Archive: Tax Cuts and Jobs Act

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Key Provisions of the CARES Act and Effects on the Real Estate Industry

On March 27, 2020, President Trump signed into law the CARES Act to provide relief to millions of American taxpayers and businesses impacted by the COVID-19 pandemic. Below are the key provisions of the legislation and its applicability to the commercial real estate industry: Bonus Depreciation on Qualified Improvement Property (QIP): Previously, a drafting error […]

Navigating S Corporation and Partnership Loss Planning Rules and Limitations

Prior to the enactment of the Tax Cuts and Jobs Act (TCJA), the largest tax overhaul in decades, individuals could freely deduct their flow-through business losses from their partnerships and S corporations against their wages and other investment income, subject to basis, at risk and passive activity limitations. As a result, a taxpayer with sufficient […]

The Deductibility of an Estate’s Excess Deductions to Beneficiaries

As we planned for and now prepare estate and trusts returns for 2018, beneficiaries and executors want to know: After the Tax Cuts and Jobs Act (TCJA), can a beneficiary still deduct excess estate tax deductions on his/her individual return? Background Prior to the 2017 Tax Cuts and Jobs Act, individual taxpayers could deduct a […]

Notice 2019-07: Section 199A Safe Harbor & Rental Real Estate Enterprises

Prior to Notice 2019-07, many taxpayers were uncertain as to whether all rental real estate activities were encapsulated by the language of the recently-enacted section 199A of the Tax Cuts and Jobs Act (TCJA). The Treasury Department issued a revenue procedure on Friday, January 18, 2019, which outlines safe harbor rules, in hopes of bringing […]

State Legislatures Tackling TCJA Conformity or Nonconformity

States have had a year to consider the impact of the Tax Cuts and Job Act of 2018 (TCJA), and now many state legislatures are making decisions regarding which provisions they want to follow. This is certainly the case in our region. Both Maryland and Virginia have proposed legislation addressing conformity with federal tax reform, […]

Underpayment Penalty Relief for Nonprofits Subject to New Qualified Transportation Fringe Tax

Internal Revenue Service (IRS) Notice 2018-100 offers transitional relief to nonprofits from underpayment penalties related to the new qualified transportation tax. The new tax is applicable to nonprofits that provide certain benefits to employees, effective on January 1, 2018. The general tax rules provide that taxpayers must make four quarterly estimated payments during the year […]

Let Uncle Sam Help You Expand Your Real Estate Portfolio by Utilizing the 1031 Like-Kind Exchange

There are many tax-deferral strategies used by successful investors. One of those tax instruments is the code Section 1031 Like-Kind Exchange. Businesses are able to exchange assets used in a trade or business and defer paying taxes on gains from the sale of real property. Previously, businesses were able were able to exchange personal property […]

Will IRS “Claw Back” the Temporarily Increased Gift Tax Exemption?

The 2017 Tax Cuts and Jobs Act (Tax Act) increased the estate and gift tax exemption from $5M to $10M, as indexed for inflation after 2011. For 2018 the inflation adjusted exemption is $11.18M. The exemption is to revert to $5M (as indexed for inflation) after eight years, in 2026. Assume the following “Clawback” scenario: […]

New Excise Tax on Nonprofits

Tax Code Section 4960, added by the 2017 Tax Cuts and Jobs Act (TCJA), is generally effective for tax years beginning after December 31, 2017. It imposes an excise tax on all tax-exempt organizations, including political organizations that pay excess compensation. What were they thinking? Before TCJA, as now under existing tax law, no deduction […]

IRS Issues Notice Clarifying Trade or Businesses for UBI Purposes

The Internal Revenue Service (IRS) issued Notice 2018-67 on August 21, 2018, to an audience of nonprofit organizations and their advisors waiting on the edge of their seats for clarification of the new law passed last December. The agency revealed relatively good news for those nonprofits who have more than one source of unrelated business […]
September 19, 2018