Is Schedule E rental income eligible for the 20% pass-through deduction? Final regulations provide limited guidance, but IRS gives a safe harbor. The new tax break applies to qualified business income from a trade or business. The final regs continue to refer to the standard under federal tax code Section 162, the statute that generally […]
The new tax law revamped the kiddie tax. Under old law, children age 19 or younger (under 24 if a full-time student) were taxed on unearned income in excess of a certain amount at their rate or their parents’ rate, whichever was higher. Tax reform has changed this, starting with 2018 returns. Similar to the […]
The fines under Obamacare’s individual mandate were repealed in late 2017. But only for post-2018 years. The penalties still apply for 2018 returns. Taxpayers who have qualifying health insurance for themselves and their dependents for all of 2018 need only to check the box on their 1040s indicating full-year coverage. If uninsured for any month, […]
Note this easing for workers who lose their jobs and have plan loans. The new tax law gives employees who borrow from their workplace retirement plans more time to repay the debt if they’re let go from their jobs or the plan is terminated. Under prior law, employees who left their jobs were usually required […]
Another vexing issue involves a batch of currently expired tax extenders: The write-off for private mortgage insurance. The $2-million exclusion for forgiven debt on a residence. The limited credit for energy-efficient windows added to one’s home. Several targeted business tax provisions benefiting various special interests. Plus lots of tax breaks for renewable and emerging technology, […]
