Qualified improvement property and bonus depreciation - The Tax …
Sep 1, 2021 · Qualified improvement property and bonus depreciation. Editor: Trenda Hackett, CPA. September 1, 2021. Qualified improvement property (QIP) is any improvement that is Sec. 1250 property made by the taxpayer to an interior portion of a nonresidential building placed in service after the date the building was placed in service.
Revocable trusts and the grantor's death: Planning and ...
Mar 25, 2021 · A revocable trust will remain a grantor trust unless or until the grantor renounces the power to revoke, initiates suitable amendments to the trust during his or her lifetime, decants the trust to a nongrantor trust, or dies. Therefore, all income, gains, losses, deductions, and credits are reportable on the grantor's annual income tax return.
The rules on interest for loans between related parties
Mar 11, 2021 · In an effort to curb these perceived abuses, Sec. 7872 was enacted as part of the 1984 tax overhaul (Deficit Reduction Act of 1984, P.L. 98-369). This Code section required loans between certain related parties, usually in excess of $10,000, to bear a minimum amount of interest based on the applicable federal rates (AFRs).
Employer-provided and company-owned vehicles - The Tax Adviser
For 2022, the limit is $56,100 for a passenger automobile, van, or truck (Notice 2022-3). The cents-per-mile valuation includes insurance, maintenance, and fuel. If fuel is not provided by the employer, the cents-per-mile rate may be reduced by no more than 5.5 cents per mile (Regs. Sec. 1.61-21 (e) (3)).
Electing S status by an LLC - The Tax Adviser
Apr 1, 2020 · An LLC that is eligible to elect S status and timely files an S election (Form 2553, Election by a Small Business Corporation) is considered to have made the election to be taxed as a corporation (Regs. Sec. 301. 7701 - 3 (c) (1) (v) (C)). These entities are not required to file Form 8832, Entity Classification Election.
Service businesses that qualify for the 20% QBI deduction
Dec 1, 2018 · One major provision of the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, is a new tax deduction for passthrough entities (S corporations, partnerships, and sole proprietorships) under Sec. 199A.The deduction generally provides owners, shareholders, or partners a 20% deduction on their personal tax returns on their qualified business income (QBI).
Limiting business interest expense - The Tax Adviser
Sep 1, 2019 · Limiting business interest expense. For tax years beginning after 2017, the deduction for business interest expense cannot exceed the sum of the taxpayer's: Floor plan financing interest expense (Sec. 163 (j); Prop. Regs. Sec. 1.163 (j)-2 (b)). The prior Sec. 163 (j) rules, which covered so - called earnings stripping and denied a corporation's ...
Maximizing the QBI deduction with UBIA property - The Tax Adviser
Oct 31, 2019 · Under Sec. 199A (b) (2), a taxpayer's QBI deduction is determined to be the lesser of: (1) 20% of QBI, or. (2) the greater of. (a) 50% of Form W-2 wages, or. (b) 25% of Form W-2 wages, plus 2.5% of the UBIA of qualified property. Lower-income taxpayers are not typically subject to the Form W-2 wages and UBIA of qualified property limitation ...
Five types of interest expense, three sets of new rules - The Tax …
Oct 1, 2018 · Individual taxpayers are subject to different rules for deducting different types of interest expense. The five primary types of interest for individual taxpayers are student loan interest, qualified residence indebtedness interest, investment interest, business interest, and personal interest. The law known as the Tax Cuts and Jobs Act ...
Guide to expensing HVAC costs - The Tax Adviser
Apr 15, 2021 · Insight: The law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, makes HVAC costs eligible for expensing under Sec. 179. To be eligible, the HVAC costs must be for nonresidential real property that is placed in service after the date the property was first placed in service. This guide provides tax preparers an outline of questions to ...