In the blogs: Incoming!
January 16, 2018, 11:19 p.m. EST
Repositioning real estate; state-level changes; the future of prep; and other highlights from our favorite tax bloggers.
- Taxable Talk (http://www.taxabletalk.com): What to remind clients about incoming 1099s, starting with who doesn’t get them.
- Rubin on Tax (http://rubinontax.floridatax.com): Nonresidents with a significant portfolio of U.S. stocks typically use a non-U.S. corporation to hold their portfolio (U.S. stocks are generally subject to U.S. estate taxes at the death of their owner and, absent treaty relief, a nonresident owner can only exempt $60,000 in assets from U.S. estate taxes). Still true?
- Tax Girl (http://blogs.forbes.com/kellyphillipserb): Would someone who owns business real property in their own name (not in a LLC or partnership or corporation) and files on Schedule E face the $10,000 cap? Could the same appropriate real estate be placed it into a LLC to avoid the $10,000 cap on state and local taxes by using Schedule C or filing a separate return for the LLC? Taxgirl says …
- Summing It Up (http://blog.freedmaxick.com/summing-it-up): Federal reform is becoming a recurring subject of discussion (albeit a bramble bush of one). Here’s a look at the challenges and potential impact at the state level as a result of the federal tax reform for most businesses. Potential understatement of the week: “The development of how states will respond to the federal tax reform will be interesting to follow throughout 2018.”
- Procedurally Taxing http://procedurallytaxing.com): The Ninth Circuit holds in Duggan v. Commissioner that the 30-day period to file a Tax Court collection due process petition is jurisdictional and not subject to equitable tolling under the Supreme Court’s post-2004 case law that generally excludes filing deadlines from jurisdictional status.
- Federal Tax Crimes (http://federaltaxcrimes.blogspot.com/): What’s “worthy of mention” in United States v. Parker, where the Fourth Circuit affirms a conviction for conspiring to file false returns and presenting false claims to the IRS. More than meets the eye.
- Tax Foundation (http://taxfoundation.org/blog): The Supreme Court has agreed to hear South Dakota v. Wayfair Inc., paving the way for a pivotal decision in the years-long debate over how to apply sales taxes to online retail activity.
- Turbotax (http://Blog.turbotax.intuit.com): What to tell them about finally snagging that dream home.
- Solutions for CPA Firm Leaders (http://ritakeller.com/blog/): Thorny question of the week: Have you examined how work is actually prepared, processed and completed inside your firm lately? We’ll get back to you on that … .
- Taxjar (http://blog.taxjar.com/): States’ taxing authorities’ contact info, “an actual helpful human who can answer your sales tax questions.” We hope.
- The Income Tax School (http://www.theincometaxschool.com/blog/): Favorite opening of the week:” Major change will always result in the spread of rumors, myths, and misconceptions. It’s just human nature. The new tax law is no different.” So what is the future of prep?
- Dinesen Tax Times (http://dinesentax.com/blog): And among the most important reminders for some biz clients, hammer again the differences between employee and independent contractor.
- Liberty Tax (https://www.libertytax.com/tax-lounge/): It’s up, it’s down, it’s real, it’s ether: But do you have to pay taxes on bitcoin and other forms of cryptocurrency?
- Tax Musings of a Burbank CPA (http://briantstonercpa.com/blog/#sthash.OkfGp9NM.dpbs): The biggest federal tax reform bill since 1986 might include some tweaks on what “a child” is. Under the TCJA, the Child Tax Credit was increased from $1,000 to $2,000, of which $1,400 is actually refundable. At the same time, the personal exemptions, a deduction of $4,150 per dependent were repealed. At the same time, a $500 dependent tax credit (usually called a family credit) is allowed for each “qualifying dependent” on the return, partially making up for the loss of personal exemptions. Makes us want to reach for a revolving drum.
- John R. Dundon II EA (http://johnrdundon.com/): How reform amends IRC Sec. 165, further restricting our ability as individual taxpayers to write off casualty losses going forward solely to declared “disaster areas.” And “dear reader, please be advised that this change will have profound implications that will take years to play out, if not for you then perhaps someone close to you.”
- Smith & Gesteland (https://sgcpa.com/resources/focus-blog/): Some depreciation changes are also retroactive to September; some kicked in for tax years beginning on or after last Jan. 1, 2018. Everyone with business assets will be affected by the changes.
- Backtaxeshelp (http://www.backtaxeshelp.com/tax-blog/): What to remind them about (i.e., the reasons) that getting a big refund is not necessarily a good idea.
- Sageworks (https://www.sageworks.com/blog/): Your biz clients probably like to talk about every aspect of their business except what might happen to the business when they’re no longer working in it. Helping clients prepare for and comprehend “the biggest financial event of their lives — the sale of their business.”