Employee Benefits Blog

Posts tagged Tax Cuts & Jobs Act

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The IRS Puts the Finishing Touches on the 20% Deduction

Final Section 199A Regulations

While most of the government was shut down, parts of the Treasury Department, including IRS personnel responsible for implementing late December 2017’s Tax Cuts and Jobs Act (TCJA), remained open. One of the most significant features and largest potential benefits in the TCJA for business owners is its introduction of Internal Revenue Code Section 199A, commonly referred to as the 20% qualified business deduction or QBI deduction. This deduction is temporary and applicable to years after December 31, 2017 and before January 1, 2026. A few days ago (and just in time for tax return filing season), the IRS provided final regulations and some related material explaining how to implement this deduction. The purpose of this article is to highlight specific features in the final regulations, relative to proposed regulations that were issued in August.

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Tax Season Trap Door: Business Interest Expense Limitation for Pass-through Entities & their Owners

This article assumes that its readers are familiar with the basics of 163(j). If that assumption is false, please first read our earlier article, written just after the Tax Cuts and Jobs Act was passed. Our previous article is a summary of the Business Interest Expense Limitation as written in the Code, while this article explains the new guidance, primarily derived from the proposed regulations.

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A Win for Rental Real Estate – Section 199A Deduction Safe Harbor

(An Explanation of IRS Notice 2019-07)

This month as final regulations were issued under Internal Revenue Code Section §199A, the IRS also issued a proposed revenue procedure that provides a “safe harbor” method of treating certain rental activity as a trade or business for purposes of §199A. Notice 2019-07 comes as a relief to many taxpayers who own real estate and were questioning whether they could benefit from the Section 199A deduction this tax season.

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New Guidance on Tax Reform’s Impact on Parking: A Summary for Tax-Exempt Employers

The Tax Cuts and Jobs Act of 2017 (the Act) made very significant changes to the taxation of employers on qualified transportation fringes (QTFs) that they offer to their employees. QTFs, which are not taxable to the employee, include “qualified parking,” which is defined as parking on or near the business premises of the employer or on or near a location from which the employee commutes to work. Qualified parking does not include any parking on or near the employee’s residence.

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New Guidance on Tax Reform’s Impact on Parking: A Summary for Taxable Employers

The Tax Cuts and Jobs Act of 2017 (the Act) made very significant changes to the taxation of employers on qualified transportation fringes (QTFs) that they offer to their employees. QTFs, which are not taxable to the employee, include “qualified parking,” which is defined as parking on or near the business premises of the employer or on or near a location from which the employee commutes to work. Qualified parking does not include any parking on or near the employee’s residence.

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GILTI as Charged

(A new tax on foreign earnings – explained in plain English)

Earlier this year, we provided a summary article entitled International Tax Provisions of the Tax Cuts and Jobs Act. As its name implies, it provides an overview of a number of the features in the December 2017’s Tax Cuts and Jobs Act (the “Act”) that affected foreign activity. We followed that with a more detailed article addressing the most urgent international tax aspect in the Act: The One-time Deemed Dividend Repatriation Tax on Deferred Foreign Earnings that was due (in part) in April 2018.