2022 Year-End Tax Planning
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
2022 Year-End Tax Planning for Individuals   As the end of 2022 approaches, we recommend you now consider tax planning options that can minimize your individual income tax liabilities in both the current and future years. Although we will discuss these items on a seemingly standalone basis, you should discuss these approaches with your tax advisor in order to craft an optimal comprehensive long-range tax-savings strategy and plan.   Managing the Timing of Income If you expect to find yourself in a higher tax bracket next year you may want to accelerate income into 2022. Symmetrically ..read more
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Recent Legislation Implications
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
Income Tax Accounting Implications of Recently Enacted Legislation   In August, President Biden signed into law two significant items of legislation, the Inflation Reduction Act (IRA) and the CHIPS and Science Act. The IRA included provisions allowing Medicare to negotiate prescription drug prices, an extension of enhanced Affordable Care Act subsidies, an increase in IRS enforcement resources as well as a new 15% corporate alternative minimum tax (AMT), a 1% excise tax on corporate stock buybacks, and climate and energy provisions, including tax credits. The CHIPS and Science Act provide ..read more
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Latest Tax News and Developments
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
Legislative Updates   Recently Proposed U.S. Congressional Legislation   HR 8984: Proposed September 26, 2022. The measure would provide a federal income tax deduction for certain charity care furnished by physicians. S 4939: Proposed September 22, 2022. This measure would prevent clean vehicle manufacturers from receiving certain tax credits or grants created under the Inflation Reduction Act. The bill would not allow taxpayers to receive credits or grants if they have received certain other loans, loan guarantees, or grants from the federal government. S 4938: Proposed September 22 ..read more
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IRS Focus On Partnership Distribution
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
New IRS Compliance Campaign to Focus on Gain Recognition Rules on Partnership Distributions   In August, the Internal Revenue Service (IRS) announced a compliance campaign reminding partners of the requirement that “adequate outside basis” must exist to avoid gain recognition on the receipt of liquidating or non-liquidating distributions from their partnerships. This article will discuss the specific rules on gain recognition attributable to partnership distributions and provide examples of the rules in action.   Federal Tax Rules on Gain Recognition on Partnership Distributions The ..read more
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New Ruling – Surcharge Rate Calculations
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
New Private Letter Ruling from IRS Addresses Normalization Rules When Surcharge Rate Calculations Involve NOLs   Introduction On July 8, 2022, the Internal Revenue Service (IRS) released Private Letter Ruling (PLR) 202227002 (“July 2022 PLR Ruling”) modifying an earlier ruling that addressed the treatment of surcharges and net operating losses (NOLs) under the “normalization rules” applicable to public utilities.   Overview In general, a regulated public utility can charge its customers rates that allow it to recover its on-going expenses plus a rate of return on its net capital inve ..read more
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Legislative Updates
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
Latest Tax News and Developments   Legislative Updates Recently Proposed U.S. Congressional Legislation HR 8717:  Proposed on August 16, 2022. The measure would exclude Social Security benefits from gross income. In order to pay for the proposal, the legislation also implements an extension of the payroll tax wage cap to over $250,000 per year (current law exempts wages over $147,000 from the Social Security payroll tax). HR 8675: Proposed on August 5, 2022. This measure would create an employer tax credit for increasing employee wages. The credit would equal 10% of the excess of the ..read more
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Reconciliation Bill Tax Changes
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
Imminent Tax Changes Stemming from Reconciliation Bill   After over a year of discussion, debate, and various iterations, Democrats in Congress have settled on a reconciliation package including corporate tax changes, enhanced Internal Revenue Service (IRS) funding, Medicare prescription drug negotiation, expanded Affordable Care Act premium subsidies, and various climate and energy provisions. This article will focus on the provisions in the bill affecting the U.S. federal income tax rules.   15% Corporate Minimum Tax The legislation creates a new corporate alternative minimum tax ..read more
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Latest Tax News and Developments
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
Legislative Updates Updates on Pending U.S. Congressional Legislation Reconciliation Bill:  On July 27, the White House, Senate Majority Leader Chuck Schumer (D-NY), and Sen. Joe Manchin (D-WV) announced a deal including climate, energy, health, and tax provisions. The tax aspects of the proposed legislation include a 15% corporate minimum tax on book income, significant modifications to the carried interest rules, and an $80 billion boost to Internal Revenue Service (IRS) funding to increase tax enforcement. Other provisions in the bill include Medicare-prescription drug negotiation, the ..read more
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Proposed Taxable Estate Deduction Changes
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
New IRS Proposed Rules to Impact Deductibility of Certain Items from the Value of a Taxable Estate   Overview On June 28, 2022, the Internal Revenue Service (IRS) published proposed regulations in the Federal Register (REG-130975-08) affecting the deductibility of certain items for purposes of the estate tax, including funeral expenses, administration expenses, and claims against the estate, when determining the value of the taxable estate. The newly proposed rules: Provide guidance on the proper use of present-value principles in determining the amount deductible by an estate for funera ..read more
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Personal Goodwill Lowers Taxes?
Kurtz & Company, P.C. CPA
by Daniel Quintana
1y ago
Personal Goodwill: How Your Unique Skills and Connections Can Lower Your Tax Bill?   On many occasions a taxpayer purchases a business for an amount greater than the fair market value (FMV) of the business’s identifiable assets. The buyer must capitalize and amortize the excess purchase price over 15 years as “goodwill.” Typically, one attributes goodwill to the acquisition of an existing customer base, the skill and expertise of the company’s employees, and other abstract benefits intrinsic to a profitable and on-going business. If a particular owner or executive of an acquired corporati ..read more
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