Archive: tax deduction

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Donate Food Inventory During Epidemic and Claim Sizeable Charitable Deductions

As the coronavirus (COVID-19) outbreak continues to spread, restaurants are being restricted to carryout and delivery service, while many others are closing their businesses entirely during this period. As a result, much of restaurants’ food inventory may spoil and end up getting trashed. Restaurant owners should strongly consider donating their food inventory to a charitable […]
March 19, 2020

Renovations Placed in Service Provide Tax Deductions for Hospitality Business Owners

As 2019’s tax year begins to wind down, restaurant, hotel, and food distribution owners have the opportunity to take advantage of a variety of tax depreciation incentives. These tax deductions can be substantial if a business owner purchases a high quantity of fixed assets or a major buildout, or if a refurbishment project for their […]
December 13, 2019

Junk Food Good, Nutritious Meals Bad?

The Tax Cuts and Jobs Act (TCJA) made significant changes to a company’s ability to deduct meal and entertainment expenses. Prior to the TCJA, meals provided by an employer to employees on the business premises, when the employer needed employees to remain on-site, were 100% deductible. Effective under the new tax law, such meals are […]
May 10, 2019

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 […]
March 25, 2019

Deductions for Meal and Entertainment Expenses under TCJA

The Internal Revenue Service (IRS) issued a notice clarifying the tax treatment of meal and entertainment expenses associated with operating a business. The meal and entertainment expense deduction changed significantly with the passage of amendment §274 to the Internal Revenue Code made by the Tax Cuts and Jobs Act (TCJA). According to the IRS, the […]
March 13, 2019

Maximizing Tax Benefits from Charitable Contributions after Tax Reform, Part I

The Tax Cuts and Jobs Act of 2017 (TCJA) eliminated or impacted many aspects of individual income tax deductions. Among these was the much-cherished charitable contribution deduction. Fortunately for the philanthropic and their chosen charities, Congress did not eliminate the charitable contribution deduction and even expanded the limitation to 60% of adjusted gross income under […]
December 21, 2018

Proposed Tax Law —What You Need to Consider in Your 2017 Tax Planning

BACKGROUND On November 2nd, the House Ways and Means Committee released H.R. 1, the Tax Cuts and Jobs Act, the opening volley on tax reform for the 115th Congress. The House bill (429 pages) is a Congressional response to a litany of issues that have plagued taxpayers (at least as perceived by the House Ways […]
November 10, 2017

#AskAronson: “How Do I Document Charitable Contributions?”

Different types of charitable contributions require different types of documentation and reporting, depending on whether you contributed cash or property. A cash contribution must be accompanied by either: a receipt from the receiving organization at the point of donation; an acknowledgement letter sent to you by a qualified organization; or a canceled check. The donation […]
April 3, 2015

Basic Tax Tips for Negotiating a Sec 338(h)(10) Transaction

In an acquisition scenario where an S Corporation is the target, it is common for the S Corporation’s shareholders and the qualified acquiring entity (the purchaser must be a corporation and/or members collectively of an affiliated group of corporations acquiring 80% of the underlying stock ownership of the target measured in terms of voting shares […]
August 4, 2013

Rallying cry in the argument against ending the charitable deduction

The Nonprofit Quarterly has been exploring both sides of the issue currently before congress regarding whether or not to cut the charitable deduction. In a post yesterday, they sent out what is essentially a rallying cry for the nonprofit community to join together and raise a collective voice against cutting the charitable tax deduction. The […]
October 26, 2011