IRS has a cure for the summer tax doldrums. Guidance on a complicated new tax break…the 20% write-off for pass-through income. The Service’s highly anticipated proposed regulations define terms, provide operational rules and examples, and address some unsettled issues in the legislation. They’re long and complex, coming in at 184 pages.
Continue reading “Summer Tax Doldrums”
The Service warns that a substance-over-form recharacterization may ensue.
The IRS announced that it plans to issue regulations in response to state legislation intended to help taxpayers avoid the $10,000 limitation on the deduction for state and local taxes, known as the Tax Cuts and Jobs Act. That limitation applies to individual taxpayers for tax years beginning after December 31, 2017 and ending before January 1, 2026.
Continue reading “IRS to Clarify Rules on Payments in Lieu of State and Local Taxes”
Last year’s tax law was a key legislative win for President Trump and congressional Republicans. So, with the midterm elections coming up…GOP lawmakers want even more tax cuts. They view taxes as a valuable campaign message to help entice voters to come out to the polls in November.
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Long-term gains still get favorable rates. Profits from the sale or exchange of capital assets held for more than a year are taxed at 0%, 15% or 20%.
Continue reading “Taxation of Capital Gains”