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2019 Employee Benefit Plan and Transportation Limits
The tables below present the Internal Revenue Service's (“IRS”) 2019 cost-of-living adjustments for retirement, health and welfare plans, and transportation programs. The majority of limits increase modestly for 2019, while some of the dollar limits currently in effect for 2018 will remain the same. Notable limits increasing slightly in 2019 are the IRA contribution and elective deferral limits.
IRS Proposes Regulations for Opportunity Zone Tax Incentives
The Tax Cuts and Jobs Act (TCJA) includes a provision that Secretary of the Treasury Steven Mnuchin said should lead to $100 billion in capital investments in distressed areas. The provision allows taxpayers to defer tax on capital gains by investing in such Opportunity Zones. The IRS unveiled proposed regulations on October 19, 2018 that should help investors capture this tax incentive.
The Business Meal Expense Deduction Lives on Post-TCJA
The Tax Cuts and Jobs Act (TCJA) was packed with goodies for businesses, but it also seemed to eliminate the popular meal expense deduction in some situations. Now, the IRS has issued transitional guidance — while it works on proposed regulations — that confirms the deduction remains allowable in certain circumstances and clarifies when businesses can claim it.
Wayfair Update: Several States Expand Sales Tax Requirements as of October 1
In June, the Supreme Court issued the historic decision of expanding the states’ ability to require businesses to collect sales tax.
Three Bills Form Tax Reform 2.0
On September 13, the House Ways and Means Committee passed three separate bills that will be the cornerstone of what is being referred to as Tax Reform 2.0.
Combining Businesses and Netting Losses for the Section 199A Pass-Through Deduction
The new Section 199A deduction can be up to 20% of qualified business income (QBI), but it is subject to limitations; including limits based on wages and qualified property. Many taxpayers will find that combining, or aggregating as the proposed regulations refer to it, will lessen the impact of the wage and property limitations. However, a taxpayer must satisfy certain criteria before businesses can be aggregated.
IRS Proposes Pass-Through Deduction Regulations
The highly anticipated regulations regarding the deduction for up to 20% of qualified business income (QBI) have been proposed by the IRS. The addition of Section 199A, which governs the pass-through deduction, was a major component of the new tax law that was passed last December.
IRS Issues Guidance on New Bonus Depreciation Rules
The Tax Cuts and Jobs Act (TCJA) significantly expands bonus depreciation under Section 168(k) of the Internal Revenue Code for both regular tax and alternative minimum tax (AMT) purposes. Now, the IRS has released proposed regulations that clarify the requirements that businesses must satisfy in order to claim bonus depreciation deductions. Although the regulations are only proposed at this point, the IRS will allow taxpayers to rely on them for property placed in service after September 27, 2017 for tax years ending on or after September 28, 2017.
Is More Tax Reform on the Horizon?
President Trump and Republican lawmakers currently are considering a second round of tax reform legislation as a follow-up to last year’s Tax Cuts and Jobs Act. As of this writing, no actual bill has been drafted, but a framework of what the tax package may contain has been released, which is referred to as Tax Reform 2.0.
Supreme Court Wants YOU to Collect Sales Tax: What Every Business Should do in the Wake of Wayfair
In South Dakota v. Wayfair, Inc., the U.S. Supreme Court handed down a landmark ruling giving state and local governments the green light to impose sales taxes collection requirements on out-of-state sellers. States must have some minimum contact with a business to justify imposing the burden of tax compliance on that business. This is referred to as the “nexus” required to impose a state’s tax law.