Find out how to calculate days spent in the United States and days spent abroad to determine qualification for the foreign earned income exclusion. By Allen Schulman March 8, 2018 Generally, U.S. citizens and resident aliens are taxed on their worldwide income. However, under Sec. 911, Citizens or Residents of the United States Living Abroad,… Read More

In general, any amount that is converted (or rolled over) from an eligible retirement plan to a Roth IRA is includible in gross income as a distribution for the tax year in which the amount is distributed or transferred from the eligible retirement plan. 5 See §24,450 for the rules on taxation of distributions. In… Read More

Taxpayers can make qualified rollover contributions to a Roth IRA ( ¶2171) from another Roth IRA, a traditional IRA ( ¶2155), and from certain qualified retirement plans ( Code Sec. 408A(c)(6) and (e)). 175 However, unlike rollovers to traditional IRAs ( ¶2145), qualified rollovers to Roth IRAs may result in the rollover being included in… Read More

To be treated as an S corporation, a corporation must elect S corporation status by filing Form 2553, Election by a Small Business Corporation. Reg. §1.1362-6(a)(2)(i). Compliance Note Form 2553 may also be used to file shareholder consents ( Reg. §1.1362-6(b)(3)(i)) and to select a tax year. Reg. §1.1378-1(e). It is clear that Form 2553… Read More

The deductibility of miscellaneous itemized deductions is temporarily repealed for tax years 2018 through 2025. Background Certain itemized deductions of an individual are treated as miscellaneous itemized deductions and are only allowed to the extent that their total exceeds two percent of the individual’s adjusted gross income (AGI) (Code Sec. 67(a); Temp. Reg. §1.67-1T). The… Read More

Traditionally, tax law provides numerous incentives for home ownership by allowing the deduction for mortgage interest and real estate tax. The Tax Cuts and Jobs Act modifies these popular tax benefits. Mortgage Interest Home mortgage interest is generally deductible if it is paid or accrued on acquisition indebtedness or home equity indebtedness secured by any… Read More

Reg. § 1.368-2 does not reflect P.L. 94-455, P.L. 96-589, P.L. 97-248, P.L. 98-369, P.L. 99-514 or P.L. 100-647. (b)(1)(i)Definitions.— For purposes of this paragraph (b)(1), the following terms shall have the following meanings: (A)Disregarded entity.— A disregarded entity is a business entity (as defined in § 301.7701-2(a) of this chapter) that is disregarded as… Read More

Re: 2017 Tax Cuts Act: What it Means For Businesses The Tax Cuts and Jobs Act was signed by President Trump on December 22. The Act makes sweeping changes to the U.S. tax code and impacts virtually every taxpayer. For businesses, tax benefits include a reduction in the corporate tax rate, increase in the bonus… Read More

The tax reform bill that Congress voted to approve Dec. 20 contains numerous changes that will affect businesses large and small. H.R. 1, known as the Tax Cuts and Jobs Act, would make sweeping modifications to the Internal Revenue Code, including a much lower corporate tax rate, changes to credits and deductions, and a move… Read More

WASHINGTON— The Internal Revenue Service reminds taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) to submit their renewal applications as soon as possible. Failing to renew them by the end of the year will cause refund and processing delays in 2018. The IRS mailed letters over the summer to more than 1 million taxpayers whose… Read More