Posts Tagged ‘Business Tax’
IRS Expands Digital Asset Question on Draft Version of 2022 Form 1040
At a glance Main takeaway: For tax year 2022, the IRS seeks to expand Form 1040 reporting to require disclosure of transfers of digital assets, whether taxable or not. Impact on your business: This is a welcome change in the tax community and a signal to taxpayers to start tracking their digital assets more closely.…
Read MoreBonus Depreciation Phase Out and What it Means for Your Business
At a glance The main takeaway: Bonus depreciation, a favorable, bipartisan-supported tax provision, is unlikely to be extended before December 31, 2022. While it’s not recommended to make large investments for the sake of a potential tax break, however, strategic investments should be top of mind for businesses. Impact on your business: Despite its popularity,…
Read MoreInflation Tax Planning for Companies with Inventory
At a glance The main takeaway: Consumers and businesses alike are facing inflation not seen in decades, with companies often paying double-digit price increases to replenish inventories. This in turn requires them to raise their prices, leading to higher gross revenues and illusory profits. In certain situations, businesses can get temporary relief from the tax…
Read MoreCareers: Transaction Advisory
Update: Federal Judge Rejects Motion to Halt the DOL’s 80/20 Rule for Tipped Employees
At a glance The main takeaway: A recent federal court case out of Texas aimed to block the DOL’s reinstated 80/20 rule for tipped employees, citing costly compliance challenges and an overstepping of authority on the part of the DOL. Impact on your business: The judge in the case denied the motion to halt the rule, meaning…
Read MoreU.S. Tax Planning Opportunities for Bona Fide Residents of Puerto Rico
At a glance: The main takeaway: There are several lucrative tax benefits and incentives available to certain U.S. taxpayers who relocate to Puerto Rico. Impact on taxpayers: Before relocating, it’s important for taxpayers to ensure and document that all U.S. and Puerto Rican requirements are met in preparation of any audit. Next steps: Consult with international tax specialists…
Read MorePartnerships and S Corporations: What to Expect from Schedules K-2 and K-3
At a glance The main takeaway: Many partnerships and S corporations are required to submit a Schedule K-2 and K-3 when filing Forms 1065, 1120-S and 8865 beginning with the 2021 tax year. Impact on your business: In a two-part series, we will discuss new tax forms you may be required to complete and what they mean…
Read MoreGeorgia Election to Pay Tax at the Pass-Through Entity Level
At a glance The main takeaway: Effective beginning the 2022 tax year, Georgia has joined many other states in allowing pass-through entities (PTEs), namely S corporations, partnerships and LLCs taxed as partnerships, to pay Georgia state income tax at the entity level. This legislation is intended to lessen the impact on individuals of the deduction limitation…
Read MoreDigital Asset Staking: Your Top Tax Questions, Answered
At a glance The main takeaway: A U.S. District Court case out of Tennessee calls into question the taxability of staking rewards — specifically, whether those rewards generate taxable income. Impact on your business: Taxpayers who engage in staking, mining or similar activities currently operate in a tax “limbo,” but that may change with the development of…
Read MoreThe Pulse on the Economy and Capital Markets: Jan 17 – Jan 21, 2022
At a glance: The markets had another rough week as stocks declined 4% globally, and investors favor lower-risk assets. Investors continue to worry about inflation and how quickly the Fed will respond. The video game industry takes a giant leap towards the Metaverse as Take Two Interactive and Microsoft announce huge merger and acquisition deals.…
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