Recently In Tax News – September 17, 2019

September 17, 2019 Shamsey Oloko Leave a comment News

Treasury Department and IRS release final and proposed regs on the new 100% additional first-year depreciation deduction. . .

On September 13, the Treasury Department and the Internal Revenue Service today released final regulations and additional proposed regulations under § 168(k) of the Internal Revenue Code on the new 100% additional first-year depreciation deduction that allows businesses to write off most depreciable business assets in the year that the business places such assets into service.

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CLE Presentation by Shamsey Oloko

June 25, 2018 Shamsey Oloko Leave a comment Business Expense, Business Expenses, Business Tax Credits, Capital Gains, Capital Losses, Charitable Contributions, Charitable Organization, Child and Dependent Care Credit, Child and Dependent Care Creidt, Child Support, Child Tax Credit, Corporate Tax, Deductions, Dependents, Donald J. Trump, Education 529 Plans, Estate Tax, Filing Status, Form 1040, Gains & Losses, Home Equity Loans, Income, Income Exclusions, Income Tax, Income Tax Return, Independent Contractor, Interest Income, Internal Revenue Code, Internal Revenue Service, Itemized Deductions, Job Search Expenses, Married Filing Jointly, Married Filing Separately, Medical Expenses, Miscellaneous Expenses, Mortgage Interest Deduction, Moving Expenses, New York Income Tax, New York Property Tax, New York Sales Tax, New York State Tax, New York State Tax Law, News, Profits & Losses, S Corporations, Sales Tax, Schedule A, Standard Deductions, State & Local Taxes, State Sales Tax, Tax Cut and Jobs Act, Taxable Income, THORGOOD Law Firm

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The $10,000 SALT Limit and the Rental Real Estate

January 31, 2018 Shamsey Oloko Leave a comment Business Expenses, Income, Income Tax, Income Tax Return, Itemized Deductions, Local Income Tax, New York Income Tax, New York State Tax, News, Ordinary and Necessary Expenses, Profits & Losses, Real Estate Related, State & Local Taxes, Tax Cut and Jobs Act, Tax Legislation, Tax News, Taxable Income

The $10,000 SALT Limit and the Rental Real Estate

Under the recently enacted Tax Cuts and Jobs Act, State And Local Tax (SALT) deductions are limited to $10,000. How does this affect the individual taxpayer?

QUESTION: Are SALT payments made on my rental real estate subject to the $10,000 cap?

ANSWER: Generally, under the old law, all SALT payments were deductible. However, the new law caps deductible SALT at an aggregate of $10,000 for individual taxpayers.

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OF SALT, TAXES & MORTGAGES…

January 31, 2018 Shamsey Oloko Leave a comment Deductions, Donald J. Trump, Expenses Deductions, Filing Status, Form 1040, Income, Income Tax, Income Tax Return, Itemized Deductions, Local Income Tax, Married Filing Jointly, Married Filing Separately, New York Income Tax, New York Property Tax, New York State Tax, News, State & Local Taxes, Tax Cut and Jobs Act, Tax Legislation, Tax News, Taxable Income

OF SALT, TAXES AND MORTGAGES…

Do you pay State and Local Taxes (SALT)? If you live in any of New York, California, New Jersey, Connecticut, or any other of the so-called high-tax states, you likely pay more than the national average in SALT. Prior to 2018, you were allowed to itemize all of your SALT payments on your federal tax returns. However, the recently passed law, the Tax Cuts and Jobs Act, curbs the deductibility and otherwise affects you disproportionately, compared with the rest of the country. The changes to the deduction of State and Local Taxes (SALT) on federal tax returns are generally as follows

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AN ANALYSIS OF THE TAX CUTS AND JOBS ACT

January 29, 2018 Shamsey Oloko Leave a comment Affordable Care Act, Alimony deduction, Alternative Minimum Tax (AMT), Business Expenses, Capital Gains, Capital Losses, Charitable Contributions, Child and Dependent Care Credit, Child and Dependent Care Creidt, Child Tax Credit, Deductions, Dependents, Donald J. Trump, Education 529 Plans, Education Expenses, Estate Tax, Filing Status, Form 1040, Gains & Losses, Health Expenses, Income, Income Exclusions, Income Tax, Income Tax Return, Internal Revenue Code, Internal Revenue Service, Local Income Tax, Long-Term Capital Gain, Married Filing Jointly, Married Filing Separately, Medical Expenses, Miscellaneous Expenses, Mortgage Interest Deduction, News, Ordinary and Necessary Expenses, Sales Tax, Schedule A, Standard Deductions, State & Local Taxes, State Sales Tax, Tax Credit, Tax Cut and Jobs Act, Tax Legislation, Tax News, Taxable Income, THORGOOD Law Firm

January 2018

AN ANALYSIS OF THE TAX CUTS AND JOBS ACT

On December 22, 2017, after much, well-publicized legislative skirmishes, President Donald Trump signed into law H.R. 1, otherwise known as the “Tax Cuts and Jobs Act.” Provisions affecting individuals are generally effective beginning December 31, 2017 and expire on December 31, 2025. Most business-related provisions are permanent and are effective beginning December 31, 2017.

