Form 1065 for the 2019 tax year includes a new required disclosure on Schedule K-1 of the tax identification number and name for any partner/member that is a disregarded entity. Since it can often be time consuming to obtain this information, practitioners should work on obtaining this information from clients as soon as possible. Certain other disclosures about the owners of a partnership or ...
At this time of year, practitioners exchange documents with clients on a daily basis. It is vital to keep such document exchanges secure, since most of these documents include very sensitive information. Text messages or an email attachment that is not encrypted with a password is extremely vulnerable to interception by identity thieves. Since many clients do not think about the need for suc...
As discussed on pages 50 to 52 of the Tax Year 2018 M+O=CPE Individual Tax Year-End Workshop Reference Book, effective for 2018 and later tax years (and scheduled to expire after 2025), non-corporate taxpayers are limited in the amount of business losses that can be deducted against other income on the individual income tax returns. The limit is computed on Form 461, Limitation on Business Los...
The draft instructions for the 2019 version of Form 1065, U.S. Return of Partnership Income, indicated that partnerships were required to report a partner’s capital account analysis (reported in Part L of Schedule K-1) on the tax basis. For 2018 and earlier tax years, partnerships were permitted to report a partner’s capital account using the tax basis, generally accepted accounting princi...
As part of the ban on single-use plastic bags, which goes into effect on March 1, 2020, effective on that same date, vendors in Suffolk County, New York City and Tompkins County must generally charge a fee of 5 cents per bag for paper bags that are provided to customers, and this fee must be remitted to New York State as part of their sales tax returns. (The fee that is remitted to New York is...
As discussed on pages 64 to 66 of the Tax Year 2019 M+O=CPE Individual Tax Year-End Workshop Reference Book, taxpayers with capital gains can defer the recognition of those gains by reinvesting the amount of the gain into a qualified opportunity fund. On December 19, 2019, the Treasury Department issued final regulations related to investing in qualified opportunity funds. (See Treasury Deci...
As discussed on pages 64 to 66 of the Tax Year 2019 M+O=CPE Individual Tax Year-End Workshop Reference Book, taxpayers with capital gains can defer the recognition of those gains by reinvesting the amount of the gain into a qualified opportunity fund. On December 19, 2019, the Treasury Department issued final regulations related to investing in qualified opportunity funds. (See Treasury Deci...
As discussed on pages 5 to 10 of the Tax Year 2019 M+O=CPE Individual Tax Year-End Workshop Reference Book, the major revision of Form W-4 for the 2020 tax year requires practitioners to adjust to a completely new withholding computation and to be able to interact with both the old and new system. Since the 2020 version of Form W-4 requires employers to make different withholding calculations ...
The IRS has released the 2020 standard mileage rate. For business travel, it is 57½ cents per mile (down from 58 cents in 2019). For medical-related travel, it is 17 cents per mile (down from 20 cents in 2019). The rate for charitable use of an automobile is not subject to adjustment, and it remains 14 cents per mile. ...
The Consolidated Appropriations Act was enacted on December 20, 2019. The main focus of the new law is spending provisions for the fiscal year that ends on September 30, 2020. However, the new law also contains an extension of certain tax provisions that were scheduled to expire or that had already expired. The new law also contains certain new tax provisions. Medical Expense Threshold T...
