Tax

People interested in Qualified Opportunity Zone (QOZ) investments, which invest capital gains proceeds in economically underdeveloped areas and can earn tax-free returns, are now able to move forward with more certainty. Earlier this month, the U.S. Treasury Department issued more proposed regulations on QOZ investments that helped clarify investor concerns and ease their hesitation...

Most individuals don’t regard themselves as businesses, trying to turn a profit and beat the competition. But, occasionally, it may help to look at your financial situation this way to determine where you might cut expenses and boost cash flow. Here are some tips. Lay out your financials Where an executive might reach for financial statements to get a read on the company’s standing, you can create or update a net worth statement...

Question: Some of our employees are considering buying short-term, limited-duration health insurance policies instead of enrolling in our employer-sponsored health care plan. Will these employees have special enrollment rights in our group plan if they lose eligibility for short-term, limited-duration coverage? Answer: It’s likely that employees who lose eligibility for short-term, limited-duration health insurance will be entitled to special enrollment rights under your company’s group health plan — assuming they’re otherwise eligible to enroll in the plan at that time. Eligible employees (and their eligible dependents) are entitled to HIPAA special enrollment rights under your company’s plan if they lose eligibility for health insurance coverage (or if they lose eligibility for coverage under another group health plan)...

In very late January, the IRS released the 2018 Form 8941, to be used by eligible small employers to calculate their health care tax credits. If you may qualify for this potentially valuable tax break, ask your tax preparer about claiming the credit on your 2018 return or filing an amended return if you’ve already filed. Background on the credit The small business health care tax credit generally is available to employers that: Have fewer than 25 employees, Pay average annual wages of less than $50,000 (indexed), and Contribute a uniform percentage of at least 50% of the premium costs for employee health insurance coverage obtained through a Small Business Health Options Program (SHOP), unless an exception applies. The maximum tax credit is generally 50% of employer-paid premiums (35% for tax-exempt eligible small employers) and can be taken for only two tax years, which must be consecutive...

“If you like your doctor, you can keep your doctor.” President Obama made this controversial and widely quoted statement about a decade ago while he was promoting the Affordable Care Act (ACA) before its enactment. The quote recognizes that most people prefer to choose their own physicians. But health care market dynamics, even before passage of the ACA, were already driving employers to incentivize employees to choose providers that satisfied “preferred provider” criteria — even if doing so meant they’d have to drop their old doctors...

As a business owner, you should be aware of some recent federal tax legislation changes. Many of the changes can affect the bottom line for the business as well as you as the business owner — some in a good way and some in a bad way. The taxable income of a C-corporation is now taxed at a flat 21 percent rate. Previously, the tax rates generally ranged from 15 percent to 35 percent (but some income was taxed as high as 39 percent)...

As the 2018 tax-filing season heats up, investors have much to consider. Whether you structured your portfolio to emphasize income over growth — or vice versa, or perhaps a balance of the two — will have a substantial impact on your tax liability. Let’s take a look at a couple of the most significant “big picture” issues that affect income vs. growth...

Many taxpayers are receiving lower tax refunds on their 2018 income tax returns and are incorrectly assuming that Tax Cuts and Jobs Act (TCJA) did not benefit them. There exists a lot of misinformation and misunderstanding concerning the TCJA. The TCJA reduced individual tax rates and brackets beginning in 2018. The IRS also modified the federal income tax payroll withholding tables to reduce the amount of federal income tax withheld from paychecks...

On January 18, the IRS released final regulations related to the 199A pass-through deduction. Although many open items were addressed throughout the 247 pages, the IRS made it clear they were not going to provide bright-line tests for several of the most significant areas related to the deduction. The phrase “facts and circumstances” was used over twenty times in the final regulations and preamble, meaning for many taxpayers, determining the impact on their business can only be achieved by examining their specific fact patterns. Although this approach generally requires more analysis, it also can provide many planning opportunities to maximize the deduction...

The IRS released Notice 2019-07, which offers taxpayers much needed guidance about section 199A as it relates to real estate ownership and income. If a taxpayer can satisfy all the requirements of this safe harbor, then they will qualify for the new 199A deduction. It is important to note that just because a taxpayer cannot satisfy the safe harbor requirements that real estate activities will not qualify as a trade or business. It will be based on facts and circumstances if outside the safe harbor...