The Tax Professionals Blog

Insurance Agent Termination Payments

Posted by Lee Reams Sr., BSME, EA on

A frequent question: what is the tax treatment of termination payments made to a retiring insurance agent?

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Tax Reform Waiver – Form 2210

Posted by Lee Reams Sr., BSME, EA on

Under pressure from members of Congress, the IRS agreed to provide relief from the underpayment of estimated tax penalty due to the changes brought about by TCJA and concerns taxpayers may be under- withheld. The IRS indicated they would provide an 85% safe harbor. Most commentators believed that meant replacing the “90%” in the normal 90% of the current year’s tax liability safe harbor with “85%”.

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Kiddie Tax Non-Conformity

Posted by Lee Reams Sr., BSME, EA on

Under the Tax Cuts & Jobs Act (TCJA), and beginning in 2018, a child’s tax on unearned income is no longer based upon the parent’s taxable income for federal purposes. However, California has not conformed to that change.  So, for 2018 here is how kiddie tax is handled for Federal and California purposes.

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New Military Spouse State of Residence Election

Posted by Lee Reams Sr., BSME, EA on

The Veterans Benefits and Transaction Act of 2018, sponsored by Senator Jon Tester of Montana, became public law on 12/31/2018.  Sec. 302 of that legislation added the following election:

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Rentals as Trade or Business for the 199A Deduction

Posted by Lee Reams Sr., BSME, EA on

One of the most difficult tasks tax practitioners are facing this tax season is the determination of whether their clients’ rentals rise t the level of trade or business for purposes of the Sec 199A deduction. 

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