Category Archives: Tax Law
S Corporations Subject to Extended Three Year Holding Period
The Tax Cuts and Jobs Act, which was passed late last year, extended the holding period for carried partnership interests to three years. Carried interests are ownership interests in partnerships that allow the holder to share in the partnership’s net profits. These interests often result in the holder receiving capital gains that are taxable… Read More »
IRS Urges Taxpayers to Renew Their ITINs
Individual Taxpayer Identification Numbers (ITINs) are used by those who have tax filing obligations, but are not eligible for Social Security Numbers. These numbers expire after a certain amount of time and so must be renewed. Those who fail to renew their ITINs face serious penalties, so if your ITIN is expired, it is… Read More »
New Tax Withholding Tables to be Implemented
As part of the tax reform legislation that was enacted last month, the IRS released an updated version of the income-tax withholding tables for 2018. Employers are directed to use the new tables as soon as possible, although no later than the middle of February, at which point employees should begin to see an… Read More »
Deducting Home Equity Loan Interest Payments
Responding to a number of questions receive from taxpayers, the IRS officially announced that despite the recently enacted restrictions on home mortgages, many taxpayers can continue to deduct interest paid on their home equity loans, second mortgages, and home equity line of credit, regardless of how the loan is actually labeled. To speak with… Read More »
IRS Retroactively Renews Important Tax Benefits
On February 9th, Congress enacted the Bipartisan Budget Act of 2018, which renewed a wide range of individual and business tax benefits for 2017 that had technically expired at the end of 2016. The three most popular benefits affected by the renewal involve deductions for tuition, mortgage insurance premiums, and the exclusion of qualified… Read More »
Common Tax Season Myths
In an effort to dispel some of the confusion that abounds during tax season, the IRS released a publication exposing the most commonly spread false tax and refund-related information. If you have unfiled taxes, have not received your refund, owe the IRS a substantial tax debt, or have another tax question, it is critical… Read More »
Florida Hurricane Victims Could Qualify for Earned Income Tax Credit
As part of an effort to notify taxpayers of their potential eligibility for tax credits, the IRS recently announced that victims of last year’s Hurricane Irma could qualify for the Earned Income Tax Credit (EITC). According to the IRS, those who lived in areas affected by Hurricane Irma and who experienced a drop in… Read More »
Taxpayers with Disabilities may Qualify for the EITC
The Earned Income Tax Credit (EITC) is a federal income tax credit that is available to workers who earned $53,930 or less in 2017. The EITC is a refundable credit, so those who qualify could end up paying less in federal taxes or even receiving a refund. Unfortunately, many taxpayers with disabilities or who… Read More »
New Transition Tax on Foreign Earnings
On December 22 of last year, Congress enacted new tax legislation that called for the imposition of a transition tax on the foreign earnings of certain international companies. The new law comes with a number of regulations and rules regarding the calculation of the tax, although many have yet to be published. The new… Read More »
Safe Harbor Methods for Calculating Property Loss Tax Deductions
Recently, the IRS announced that it would be taking further steps to aid hurricane victims by providing safe harbors methods that taxpayers can use to calculate their hurricane-related casualty and theft losses. There are a variety of methods that can be used in making this determination, so if your home recently sustained damage in… Read More »
