Tax Preparer Security Awareness
Although the main part of the 2019 filing season has passed it is a good time to remind tax preparers of their obligation to protect the sensitive tax and financial data of their clients.
2019 Federal Tax Changes
Below are some of the federal provisions that will go into effect or be changing in 2019.
Is Rental Income Qualified Business Income
Rental income will be considered to be qualified business income if it meets the following criteria under the safe harbor rules contained in Revenue Procedure 2019-38.
Safe Harbor Rule for Autos that Claim Bonus Depreciation
The IRS has issued guidance (IRS Revenue Procedure 2019-13) that provides a safe harbor method for determining depreciation deductions for autos that claim 100-percent bonus depreciation for 2018 – 2022.
2018 Federal Return and Taxpayer Expectations
With the 2019 filing season it is important for preparers to be aware that, due to tax reform and the changes to the withholding tables, some of your clients may receive a surprise when they see the results on their 2018 federal return in the form of a lower refund – some may even show a balance due.
Reminder of 2018 Itemized Deduction Changes
As the 2019 filing season is almost upon us this is a reminder of the changes to the 2018 itemized deductions.
Qualified Business Income Deduction (20% Deduction for Certain Pass-Through Income)
The Tax Cuts and Jobs Act included a provision that may allow an individual to deduct 20% of their domestic qualified business income from a partnership, S Corporation or sole proprietorship (Schedule C or F).
Important Reminders for the Upcoming 2019 Filing Season
This is a reminder that the IRS has redesigned the 2018 Form 1040.
1040 Virtual Currency Question
The IRS is continuing its effort to inform taxpayers that virtual currency is considered property for federal tax purposes.