The Tax Professionals Blog
Independent Contractor or Employee - The “ABC” Test
Posted by Lee Reams Sr. on
Several states, including California, Massachusetts, and New Jersey, have adopted the so-called “ABC” test. The test is a broad means of determining a worker’s status as either an employee or a contractor by considering the following criteria:
HELOCs and Acquisition Debt
Posted by Lee Reams Sr. on
There was a recent lengthy discussion on ClientWhys connect in regards to what constitutes acquisition debt and equity debt in light on the TCJA.
Tax Reform and the Recharacterization Rule
Posted by Lee Reams Sr. on
The Tax Cuts & Jobs Act repeals the special rule that allows a traditional IRA to Roth IRA conversion to be later unwound. Thus, for example, under the provision, a conversion contribution to a Roth IRA during a taxable year can no longer be recharacterized as a contribution to a traditional IRA (thereby unwinding the conversion). The provision is effective for taxable years beginning after December 31, 2017 (IRC Sec. 408A(d)(6)(B)(iii) as amended by TCJA Sec. 13611(a).
W-2 After Death
Posted by Lee Reams Sr. on
Tax Preparation Fees
Posted by Lee Reams Sr. on
Under the Tax Cuts and Jobs Act, tier 2 (those subject to the 2% of AGI floor) miscellaneous itemized deductions are suspended for years 2018 through 2025. Tax preparation fees are part of the tier 2 miscellaneous deductions and therefore are no longer deductible unless…