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In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are now restrictions that make these deductions harder to take.

a pier on a stormy cloudy day with rough waves in the water; image used for blog post about casualty loss tax deduction

What’s considered a casualty for tax purposes? It’s a sudden, unexpected or unusual event, such as a hurricane, tornado, flood, earthquake, fire, act of vandalism or a terrorist attack.

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Continue Reading Claiming Casualty Loss Tax Deduction in Certain Situations

As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from tax savings with Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to claim immediate deductions for qualified assets, instead of taking depreciation deductions over time.

Even better, the Sec. 179 deduction isn’t the only avenue for immediate tax write-offs for qualified assets. Under the 100% bonus depreciation tax break, the entire cost of eligible assets placed in service in 2020 can be written off this year.

white calculator with the number 0 on screen; image used for blog post about tax savings for small businesses

But to benefit for this tax year, you need to buy and place qualifying assets in service by December 31.

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Continue Reading Tax Savings for Small Businesses – Before Dec. 31

In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through 2025 if they’re considered expenses for the production of income.

view of a desk stretching from wall to wall with two separate laptop set ups; image used for blog post about tax deductible expenses for investors or traders

But they are deductible if they’re considered trade or business expenses. (For tax years before 2018, production-of-income expenses were deductible, but were included in miscellaneous itemized deductions, which were subject to a 2%-of-adjusted-gross-income floor.)

In order to deduct investment-related expenses as business expenses, you must figure out if you’re an investor or a trader — and be aware that it’s more advantageous (and difficult) to qualify for trader status.

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Continue Reading Investor or Trader? Deductible Business Expenses

Last week, the IRS issued proposed regulations, which will help to simplify the rules around how not-for-profit entities should calculate their unrelated business income tax (UBIT) for more than one unrelated trade or business.

close up angle of three people sitting at a wooden table near a window overlooking the city with pens and notepads; image used for blog post for IRS new regulations for not-for-profits UBIT calculation

UBIT is applicable to any trade or business activity a not-for-profit engages in that is not substantially related to the tax-exempt…

Russ: This is the PKF Texas Entrepreneur’s Playbook. I’m Russ Capper, this week’s guest host, and I’m here with Frank Landreneau, Director and one of the faces of the International Tax team. Frank, welcome back to the Playbook.

Frank: Thanks, Russ. Thanks for having me; always a pleasure.

Russ: You bet. Next time you’re on I am going to count to see how many times have you been on, because I’m sure it’s more than anybody else.

Frank: Okay, great.

Russ: But our topic today is primarily going to be the Tax Cut Jobs Act that I think was passed in 2017, started in 2018, and it’s mind boggling to me, because we’re still sorting that thing out. Is that right?

Frank: That’s exactly right. And it’s been a little bit over two years, but we’re still getting guidance even now and even there’s pending guidance that we’re anticipating on getting even this year as we speak.

Russ: How does a business person make decisions based upon this thing playing out over such a long period of time?

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Continue Reading Restructuring Strategies for Small- to Medium-Sized Businesses

The deductibility of most charitable gifts hasn’t changed since passage of the Tax Cuts and Jobs Act, but some recordkeeping requirements have. Helping your donors who itemize deductions understand the rules and benefits of their gifts can strengthen your not-for-profit’s ties with them — and may help increase contributions.

woman holding three knit sweaters; image used for blog post about tax implications on not-for-profit donors

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Continue Reading The Tax Implications on Your Not-for-Profit’s Donors

Many taxpayers make charitable gifts — because they’re generous and they want to save money on their federal tax bills.

a box wrapped in brown paper wrapping with a pink ribbon bow tied on top; image used for a blog post about deductible charitable gifts on a tax return

But with the tax law changes that went into effect a couple years ago and the many rules that apply to charitable deductions, you may no longer get a tax break for your generosity.

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Continue Reading Are Charitable Gifts Deductible on Your Tax Return?

A much-hated tax on not-for-profit organizations is on the way out. At the end of 2019, Congress repealed a provision of 2017’s Tax Cuts and Jobs Act (TCJA), which triggered the unrelated business income tax (UBIT) of 21% on not-for-profit employers that provide employees with transportation fringe benefits.

a red monorail train speeding overhead people walking through a transportation terminal; image used for UBIT transportation fringe benefits blog post

Unequipped to handle the additional administrative burdens and compliance costs, thousands of not-for-profits had complained — and legislators apparently listened.

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Continue Reading Repealed: UBIT on Transportation Fringe Benefits

As part of a year-end budget bill, Congress just passed a package of tax provisions that will provide savings for some taxpayers. The White House has announced President Trump will sign the Further Consolidated Appropriations Act of 2020 into law. It also includes a retirement-related law titled the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

Here’s a rundown of some provisions in the two laws:

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Continue Reading More Tax Provisions from Recent Tax Law Change Update

With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties. It’s a good idea to understand the tax rules associated with these expenses.

a close up photo of a green christmas tree with red and pink glass ornaments with two brown-haired women in the background; image used for a blog post about tax breaks from holiday parties and gifts

Are they tax deductible by your business and is the value taxable to the recipients?

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Continue Reading How Holiday Parties and Gifts Can Provide Tax Breaks