The Tax Professionals Blog

Revoking the Bonus Depreciation Election

Posted by Lee Reams Sr., BSME, EA on

Ever wonder if you can revoke an election not to claim bonus depreciation? Generally, the election out of bonus depreciation can only be revoked with IRS consent, except that if made on a timely filed return, the election-out can be revoked on an amended return filed within six months of the original return's due date (excluding extensions). (Reg § 1.168(k)-1(e)(7))Reg § 1.168(k)-1(e)(7)(ii) - Automatic 6-month extension - If a taxpayer made an election specified in paragraph (e)(1) of this section for a class of property, an automatic extension of 6 months from the due date of the taxpayer's Federal tax...

Read more →


Gift Tax Treatment of Tuition Plans

Posted by Lee Reams Sr., BSME, EA on

Qualified tuition plans (QTP) provide a means for family members and others to save for the future educational needs of children. Investment earnings within a QTP account are tax deferred and not taxable when withdrawn if used to pay for qualified tuition and expenses.

Read more →


Excess Deductions on Trust Termination

Posted by Lee Reams Sr., BSME, EA on

There has been some confusion related to the deductibility of excess deductions flowing through to beneficiaries from a trust on Form 1041-K1 upon termination of the trust. Prior to the passage of the TCJA excess deductions on the termination of a trust were included as part of the beneficiary’s tier 2 (subject to the 2% of AGI limitation) miscellaneous itemized deductions.

Read more →


In Vitro Fertilization as a Medical Deduction?

Posted by Lee Reams Sr., BSME, EA on

The cost of In vitro fertilization treatment is expensive. Can the payments be deducted as a medical expense and can payments be made from a Flexible Spending Account for In vitro fertilization treatments? 

Read more →


401(k) Contribution Limits

Posted by Lee Reams Sr., BSME, EA on

It is not uncommon for individuals to have multiple employers, each with a 401(k) plan. This can possibly create a situation where the employee makes an excess elective deferred compensation contribution.  The maximum annual contribution for 2018 is $18,500 ($24,500 if age 50 and over). These amounts are increased for 2019 to $19,000 and $25,000, respectively.

Read more →