Newsletter Topics

GILTI - be careful - international investments

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You may be subject to GILTI if:

  • U.S. Shareholder – United States Person (citizens, residents, domestic entities) owning at least 10%, directly or indirectly, of the foreign corporation’s voting stock or value (Prior toTCJA only consideration was voting stock).
  • Controlled Foreign Corporation (CFC) – any foreign corporation of which more than 50% of the vote or value is owned by U.S. shareholders on any day during a given year.
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  • GILTI - Global Intangible Low Taxed Income (think it is mis-named as it implies INTANGIBLES... but it is way more than that).....  if you have any international investments (not in United States) be sure you understand whether you are required to deal with this.
 

Sub S Basis Reporting 2018 Forward

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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!

RMD Missed?

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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 it.