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). […]
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 […]
Can unreimbursed employee expenses be deducted? No, not for a W2 employee. Any of the 2017 expenses and years prior that were subject to a 2% of AGI limitation are no longer deductible. Yes, for independent contractors. Yes, for Statutory employees. The best example of a Statutory Employee is an outside insurance […]
Read More… from 2018 Can Unreimbursed Employee Expenses be Deducted?
Assuming you are a W2 employee (not an independent contractor)….. There no longer is any deduction for unreimbursed employee expenses… GONE! That means, unfortunately, you have legitimate expenses you cannot deduct. In an ‘UNACCOUNTABLE’ plan (your allowance), it is suppose to be added to your W2 and taxed for both FICA and Federal Withholding. It is an […]
Read More… from 2018 Unreimbursed Mileage – Unreimbursed expenses for W2 Employee
Two kinds of vehicle plans ACCOUNTABLE PLAN Employee hands employer expense report showing X business miles. Employer reimburses X for that amount up to the approved business mileage rate per mile for that year. Done. Employer gets the deduction. Employee is not taxed. UNACCOUNTABLE PLAN Employee receives X per month with no accounting to the […]
If a shareholder terminates his or her interest in an S corporation during the tax year, the S corporation, with the consent of all affected shareholders (including those whose interest is terminated), may elect to allocate income and expenses, etc., as if the corporation’s tax year consisted of 2 separate tax years, the first of which ends […]
MUCH CONFUSION NOW! In general the new tax law allows self-employed and owners of pass-through entities (partnerships and S Corps) to deduct 20% of “qualified business income“. The law is COMPLEX with limitations, exceptions and undefined terms. Needs to define “qualified business income” more clearly. Specified service entities are subject to high income limitations. There […]
U.S. social security benefits paid to a resident of Canada are taxed in Canada as if they were benefits under the Canada Pension Plan, except that 15% of the amount of the benefit is exempt from Canadian tax. According to the IRS, special tax treatment applies to payments received from the Canadianpension, the Quebec pension plan, […]
If you move but keep your citizenship, you must still report your worldwide income. You may be eligible for a Foreign Earned Income Exclusion and a Foreign Tax Credit for what tax is paid to the foreign country… but ALL US CITIZENS must report and maybe pay. The rules on reporting foreign bank accounts still apply. […]
