One of the areas that accountants are most interested in regarding tax reform is Sec. 199A guidance — and, more specifically, how the deduction for qualified business income relates to a specified service trade or business. Tony Nitti, CPA, addresses some popular questions on that topic.
S Corporation Income Taxation
Reporting of some S corporation gross receipts is not adequate disclosure of all receipts, the Tax Court holds.
Proposed regulations issued on Sec. 199A bring welcome guidance.
The Tax Court declines to create a precedent and allow an individual S corporation shareholder to unilaterally and retroactively revoke the corporation's election.
Taxpayers' claim they were a single-member limited liability company is belied by partnership returns, the Tax Court concludes.
This article reviews several scenarios in which certain individuals could take advantage of a new Internal Revenue Code provision to significantly lower their taxes.
New rules limit utilization of net operating losses.
Loans must qualify as “bona fide debt” to create basis for deducting passthrough losses.
The French Lick, Ind., property was used for personal purposes more than 14 days per year, the Tax Court holds.
The guarantees lacked any economic outlay, the Tax Court holds.
The Tax Court held that the owners of the Boston Bruins could deduct the full cost of their team’s pregame meals for away games as a de minimis fringe benefit.
The Tax Court cites a lack of earnings and profits.
An LLC is treated by default as a disregarded entity, the Tax Court holds.
Despite a lack of promissory notes, interest, or repayment terms, the Tax Court treats an owner's advances to his business as loans and its payment of his personal expenses as repayments.
Income from forfeited deposits of terminated contracts related to Sec. 1231 property is not eligible for capital gain treatment under Sec. 1234A.
The IRS aggressively audits S corporations to make sure they do not disguise compensation as distributions to shareholders. Here’s what tax preparers need to know to avoid red flags in S corporation returns.
IRS gives limited transition relief for employer payment plans and 2% S corporation shareholder arrangements.
FASB proposed two standards changes that are designed to reduce complexity in accounting for income taxes.