Tag Archive for Income Tax

The Down And Dirty On The New Tax Rules And Estate Planning

Kazim Qasim, Tax Advisor, Tax Blog, Orlando, Florida, USA, TaxConnections

Most articles about the passage of the Tax Cuts and Jobs Act in December buzz about the resulting income tax consequences for individuals and businesses.

But what about the intersection of the TCJA and estate planning?

In a report by Stefi Gascon Hafen, published by AccountingToday, she comes to some interesting conclusions about the TCJA’s significant impact on estate planning. Read more

Changes To Enterprise Investment Scheme (EIS) And Seed Enterprise Investment Scheme (SEIS) Relief

Kevin Offer, Tax Advisor, Tax Blog, London, UK, TaxConnections

Enterprise Investment Scheme and Seed Enterprise Investment Scheme relief are being considered by a large number of companies at the moment as a way of raising funds but at the same time enabling investors to obtain attractive income tax and capital gains tax reliefs.

A number of cases have been heard before the First tier and Upper Tribunals that demonstrate how easy it is to fall foul of the complex provisions granting these reliefs. Moreover, there have been a number of changes to the legislation in recent years, and more changes have been announced that will have a significant impact on the operation of the relief.

Risk To Capital Condition Read more

Tax Compliance: What You Need To Know Before You Travel

Maurice Glazer, Dallas, TX, Tax Advisor, Tax Blog, TaxConnections

Thinking of moving to Mexico or Belize to live comfortably? Are you making an income in Mexico or the US you have not reported to the US government? Mexico has changed their tax laws and tax penalties and you need to be aware of them. Mexico now wants to know how much money you have in your US ban accounts.

You must be compliant and Maurice Glazer shares his experience working with taxpayers who decided to move to Belize or Mexico to live. Avoid getting arrested and having your US passport confiscated by being compliant. Read more

What Expenses Does Mileage Reimbursement Cover?

MileIQ, Business Miles Tracker

A mileage reimbursement program can be key for many businesses. But, often employees ask, “What expenses does a mileage reimbursement cover?” Let’s go over that, as well as some tips for a great reimbursement program.

What’s Included In The Mileage Reimbursement?

The mileage reimbursement covers the cost of operating a personal vehicle for business reasons. This includes the cost of things like gasoline, oil, maintenance and wear-and-tear.

Your business can decide how to handle other driving-related expenses. This may include the costs of parking and tolls.

Read more

Capital v Operating Lease—Tax Reporting Implications

We often encounter taxpayers who do not quite fully understand how to report for income tax purposes the lease agreements they have entered into for business use assets, particularly automobiles. Leased property includes real estate, machinery, and other items that a taxpayer uses in his or her business and does not own.

Payments for the use of this property may be deducted as long as they are ordinary, necessary and reasonable. However, special rules and limitations apply to business use of the taxpayer’s rented personal residence and leased automobiles.  More information on these topics can be found in: Read more

Are California Taxes That High?

Are California’s taxes high? I was asked this question recently by a reporter with Politifact California. Assemblymember Travis Allen who is running for governor had stated that California had the highest taxes. His website says that California has the highest personal income tax and state sales tax rates. [Chris Nichols article of 7/11/17]

If just looking at the rate structure, those are correct statements. The Federation of Tax Administrators posts helpful and current tables of the PIT and sales tax rates among the states. Read more

Tax Complexity And Filing Status

Annette Nellen

It doesn’t seem that one’s filing status should be confusing. You’re single or you’re married. But, many people qualify for head-of-household status. That one is confusing because of its multi-faceted definition.

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Digital Nomads Using The FEIE To Avoid Paying Income Tax

John Richardson, digital nomad, FEIE

Digital Nomads are entrepreneurs who run location independent business. Many digital nomads travel outside the United States with their laptops. Although they have a presence in other countries, they rarely stay long enough in any country to become tax residents of those other countries. They typically conduct their businesses through non-U.S. (foreign) corporations and draw a salary from those foreign corporations. By drawing a salary from those foreign corporations, they ensure that their income is foreign and they they avoid paying U.S. self-employment taxes.

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Income 54: Shareholders of Partnerships and S Corporations

John Dundon

The Colorado Department of Revenue has finally revised its guidelines in FYI Income 54 regarding people who do not live in Colorado but are partners and/or shareholders of partnerships and/or S corporations in Colorado, ensuring that pass-through entities pay Colorado income tax on their Colorado-source income. This Enrolled Agent says “About Time!”

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Rental Expenses Ireland – High Court Decision

Claire McNamara

The High Court decision in Revenue Commissioners v Thomas Collins has just been published.

It states that contrary to Revenue’s position, the NPPR (Non Principal Private Residence) charge was in fact an “allowable” expense against rental profits under Section 97(2) TCA 1997.

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Colorado Year End Tax Update: Focus on USE TAX – 50 Points

John Dundon

It is that time of year again where we work ourselves into a tizzy finishing off the year “strong” and simultaneously enduring another holiday season whilst purportedly planning for a new year. YIKES!

With internet sales exploding, it is a good idea to review each transaction you make to know if sales tax is being charged. If it is not, chances are good that you owe Colorado USE Tax on the item purchased.

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