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Here’s how tax reform changed accounting methods for small businesses

Here’s how tax reform changed accounting methods for small businesses Tax Reform Tax Tip 2018-172 November 6, 2018 The Tax Cuts and Jobs Acts – better known simply as tax reform – allows more small business taxpayers to use the cash method of accounting. Tax reform now defines a small business taxpayer as a taxpayer […]

Tax reform to depreciation deduction affect farmers’ bottom line

Tax reform changes to depreciation deduction affect farmers’ bottom line IRS Tax Reform Tax Tip 2018-170 November 1, 2018 Last year’s Tax Cuts and Jobs Act made changes to how farmers and ranchers depreciate their farming business property. Depreciation is an annual income tax deduction. It allows a taxpayer to recover the cost or other […]

Publication helps taxpayers understand changes to backup withholding

Newly revised publication helps taxpayers understand changes to backup withholding IRS Tax Reform Tax Tip 2018-168 October 30, 2018 The IRS urges taxpayers who make payments or receive payments to check out Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). The newly revised publicationelps taxpayers understand how tax reform affects backup withholding. Backup withholding […]

Get Ready for Taxes: Get 2018 tax documents ready for filing season

Get Ready for Taxes: Get 2018 tax documents ready for upcoming filing season IR-2018-225 WASHINGTON –The IRS reminds taxpayers to keep a copy of their past tax returns and supporting documents for at least three years. Certain key information from their prior year return may be required to file in 2019. This is the fifth […]

Security Summit plans National Tax Security Awareness Week, Dec. 3-7

Security Summit plans National Tax Security Awareness Week, Dec. 3-7; New Twitter handle launched, ‘Dark Web’ webinar planned IR-2018-228 WASHINGTON – With the approach of the holidays and the upcoming tax season, the Internal Revenue Service, state tax agencies and the nation’s tax industry will sponsor a nationwide campaign in December urging people to better […]

Tax Reform limits like-kind exchanges

Beginning after Dec. 31, 2017, like-kind exchange applies only to real property held for use in a trade, business or for investment. Real property includes land and generally anything built on or attached to it. An exchange of real property held primarily for sale still doesn’t qualify. Exchanges of personal or intangible property, such as […]

S-corporations may want to convert to C-corporations

S-corporations may benefit from converting to C-corporations because of the new, flat 21 percent tax rate. Tax Reform changes affecting conversion: The corporation should report net adjustments attributable to revocation over six years. Cash distributions following the post-termination transition period may be treated as coming out of the corporation’s accumulated adjustments account and accumulated earnings […]

New tax law offers 100 percent, first-year ‘bonus’ depreciation

The Tax Cuts and Jobs Act increases the bonus depreciation percentage from 50 percent to 100 percent for qualified property acquired and placed in service after Sept. 27, 2017, and before Jan. 1, 2023. This law change: Generally, applies to depreciable business assets with a recovery period of 20 years or less and certain other […]

New tax law changes business expensing

A change in the tax law allows businesses to immediately expense more of the cost of certain business property. Many businesses can now write off most depreciable assets in the year they’re placed into service. The new law: Increased the maximum depreciation deduction to $1 million. Increased the phase-out threshold to $2.5 million. Expanded the […]

How tax reform affects farmers and ranchers

Many farmers and ranchers will benefit from changes brought about by the Tax Cuts and Jobs Act. Notable changes include: Net Operating Losses: Can now be carried forward indefinitely; Are limited to 80 percent of income and Can be carried back for two years. Pass-through entities: There’s a new 20-percent qualified business income deduction for […]