This new law is, by all accounts, the most significant revisions to the U.S. tax code since 1986, affecting almost all individual and business taxpayers. Our firm’s general assessment of the new law will therefore be a two-part series: this first part covers changes to individual taxpayers, and the second part will cover changes to business taxpayers.

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President Trump’s 2005 Tax Returns – What It Tells Us

March 15, 2017 Shamsey Oloko Leave a comment Alternative Minimum Tax (AMT), Audit, Bankruptcy, Business Expense, Business Expenses, Capital Gains, Capital Losses, Charitable Contributions, Deductions, Donald J. Trump, Form 1040, Gains & Losses, Income, Income Tax, Income Tax Return, Internal Revenue Code, News, Profits & Losses, Tax News

President Trump’s 2005 Tax Return – What It Tells Us

Yesterday, Tuesday March 14, 2017, while most of the New England area was buried in snow, MSNBC published President Trump’s 2005 income tax return – or at least the first two pages of it. What does the return tell us and what does it not?

The Basics – We know he had a positive income in the amount of $152,737,866 and $103,201,242 in tax write-offs. He paid a total of $38,435,451 in taxes for the year.

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About Trump’s Tax Plan

March 13, 2017 Shamsey Oloko 2 Comments Child and Dependent Care Credit, Child Tax Credit, Corporate Tax, Donald J. Trump, Income, Income Tax, News, Profits & Losses, Tax Credit

It remains to be seen the specific tax plan that Donald Trump will implement as President of the United States. The effects of Donald Trump’s tax plan will depend on taxpayers’ income and tax planning. Some think that Trump’s plan will significantly reduce income and corporate taxes, and eliminate the estate tax. It seems the plan’s largest effect on individual taxpayers will be to reduce the top tax bracket 6.6 percentage points from 39.6 percent to 33 percent.

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Most Confusing Parts Of The Income Tax Code, Part 1: Passive Activity Loss Rules

February 24, 2017 Shamsey Oloko Leave a comment News

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The first part of the series about the most confusing provisions of the Internal Revenue Code addresses passive activity loss rules.

Why Is It Confusing?

Many exceptions
Understanding defined terms
Calculating losses over time is complicated and cumbersome

A passive activity is any rental activity or any business in which a taxpayer does not materially participate. Nonpassive activities include businesses in which the taxpayer works on a regular, continuous, and substantial basis. Passive income does not include wages, salaries, portfolio, or investment income.

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Seven Deadly Tax Sins

January 10, 2017 Shamsey Oloko Leave a comment Audit, Business Expense, Business Expenses, Charitable Contributions, Child and Dependent Care Credit, Child Tax Credit, Civil Liabilities, Civil Penalties, Collection Activities, Criminal Liabilities, Delinquent Taxes, Dependents, Expenses Deductions, Filing Status, Fraudulent Return, Income Tax, Itemized Deductions, Late Returns, News, Qualified Expenses, Tax Evasion, Tax Fraud, Tax fraud & evasion

7 Deadly Tax Sins

When it comes to the IRS, some bad acts are worse than others. We have compiled below the top ones to avoid at all costs. However, if you should find yourself in the middle of one, you should certainly call tax attorneys to get you out of the bad situation (yes, it is a bad situation).

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Makric Enterprises, Inc. v. Commissioner: When Tax Mistakes Are Costly

July 8, 2016 Shamsey Oloko Leave a comment Corporate Tax, Corporate Tax, Income Tax, News, Tax Court, Taxable Income

Not knowing the details of a business transaction sounds preposterous on its face, especially when the ignorant taxpayer is the party which formulated the transaction. In the case of Makric Enterprises, Inc. v. Commissioner, TC Memo 2016-44, a failure to make sure that the right corporation was sold as part of the agreement literally proved costly to the taxpayers involved, to the tune of $2,839,780.

This tax matter involved two corporations. One of which was a holding company (Makric Enterprises, Inc.) which owned only one asset, the stock of a wholly owned subsidiary (Alpha Circuits, Inc.). A third party expressed interest in purchasing the business conducted by Alpha.

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