2018 FACTS on WHO PAYS TAX The top 1% of individual filers paid 40.08% of all U.S. income taxes for 2018 per IRS (up from 2017’s figure of 38.47%). The top 1% earned at least $540,009. The top 5% earned at least $217,913 and paid 60.30% of total income tax. The top 10%, those with AGIs […]
Category: LLC
NOL 2020 COVID-19
COVID-19 related changed to Net Operating Losses (NOL) CARES Act reverses the general ban on carrybacks of NOLs by requiring NOLs arising in 2018, 2019 or 2020 to first be carried back five years, unless the taxpayer elects to instead carry the NOLs forward. It suspends the 80% taxable income limit for NOLs in 2018 to […]
Qualified Disaster Payments to Employees During COVID-19
§139 of the Internal Revenue Code (the “Code and if you ever tried to read it you will know why they call it Code)”) excludes from a taxpayer’s gross income certain payments to individuals to reimburse or pay for expenses related to a qualified disaster. CONVID-19 is considered a Qualified Disaster in all states…. A […]
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Florida Sales Tax Questions
Use this link for questions. State of Florida is very good at responding. Be specific. https://floridarevenue.com/faq/Pages/contactus.aspx […]
SEP for 2020
In 2020 the MAX SEP is changed to 20% of earned income up to max of $57,000. […]
Mileage Deduction 2020
The 2020 standard mileage rate for business driving falls to 57.5¢ a mile. The mileage allowance for medical travel and military moves declines to 17¢ a mile in 2020. But the charitable driving rate stays put at 14¢ a mile. It’s fixed by law. […]
Medical Device Tax – GONE as is Cadillac penalty
Two Obamacare excise taxes are gone for good: The 2.3% medical device tax and the 40% tax on employer-sponsored “Cadillac” health insurance plans. […]
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Why does the 1040 reflect a different figure than the K-1?
Sometimes the loss on the K-1 is not totally deducted on the 1040 due to basis limitation…. And the unused basis limitation is carried forward in those computations. i.e. You put $10k into new business. The business has a loss of $12k on the first K-1 BUT the 1040 will only show up to […]
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GILTI – be careful – international investments
You may be subject to GILTI if: U.S. Shareholder – United States Person (citizens, residents, domestic entities) owning at least 10%, directly or indirectly, of the foreign corporation’s voting stock or value (Prior toTCJA only consideration was voting stock). Controlled Foreign Corporation (CFC) – any foreign corporation of which more than 50% of the vote or value is owned by U.S. shareholders on any day during a given year. […]
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Sub S Basis Reporting 2018 Forward
2018 Form 1040 U.S. Individual Income Tax Returns that have an S Corporation K-1 are required to check a box on line 28 of Schedule E to attach a basis computation. This applies to corporations reporting a loss, stock disposal, receive a loan repayment or DISTRIBUTION! […]