On January 16, 2019, the IRS issued some relief from the penalty for underpayment of estimated income tax. Individual taxpayers who paid at least 85% of their total tax liability during the year through federal income tax withholding or quarterly estimated tax payments or a combination of the two will not be subject to the underpayment penalty. Prior to this relief, under Sec. 6654(d)(1)(B), the required annual income tax payment an individual taxpayer is required to make is

The “Tax Cuts and Jobs Act” of 2017 brought sweeping changes to the standard deduction and allowable itemized deductions for taxpayers which will result in significantly less taxpayers claiming itemized deductions (refer to the prior BKC post for more details - Standard Deduction & Itemized Deductions | Tax Reform Update. As a result of the changes, the Tax Policy Center estimates 21 million taxpayers will stop claiming charitable deductions. According to estimates, househo

The Tax Cuts and Jobs Act brought significant changes to many individual tax regulations, including those dealing with the standard deduction and itemized deductions. There are several factors to consider that may change whether the standard deduction or itemized deductions are more beneficial for you beginning in 2018. The Tax Cuts and Jobs Act also tweaks or eliminates various itemized deductions. The following is a brief summary of the changes to itemized deductions for 2

Prior to 2018, employees were able to take a deduction from their gross income on qualified moving expenses. The employee needed to meet certain tests such as the time test and distance test to qualify for the deduction. A member of the armed forces on active duty that moved because of a permanent change of station was not required to meet the time and distance test. The deduction included the cost of moving household goods, travel expenses, storage, and the reimbursement fo

As a business owner we don’t plan to generate a loss, but due unexpected customer loss, taking advantage of generous tax depreciation rules

Increased deductions for bonus depreciation and Section 179 expense are just some of the potential tax savings available for businesses under the new tax reform approved by Congress in the “Tax Cuts and Jobs Act.” Under the previous tax rules, bonus depreciation was limited to 50% of eligible new property. The tax reform extended and modified bonus depreciation to allow businesses to immediately deduct 100% of eligible property (now includes new AND used property) acquired an

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