The Tax Professionals Blog
Business Meals Under the Tax Cuts & Jobs Act
Posted by Lee Reams Sr. on
It is unclear whether or not business meals, those where a bona-fide business discussion takes place during the meal, are considered entertainment under the Tax Cuts & Jobs Act or whether they are classified as food or beverage expenses associated with operating their trade or business.
1041 Allocation Of Estimated Payments & Withholding
Posted by Lee Reams Sr. on
In the final year of a 1041 the income is passed through to the beneficiaries and there is no tax assessed on the 1041. So when this occurs how are tax pre-payments dealt with?Suspended Losses of Former Passive Activities
Posted by Lee Reams Sr. on
Former passive activities are not too common, but can cause confusion. There are several ways in which a tax return can include an item which is not passive on the current return, but which was passive at some time in the past. For example, tax-deferred exchanges can pass losses from one activity to another, transfers in a divorce, a change in business format and the conversion of a property from rental to personal use are a few possibilities that can cause this. Rental Sale or Gift?
Posted by Lee Reams Sr. on
What happens when there is transfer of a business property to a related party when the transaction is part sale and part gift?
Roth Recharacterization Relief for 2017 Conversions
Posted by Lee Reams Sr. on
Prior to passage of the Tax Cuts & Jobs Act (TCJA) taxpayers were able to make a traditional to Roth IRA conversion in year 1, and then if the tax was too high, the account lost value or they simply changed their minds, they could convert it back to a traditional IRA in Year 2 and avoid the tax on the conversion. The IRS refers to this process as recharacterization.