Consider all the tax consequences before making gifts to loved ones

Consider all the tax consequences before making gifts to loved ones Many people choose to pass assets to the next generation during life, whether to reduce the size of their taxable estate, to help out family members or simply to see their loved ones enjoy the gifts. If you’re considering lifetime gifts, be aware that … Continued

RICs Can Defer Distributing Transition Tax Amount

In a Revenue Procedure, the IRS has allowed regulated investment companies (RICs) to postpone to 2018 the inclusion of the Code Section 965 transition tax in gross income for purposes of computing their required distributions. RICs can be any of several financial entities, from mutual fund trade funds to real estate investment rusts or unit … Continued

All Combat-Zone Contract Workers Now May Qualify for Income Exclusion

U.S. citizens or resident aliens, and specifically contractors or their employees supporting the U.S. Armed Forces in combat zones, may qualify for the foreign earned income exclusion.  Qualified individuals may exclude from gross income, subject to certain limitations, wages or self-employment income earned for services performed outside the United States. To be entitled, however, a … Continued

Do you own any part of a Foreign Disregarded Entity?

If your answer is yes, you have a minimum requirement to file Form 8858. The amount of your involvement is a deciding factor for the requirement of filing additional forms such as Schedules C, H and M, to list a few. Form 8858 is a common form missed by many taxpayers year after year and … Continued

IRS Adds to Lists of Countries with Reporting Requirements

The IRS has updated two lists of countries with which the U.S. has an agreement that requires certain payments to be reported to the United States. One list is of countries with which the United States has an income tax or other treaty or a bilateral agreement; the other is of countries with which the … Continued

Tax-free fringe benefits help small businesses and their employees

Tax-free fringe benefits help small businesses and their employees In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Benefits that are tax-free are especially attractive to employees. Let’s take a quick look at some popular options. Insurance Businesses … Continued

The Tax Treatment of Moving Expense Reimbursements

New IRS guidance states that employer payments or reimbursements made in 2018 for employee moving expenses, which were incurred prior to 2018, are excluded from the employee’s wages for income and employment tax purposes. (Notice 2018-75) Background Information The tax code provides that gross income doesn’t include qualified moving expense reimbursements. However, a provision that … Continued

Tax Reform: Which Changes Are Temporary vs. Permanent?

The Tax Cuts and Jobs Act (TCJA) includes a bevy of important tax changes for individuals and businesses. However, it’s sometimes hard to keep track of which changes are permanent and which are scheduled to expire at the end of 2025 — unless Congress extends them.Here’s a scorecard to help you keep track of the … Continued

Employers: Consider Telemedicine and Make Sure Employees Use It

Employers: Consider Telemedicine and Make Sure Employees Use It Telemedicine continues to change the way that medical professionals and patients interact. In a survey by the Mercer consulting firm, nearly three-quarters of employers with at least 500 workers said they make telemedicine services available. Yet employers with programs in place reported that only 7% of … Continued

Charitable IRA rollovers may be especially beneficial in 2018

Charitable IRA rollovers may be especially beneficial in 2018 If you’re age 70½ or older, you can make direct contributions — up to $100,000 annually — from your IRA to qualified charitable organizations without owing any income tax on the distributions. This break may be especially beneficial now because of Tax Cuts and Jobs Act … Continued