Pages 1 through 6 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book have information on determining eligibility for the clean vehicle credit for vehicles placed in service during 2022. The IRS recently issued additional guidance for vehicles placed in service during 2023, including a list of eligible models. See: https://www.irs.gov/credits-deductions/manufacturers-and...
On December 29, 2022, the SECURE 2.0 Act was enacted as part of the broader Consolidated Appropriations Act of 2023. The SECURE 2.0 Act makes substantial changes to the rules for retirement accounts. Major changes in the new law include the following: The law raises the age for determining the beginning date for required minimum distributions from age 72 to age 73. However, this change applies o...
The IRS has released the 2023 standard mileage rate. For business travel, it is 65.5 cents per mile (up from 62.5 cents per mile in the second half of 2022). For medical-related travel, it is 22 cents per mile (unchanged from the second half of 2022). The rate for charitable use of an automobile is not subject to adjustment, and it remains 14 cents per mile. As discussed in our post on June ...
The Infrastructure Investment and Jobs Act of 2021 requires brokers to report proceeds from the sale of digital assets (such as Bitcoin and other virtual currencies) on an information return similar to Form 1099-B. This reporting requirement was supposed to take effect on January 1, 2023, and for digital assets acquired on or after January 1, 2023, the report was also required to include the bas...
On Friday December 23, 2022, the IRS issued Notice 2023-10, which delays the implementation date of the lower filing threshold for Form 1099-K, Payment Card and Third-Party Transactions. The threshold for filing Form 1099-K for the 2022 tax year was scheduled to be $600 for the year. The IRS has delayed this lower threshold for the 2022 year, so that the prior threshold will continue to apply fo...
New York State has announced that the estimated tax payment system for the New York City pass-through entity tax (PTET) is now open and available for entities to make optional estimated tax payments for the 2022 tax year. Estimated tax payments are not required for the NYC PTET for the 2022 tax year, but entities may wish to make voluntary estimated payments on or before December 31, 2022 in ord...
The 2023 federal lifetime unified estate and gift tax exclusion is $12,920,000 up from $12,060,000 in 2022. In addition, the annual federal gift tax exclusion in 2023 is $17,000 per person per year, up from $16,000 in 2022. The 2023 New York estate tax exclusion is $6,580,000, up from $6,110,000 in 2022. (There is no gift tax in New York State.) If you have not already enrolled or taken ou...
Update: See our post on December 5, 2023 regarding a change in due date for entities created during 2024. The Corporate Transparency Act requires certain business entities doing business in the United States to report information about their owners to the Financial Crimes Enforcement Network (FinCEN). FinCEN issued final regulations regarding the requirement in September 2022. See: https://ww...
As discussed on pages 27 through 30 of the Tax Year 2022 M+O=CPE Individual Tax Year-End Workshop Reference Book, Schedules K-2 and K-3 were introduced by the IRS for the 2021 tax year for entities to report international/foreign tax information to owners. The IRS surprised many by requiring that certain entities file Schedules K-2 and K-3, even though they have no foreign activities. IRS Notice...
New York State has changed its position regarding the addback of passthrough entity tax (PTET) payments when computing taxable income for PTET purposes. Now, its frequently asked questions (https://www.tax.ny.gov/bus/ptet/faq.htm) have been updated as follows: “For PTE taxable income computation purposes only, an entity must add back all pass-through entity taxes paid and deducted for federal ...
