2020 – 09/22 Final guidance is available for decedent’s estates and non-grantor trusts on the treatment of certain deductions. The Tax Cuts and Jobs Act prohibits individuals, estates and non-grantor trusts from claiming miscellaneous itemized deductions for tax years after 2017 and before 2026. The final regulations clarify deductions that don’t fall under that heading, which can be used to figure adjusted gross income, including administrative costs to manage property held in the estate or trust. The regs also provide guidance on determining the character and treatment of deductions that exceed gross income to the beneficiary, when the estate or trust is terminated. Here’s more:
Similar Posts
August 31st Deadline Approaching
2020 – 08/25 The deadline to return distributions to certain retirement accounts is coming up. IRA owners, beneficiaries or workplace retirement plan participants who received a required minimum distribution (RMD) this year have until Aug. 31 to roll over or repay the distributions to avoid paying taxes. The CARES Act waived RMDs during 2020 for…
IRS Resumes Enforcement Activities
2020 – 08/14 The IRS is partially resuming its enforcement activities. In March, the tax agency’s Small Business/Self-Employed (SB/SE) Division announced that it was suspending some enforcement activities due to the COVID-19 crisis. In cases where a taxpayer may have been affected by a disaster, the IRS could use “soft contact” procedures to contact the…
Choose the Right Financial Engagement for Your Business
Navigating financial reporting can feel overwhelming when terms like ‘audit,’ ‘review,’ or ‘agreed-upon procedures’ are thrown around. But choosing the right engagement for your business isn’t just about compliance—it’s about saving money, improving operations, and making informed decisions. Here’s what you need to know to pick the right service for your needs. Audits: The Gold…
IRS announces per diem rates for business travel
2020 – 09/23 In Notice 2020-71, the IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses…
5 common accounting software mistakes to avoid
2020 – 08/12 No company can afford to operate without the right accounting software. When considering whether to buy a new product or upgrade their current solutions, however, business owners often fall prey to some common mistakes. Here are five gaffes to avoid: 1. Relying on a generic solution. Some companies rush into buying an…
Qualifying for a Home Office Deduction
2020 – 08/10 With millions of taxpayers working from home due to COVID-19, many people may be wondering about the possibility of claiming a home office deduction on their 2020 tax returns. In a tax tip, the IRS lists several points about qualifying for the home office deduction, including the fact that employees aren’t currently…
