02
May 2018
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When a company’s deductible expenses exceed its income, generally a net operating loss (NOL) occurs. If when filing your 2017 income tax return you found that your business had an NOL, there is an upside: tax benefits. But beware — the Tax Cuts and Jobs Act (TCJA) makes some significant changes to the tax treatment of NOLs. Pre-TCJA law Under pre-TCJA law, when a business incurs an NOL, the loss can be carried back up to two years, and then any remaining amount can be carried forward up to 20 years. The carryback can generate an immediate tax refund, boosting cash flow. The business can, however, elect instead to carry the entire loss forward. If cash flow is strong, this may be more beneficial, such as if the...
Classifying workers as independent contractors — rather than employees — can save businesses money and provide other benefits. But the IRS is on the lookout for businesses that do this improperly to avoid taxes and employee benefit obligations. To find out how the IRS will classify a particular worker, businesses can file optional IRS Form SS-8, “Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.” However, the IRS has a history of reflexively classifying workers as employees, and filing this form may alert the IRS that your business has classification issues — and even inadvertently trigger an employment tax audit. Contractor vs. employee status A business enjoys several advantages when it classifies a worker as an independent contractor rather than as an employee....
As posted by Thomson Reuters on 4/11/18 The April 17th deadline arrived this month . . . and sometimes it happens . . . you don’t have the cash to pay the balance due on your return. You can avoid the Late Filing of Return Penalty if you file an extension (generally, six months). But the money is still due meaning that the Late Payment of Tax Penalty and Interest come into play. This Tax Planning Letter reviews methods by which financially distressed taxpayers may be able extend the payment of their income taxes including those outlined in the Table of Contents below: TABLE OF CONTENTS Paying in full within 120 days Installment agreements Offers in compromise Temporarily delaying the collection process PAYING IN FULL WITHIN 120 DAYS A taxpayer can pay the...
Perhaps. It depends on several factors, such as your parent’s income and how much financial support you provided. If you qualify for the adult-dependent exemption on your 2017 income tax return, you can deduct up to $4,050 per qualifying adult dependent. However, for 2018, under the Tax Cuts and Jobs Act (TCJA), the dependency exemption is eliminated. Income and support For you to qualify for the adult-dependent exemption, in most cases your parent must have less gross income for the tax year than the exemption amount. (Exceptions may apply if your parent is permanently and totally disabled.) Generally Social Security is excluded, but payments from dividends, interest and retirement plans are included. In addition, you must have contributed more than 50% of your parent’s financial support. If you...
If you suffered damage to your home or personal property last year, you may be able to deduct these “casualty” losses on your 2017 federal income tax return. For 2018 through 2025, however, the Tax Cuts and Jobs Act suspends this deduction except for losses due to an event officially declared a disaster by the President. What is a casualty? It’s a sudden, unexpected or unusual event, such as a natural disaster (hurricane, tornado, flood, earthquake, etc.), fire, accident, theft or vandalism. A casualty loss doesn’t include losses from normal wear and tear or progressive deterioration from age or termite damage. Here are some things you should know about deducting casualty losses on your 2017 return: When to deduct Generally, you must deduct a casualty loss on your return...
21
Apr 2018
The Facebook scandal involving personal data mishandled by Cambridge Analytica has raised concerns over the privacy of the information we share on our social media accounts. Some countries have gone as far as to legislate Internet data privacy with laws granting the “right to be forgotten.” Yet Facebook CEO Mark Zuckerberg says we don’t need such regulations here in the states. Is he right? And though California has been a leader in privacy, the last meaningful update to the state’s privacy laws was in the 1980s, long before today’s technology. Investigative journalist Ben Swann provides a "Reality Check". Ben Swann is an Emmy winning American television news anchor and investigative journalist who most recently worked at CBS affiliate WGCL-TV in Atlanta, Georgia as chief evening news anchor from 2015 to 2018. His...
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