steps to comply just follow the instructions on Form 5329 and attach a letter of explanation.  The penalty will be due only if IRS denies…

  • 1099 Reporting Requirement

    Any individual to whom you pay $600 or more in a calendar year should receive a 1099. If you pay MARY JONES INC…. that is not an individual so no 1099. If you pay MARY JONES, that would require a 1099. And, only businesses are required to generate the 1099. The home you rent out…

  • 2019 Charitable Donations

    Taxpayers aged 70 1/2 (and older) can make Donations of up to $100,000 DIRECTLY from an IRA to a 510(c)(3) charity. You don’t get your hands on the money… it goes DIRECT. This QCD (Qualified Charitable Distribution) is NOT TAXABLE but it DOES COUNT toward RMD (Required Minimum Distribution). […]Read More… from 2019 Charitable Donations

  • NOL (Net Operating Loss) Changes for 2018

    A net operating loss (NOL) is when business losses exceed income. Prior toJanuary 1, 2018, NOLs were able to offset 100% of taxable income. They were allowed to be carried back two years and carried forward for twenty years.  You could affirmatively elect with a timely filed return to NOT carryback (the default) and instead…

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