Business Taxes

  • IRS “Tax Tip” Covers Small Business Health Care Tax Credit

    The IRS released a notice for small businesses employing less than 25 people, outlining how they may be able to take advantage of the Small Business Health Care Tax Credit. The “Tax Tip” covers the prerequisites for claiming the tax credit, which forms are needed, and additional resources. Read the full notice below:

  • IRS Issues Revenue Ruling on Employee Mass Transit Benefits

    The Internal Revenue Service has issued a new revenue ruling, 2014-32, on companies that provide mass transit passes as fringe benefits to employees. The ruling covers eight specific situations, and updates previous guidance on this topic.

  • Deducting Business Expenses

    One of the thornier questions at tax time centers on what may and may not be deducted as a business expense. The rules change frequently, in response both to new rulings and to policies enacted by the Internal Revenue Service. But the general guidelines are contained in the Publication 535, Business Expenses. Here is a…

  • What is a specified service trade or business (SSTB)?

    Businesses or trades involved in the following service fields are considered a specified service trade or business for the purposes of claiming the QBI deduction: Health Law Accounting Actuarial science Performing arts Consulting Athletics Financial services Brokerage services Investing and investment management Trading or dealing in securities Partnership interests Commodities The IRS also identifies “any…

  • What is the QBI rental real estate safe harbor rule?

    Taxpayers who derive income from a rental real estate enterprise and meet the following requirements may claim the QBI safe harbor outlined in Rev. Proc. 2019-38: Separate books and records are maintained to reflect income and expenses for each rental real estate enterprise. For rental real estate enterprises that have been in existence less than…

  • What is the Qualified Business Income Deduction?

    The section 199A qualified business income (QBI) deduction was introduced by the Tax Cuts and Jobs Act of 2017. While the TCJA cut the C-corporation tax rate to 21 percent, the QBI deduction lets taxpayers deduct qualifying income connected to certain passthrough entities: 20 percent of net qualified business income plus 20 percent of qualified…

  • What types of business income qualify for the QBI deduction?

    Taxpayers who have taxable income that is connected to the following types of businesses may qualify for QBI: Sole proprietorship Partnership (as a partner) S corporation (as a shareholder) Trust or estate (as a beneficiary) Farms Certain rental properties Income from a specified service trade or business may also qualify if it is below a…