Business Taxes

  • What is the taxable income QBI threshold for 2020?

    There are two income thresholds for claiming QBI in tax year 2020: $163,300 for single taxpayers, heads of household, qualifying widows and widowers, or trusts and estates $326,600 for married couples filing jointly Return to Taxing Subjects frequently asked questions. Related FAQs: What is the Qualified Business Income Deduction? What types of business income qualify…

  • IRS to Mask Key Details on Business Transcript

    After Dec. 12, business tax transcripts will soon be a little less informative—for good reason. The IRS will start masking sensitive data on the transcripts to protect businesses from identity theft beginning Dec. 13. The announcement from the IRS provides 30 days for adjustments from stakeholders. The agency started informing tax pros of the change…

  • New Guidance Clears Up Partnership Deduction for State, Local Taxes

    A new notice from the Internal Revenue Service reveals some new rules that are expected to be included in upcoming proposed regulations. Notice 2020-75 spells out the proposed regulations clarifying that state and local income taxes imposed on and paid by a partnership or S corporation on its income are allowed to be claimed as…

  • New 1065 Instructions Unveiled

    The Internal Revenue Service has released an early draft of the instructions to Form 1065, U.S. Return for Partnership Income for tax year 2020 (filing season 2021). The changes include revised instructions for partnerships that are required to report capital accounts to partners on Schedule K-1 (Form 1065). The revision, the IRS says, is part…

  • Treasury Says SBA Has Simpler Forgiveness Application for Certain PPP Loans

    The Treasury Department last week announced that the Small Business Administration is making it easier to request Paycheck Protection Program (PPP) loan forgiveness for loans that are $50,000 or less.   What is the Paycheck Protection Program? The Paycheck Protection Program was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020…

  • Final Regulations for Business Meals and Entertainment Deductions Now Available

    The Internal Revenue Service closed out September by announcing the publication of final regulations for the business-related entertainment deductions that were removed from section 274 by the Tax Cuts and Jobs Act. Corporations celebrated the new 21 percent tax rate and small businesses took advantage of the section 199A qualified business deduction, but the TCJA…

  • New Downloadable Tool Helps Small Business with Employee Withholding

    The Internal Revenue Service has come up with a new online tool that’s designed to help employers—especially those in small business—easily determine the correct amount of income tax to withhold from workers’ pay. It’s called the Income Tax Withholding Assistant for Employers, and the new spreadsheet-based tool is designed to help employers transition to the…

  • Safe Harbor Clarifies QBI Deduction for Some Rental Properties

    Taxpayers interested in taking the section 199A qualified business income deduction (QBI) for their rental property will be happy to learn that the IRS announced a finalized safe harbor rule this week. QBI was introduced in the Tax Cuts and Jobs Act as tax relief for businesses not eligible for the new 21-percent C corporation…

  • IRS to Self-Employed Taxpayers: Use the Tax Withholding Estimator

    According to the IRS, self-employed taxpayers should use the Tax Withholding Estimator when they perform their next “paycheck checkup.” IR-2019-149 is the latest press release advertising the Tax Withholding Estimator, the agency’s newest online tool: “The estimator is an expanded, mobile-friendly online tool that replaced the Withholding Calculator, which since 2001 had offered workers an…

  • Tax Tips for New Business Owners

    Owning your own business can be a very rewarding experience. The process of starting a business, however, can seem overwhelming to the uninitiated. There are so many choices to consider – from business plans to market strategies and tax responsibilities. The IRS has put together a quick list of items any new owner of a…