Similar to a Rube Goldberg contraption, the Internal Revenue Code is needlessly complex. Here are a few ideas for simplification and a request for readers to suggest others.
Results for ""TCJA""
The IRS issued proposed regulations on the operation of new Sec. 1446(f), which requires withholding on the transfer of a partnership interest described in Sec. 864(c)(8) (gain or loss of foreign persons from the sale or exchange of certain partnership interests).
This discussion reviews the mechanics of the gross receipts test, highlights several potential traps for the unwary, and raises several common but still unanswered questions.
Updated procedures provide a streamlined way to comply with Sec. 451(b), which does not involve filing Form 3115 or attaching a separate statement to the tax return.
The IRS issued a safe-harbor procedure that taxpayers may follow for determining the deduction for depreciating passenger vehicles when they are eligible for 100% bonus depreciation but are also subject to the Sec. 280F limits on deductions for luxury automobiles.
The TCJA substantially modified Sec. 163(j) so that the business interest expense in a tax year is limited to the sum of the taxpayer’s business interest income, 30% of the taxpayer’s adjusted taxable income, and the taxpayer’s floor plan financing interest.
The TCJA and the PATH Act expanded the penalties on tax return preparers who fail to follow due-diligence procedures when clients claim certain credits or head-of-household filing status.
The TCJA amended Sec. 461 to include a subsection (l), which disallows excess business losses of noncorporate taxpayers if the amount of the loss is in excess of $250,000 ($500,000 in the case of a joint return).
Now that IRS forms have been created to reflect the changes of the TCJA, a professor-prepared tax return assignment gives faculty an opportunity to introduce their students to new tax law complexities.
This discussion addresses the proposed changes to the operation of Sec. 956, potential planning opportunities under the proposed regulations, and certain outstanding issues.
This discussion highlights the treatment of an “electing real property trade or business” for purposes of the interest expense deduction limitation of Sec. 163(j).
An erroneously claimed qualified business income deduction under Sec. 199A can expose a taxpayer to a substantial underpayment penalty.
The TCJA significantly broadened the application of loss limitation rules.
This item summarizes some fundamental income tax considerations for employers related to stock-based compensation under U.S. federal income tax laws.
It is important to note the role trust accounting income plays when preparing the annual income tax return for the trust, a role that has become more prominent since the enactment of the TCJA.
This discussion focuses on two notable business provisions in the TCJA affecting sports franchises: new like-kind exchange provisions under Sec. 1031 and the QBI deduction under Sec. 199A.
The disparate tax treatment between trusts and individuals has grown even more pronounced than it was before the TCJA was enacted.
This article provides an overview of the rules defining a dependent and addresses the issue of a child’s receipt of Supplemental Security Income.
Proper advance planning is imperative to maximize the benefits of the TCJA provisions.
This article discusses the new items practitioners should be aware of.