In general, real property and improvements to real property are depreciated over either 27.5 years (residential property) or 39 years (commercial property). In the past, major improvements such as HVAC replacements and roofs were caught by this [...]
Form W-4, Employee's Withholding Certificate, has been redesigned for 2020. Previously, income tax withholding was based on an employee's marital status and withholding allowances or tied to the value of the personal exemption. With the revised Form W-4, [...]
A common question that clients ask us is this: "May my business claim a deduction when a customer fails to pay us?" The answer is, "It depends." Every business must adopt a "method of accounting" in its [...]
Generally, debt that is forgiven or canceled by a lender is considered taxable income by the IRS and must be included as income on your tax return. When that debt is forgiven, negotiated down (when you pay [...]
The IRS has issued 128 pages of proposed regulations clarifying the application of the new 20% pass-through income deduction. The main takeaway is that the regulations are quite pro-taxpayer. For instance, the law states that the 20% [...]
The tax bill has finally cleared Congress. It contains significant changes that will affect our clients. Perhaps the most significant is a new 20% deduction for "pass-through income" from sole proprietorships, partnerships, and S corporations. This provision [...]
