In November of 2019, the Treasury Department issued proposed regulations that would revise the tables used to calculate required minimum distributions from qualified retirement plans, IRAs and annuities. Until these new tables are finalized, they should not be used by taxpayers. Instead, taxpayers should continue to use the existing tables to compute required minimum distributions for the 2019...
The 2020 federal estate and gift tax exclusion is $11,580,000, up from $11,400,000 in 2019. The 2020 New York estate tax exclusion is $5,850,000, up from $5,740,000 in 2019. (There is no gift tax in New York State.)
As discussed in our post on March 14, 2019, a business that has no physical presence in New York State but has reached certain levels of sales is required to register as a sales tax vendor, and collect and timely remit the applicable state and local sales tax. On November 5, 2019, the New York State Department of Taxation and Finance issued TSB-M-19(4)S, Sales Tax Registration Requirement for Bu...
Beginning with the 2019 tax year, Form 8995, Qualified Business Income Deduction Simplified Computation, or Form 8995-A, Qualified Business Income Deduction (and supporting schedules) will be used to report the qualified business income deduction under §199A. We will be discussing the new form along with strategies and the final §199A regulations as part of our upcoming Individual Tax Year-End...
The IRS has issued a second version of the draft of Form W-4, Employee’s Withholding Certificate, for the 2020 tax year. The form contains significant changes from the current format of the form. Practitioners should be ready to address these withholding changes with clients when they prepare 2019 tax returns. The final version of the 2020 form is expected to be issued in late 2019. We wil...
The IRS recently issued Revenue Procedure 2019-38, which contains final rules for the real estate safe harbor rules for the qualified business income deduction under §199A. The final rules are effective for tax years beginning after December 31, 2017; however, for the 2018 tax year, taxpayers are permitted to continue to rely on the interim safe harbor rules that were set forth in Notice 2019...
For practitioners who are doing last-minute returns for 2018 and for those who are doing tax projections for the 2019 tax year, it is important to keep in mind certain significant changes that have recently been made to the §179 deduction. For property placed in service after December 31, 2017, the dollar limit is $1,000,000 for 2018, and $1,020,000 for 2019, while the phaseout threshold for th...
Due to the recent major changes to the tax law, there have been more instances of issuers sending corrected versions of Forms 1099 and Schedules K-1 for the 2018 tax year, sometimes long after the original versions were issued. As practitioners enter the final stretch of preparing 2018 tax returns that are on extension, they should ask clients who are on extension if they have received any such ...
The IRS recently announced automatic relief for taxpayers who qualified for the retroactive expansion to the exception for the penalty for underpayment of estimated taxes for the 2018 tax year. Taxpayers who filed their 2018 returns before the IRS expanded the exception to the penalty and who otherwise would have qualified for the exception will automatically receive a refund of the penalty th...
Update for Qualified Improvement Property As discussed in our March 21, 2019 post, qualified improvement property was affected by a technical glitch in the Tax Cut and Jobs Act, which was enacted on December 22, 2017. As a result of this technical glitch, such property is ineligible for bonus depreciation or the 15-year recovery period. As of now, Congress has not acted to correct this technic...
