RMD (Required Minimum Distribution) Acknowledging that Americans are living and working longer, the SECURE Act increases the RMD age from 70½ to 72, applicable to distributions made after Dec. 31, 2019, for individuals who reach 70½ from Jan. 1, 2020 on. […]
Why does the 1040 reflect a different figure than the K-1?
Sometimes the loss on the K-1 is not totally deducted on the 1040 due to basis limitation…. And the unused basis limitation is carried forward in those computations. i.e. You put $10k into new business. The business has a loss of $12k on the first K-1 BUT the 1040 will only show up to […]
Read More… from Why does the 1040 reflect a different figure than the K-1?
GILTI – be careful – international investments
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. […]
Read More… from GILTI – be careful – international investments
States with NO SALES TAX
States with NO SALES TAX Alaska Delaware Montana New Hampshire Oregon […]
States with NO INCOME TAX
States with NO INCOME TAX Alaska Florida Nevada South Dakota Texas Washington Wyoming […]
Charitable Donations 501(c)(3) Deduction
Donations to Charities are a tax deduction ONLY if they are a qualified organization per IRS. Click 501(c)(3) to show a map that can be researched by State. Gives lots of information. Giving money to friends or homeless, while it might be a nice thing to do is NOT a deductible charitable donation. […]
GILTI Tax eff Jan 1st, 2018
GILTI (Global Intangible Low-Taxed Income) effective January 1, 2018 Form 8992 is used to disclose the calculation. It basically is your share of Controlled Foreign Corporation (CFC)** Income which, prior to 2018, was just disclosed on Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations). It was a Balance Sheet and Income […]
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! […]
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 […]