Broadened definition of Sec. 152 dependents

The Tax Cuts and Jobs Act of 2017 greatly increased the availability of the child tax credit. Find out the definition of dependent for those purposes and for taking advantage of “surviving spouse” status.

SALT deduction cap rules finalized, safe harbor proposed

Here are details on the new rules that deny a federal tax deduction to taxpayers who donate to a state charitable fund and receive a state or local tax credit in return.

Income recognition changes for accrual-method taxpayers

The Tax Cuts and Jobs Act made some widely applicable but, perhaps, lesser-known changes to accrual accounting rules.

Avoid tax traps with a timely appraisal

New basis-consistency requirements make defensible valuations even more important.

Bonus depreciation safe-harbor rules for vehicles issued

Rev. Proc. 2019-13 allows a deduction in succeeding years of excess unrecovered basis remaining after the Sec. 280F first-year limitation.

Tax treatment of state and local tax refunds clarified

The IRS issued guidance on the tax treatment of state and local refunds now that taxpayers are limited to a $10,000 deduction on their individual tax returns.

IRS expands relief from underpayment penalty

The IRS announced that it is lowering from 85% to 80% the amount taxpayers are required to have paid in order to escape an underpayment of estimated income tax penalty for 2018.

First-year challenges of TCJA implementation require broader penalty relief

Despite generally lower tax bills, many taxpayers are seeing smaller-than-expected refunds — or no refunds at all. And some taxpayers are now subject to underwithholding penalties, despite limited relief from the IRS.

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.

Estate and gift exclusion clawback addressed in proposed regs.

A special rule allows the TCJA's higher exclusion amount to continue to apply in some instances after the provision's scheduled sunset.

Line items

IRS clarifies nondeductibility, UBTI inclusion of qualified parking fringe benefit ... Tesla reaches credit phaseout sales threshold ... Standard mileage rates for 2019

Trust and estate income tax returns under the TCJA

The law known as the Tax Cuts and Jobs Act affects many aspects of these so-called fiduciary returns.

Bonus depreciation safe-harbor rules for vehicles issued

The IRS issued a safe-harbor procedure that taxpayers may follow for determining the deduction for depreciating passenger vehicles when they are eligible for 100% bonus depreciation but are also subject to the Sec. 280F limits on deductions for luxury automobiles.

How tax reform has changed busy season preparation

Practitioners still have a lot of questions about tax reform — including everything from dealing with binding and nonbinding Tax Cuts & Jobs Act (TCJA) guidance to individual planning considerations. Annette Nellen joins this episode of the podcast to address those issues.

Bonus depreciation now available for used property

Proposed regulations raise new considerations for applying bonus depreciation to acquisitions of used property.

Understanding the FDII deduction

Starting this year, C corporations can claim a foreign-derived intangible income deduction of 37.5%.

Sec. 199A: Regulations shed light on QBI deduction

For the first time this tax season, many taxpayers will be claiming the Sec. 199A deduction, which provides a deduction for 20% of qualified business income.

Addressing risks related to the TCJA and Wayfair

In this Q&A, experts discuss the challenges CPA firms face from these developments and the steps they can take to mitigate professional liability risk.

Paid preparer’s checklist expands to include head-of-household, other tax credit questions

Practitioners should be aware of changes to the due-diligence requirements for returns that claim the earned income tax credit, the American opportunity tax credit, and/or the child tax credit.

Line items

Personal exemption claims are deemed for health care provisions ... Suspension of moving expense reimbursement exclusion is clarified