W-2 wages and Sec. 199A
Finding the “sweet spot” to maximize the qualified business income deduction may involve adjusting a business’s workforce.
S Corporation Income Taxation
S corp. expenses not personally deductible by shareholder as a sole proprietor
A district court denies a taxpayer's refund claim.
Distribution by former S corporation is part dividend
The IRS ruled that a distribution to the sole shareholder of a C corporation was partly a recovery of the former S corporation’s accumulated adjustments account (AAA) and a taxable dividend for the remaining distribution.
What CPAs need to know about Sec. 199A guidance and SSTBs
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.
Income omission triggers 6-year limitation period
Reporting of some S corporation gross receipts is not adequate disclosure of all receipts, the Tax Court holds.
The new QBI deduction is finally clearer
Proposed regulations issued on Sec. 199A bring welcome guidance.
S corporation shareholder may not revoke tax election
The Tax Court declines to create a precedent and allow an individual S corporation shareholder to unilaterally and retroactively revoke the corporation's election.
Levy on husband-and-wife LLC is upheld
Taxpayers' claim they were a single-member limited liability company is belied by partnership returns, the Tax Court concludes.
Mechanics of the new Sec. 199A deduction for qualified business income
This article reviews several scenarios in which certain individuals could take advantage of a new Internal Revenue Code provision to significantly lower their taxes.
Carry your losses (further) forward
New rules limit utilization of net operating losses.
S corp. basis and why it’s important
Loans must qualify as “bona fide debt” to create basis for deducting passthrough losses.
Deductions disallowed for operator of Larry Bird’s former house as a B&B
The French Lick, Ind., property was used for personal purposes more than 14 days per year, the Tax Court holds.
Loan guarantees do not increase S corporation shareholder’s basis
The guarantees lacked any economic outlay, the Tax Court holds.
Boston Bruins can deduct full cost of meals for team’s away games
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.
S corporation’s sole owner had unreported income but not constructive dividend
The Tax Court cites a lack of earnings and profits.
LLC’s sole member is held liable for employment taxes
An LLC is treated by default as a disregarded entity, the Tax Court holds.
S corporation’s payments on its owner’s behalf are held not to be wages
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.
Forfeited deposits are ordinary income
Income from forfeited deposits of terminated contracts related to Sec. 1231 property is not eligible for capital gain treatment under Sec. 1234A.
Helping S corporations avoid unreasonable compensation audits
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.
Sec. 4980D excise tax relief is available for certain small employers
IRS gives limited transition relief for employer payment plans and 2% S corporation shareholder arrangements.
