Brace for Impact: Changes to R&D Deductions Begin This Year

At a glance The main takeaway: New requirements eliminating the ability to immediately deduct research and development (R&D) expenditures went into effect this year after every attempt to reverse the change failed. Impact on your business: Businesses that have historically benefitted from the favorable tax treatment of fully deducting research expenditures as incurred could be…

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U.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…

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Digital 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…

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New Guidance from the IRS Makes Claiming R&D Credits More Complex

At a glance The main takeaway: Taxpayers wishing to claim research and development (R&D) credits for expenditures made in previous years are now required to provide very specific, detailed supporting documentation to retroactively claim those credits on amended tax returns. Impact on your business: While the new guidance aims to create more efficient tax administration, taxpayers who…

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The Good News About Build Back Better Act (BBBA) Not Moving Forward

The Full Story The BBBA eliminates a permitted exclusion in the Net Investment Income tax provisions by subjecting all trade or business income of individuals with earnings over $400,000 (individual) or $500,000 (married couples) to the 3.8% net investment income tax—except to the extent already subject to self-employment tax. This is an unfavorable change for…

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1031 Exchanges –Navigating Related Party Exchanges

At a glance: The main takeaway: With careful tax planning, 1031 exchanges offer taxpayers an opportunity for big savings on income taxes. Know the risks: Few good things ever come easy, and 1031 exchanges are no different. One of the biggest risks is structuring a transaction with a related party. Next Steps: Taxpayers can often mitigate the risks…

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The DOL Delivers Final Ruling on Reinstated 80/20 Rule

At a glance The main takeaway: The Department of Labor reinstated the 80/20 Rule on “dual jobs” as well as introduced the 30-minute rule, which is set to impact business owners who employ tipped employees. Impact on your business: While tip-generating work is done for specific customers, employers will need to determine a method to track a…

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Catch Them if You Can: Fraud in the Film Industry

At a glance: The main takeaway: The film industry creates an environment that is uniquely vulnerable to fraud – especially tax-related fraud schemes like tax evasion and payroll fraud. Be aware: Know the signs of fraud in the film industry so you can protect yourself. Knowing what to look for means you can implement controls that stop…

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