Our Most Recent Blog Posts

2018 20% Pass-through Deduction

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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 is an issue wit tiered entities and whether or not Schedule E rental income is "qualified business income".
 
Expect guidance (hopefully clear guidance) late this year 2018.
 
 
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Canadian Pensions

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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 Canadian
pension, the Quebec pension plan, and the Old Age Security plan. If the recipient is a resident of the United States, the benefits are taxable only in the United States, treated as US social security benefits for US tax purposes
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Affordable Care Act Penalty Exemptions

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Special hardship exemptions have to be applied for.... and when taxpayer receives an ECN (exemption certificate number) we can input that and the penalty goes away.   Has to be applied for....

Here is the link.

https://www.healthcare.gov/health-coverage-exemptions/hardship-exemptions/

If you have not done so, you should explore this.... some possible exemptions.......

Required care of a loved one disrupts your ability to pay living expenses

Or

Marketplace plans are unaffordable

Or

Experience some hardship in obtaining health insurance.

THERE ARE MORE EXEMPTIONS.  Have a look.

 

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1099's - can we just do them?

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For many things processed at www.USATaxHelp.com, we will need to submit your authorization in the form of a Power of Attorney (POA).  If it is an income issue, audit issue, etc we will need one type POA (F2848)... if it is authorization to file payroll tax forms... IRS has another form (F8655) as does State of Florida (DR600).....

BUT, for 1099's to IRS, our firm can process if.........

Transmitters, paying agents, etc.  A transmitter, service bureau, paying agent, or disbursing agent (hereafter referred to as “agent”) may sign Form 1096 on behalf of any person required to file (hereafter referred to as “payer”) if the conditions in 1 and 2 below are met.

  1. The      agent has the authority to sign the form under an agency agreement (oral,      written, or implied) that is valid under state law and

  2. The      agent signs the form and adds the caption “For: (Name of payer).”

http://www.irs.gov/instructions/i1099gi/ar02.html#d0e507

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Exchange - not Sale to defer tax

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SUMMARY OF IRS LINK       https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031

You cannot sell ANYTHING and defer taxes…

You can EXCHANGE (qualified intermediary is hired.. you don’t get your hands on the money)… subsequent property is identified within 45 days… and have a total of six months from sale date to purchase like kind property.

When the exchange is done, if you received boot (money, cars, debt forgiveness in excess of debt assumed), then you are taxed on a part of the boot.

The old rules of selling a primary and reinvesting the proceeds in a home of equal or greater value are gone.

AND, it did not apply to a vacation home anyway, only a primary.

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