QBI Deduction Provides Tax Break to Pass-Through Entity Owners
The IRS has recently issued proposed reliance regulations that help clarify the new qualified business income (QBI) deduction that was introduced as part of the Tax Cuts and Jobs Act. The guidance is involved and goes on for hundreds of pages. The IRS explained that...
Tax Court’s Valuation of Trust’s Interest in LLC Weathers Appeal
Estate of Koons v. Commissioner (Koons II), The 11th Circuit Court of Appeals upheld a 2013 Tax Court ruling involving a revocable trust’s interest in a limited partnership. The valuation turned on the marketability discount. The 11th Circuit opinion shows the Tax...
Camp Counselors Were Incorrectly Classified as Exempt from Overtime
Violating the Fair Labor Standards Act (FLSA) for 461 summer camp employees is going to cost a Miami prep school almost $700,000 according to the U.S. Department of Labor (DOL). (DOL News Release 18-1191-ATL) After an investigation, the school will pay $635,269 to the...
Create an Accountable Plan to Reimburse Employees for Business Expenses
One of the changes in the Tax Cuts and Jobs Act (TCJA) was to eliminate itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025. To minimize the adverse effects of this TCJA, you can set up a so-called “accountable...
Buying vs. Leasing Equipment: Which Is Right for Your Business?
The Tax Cuts and Jobs Act (TCJA) provides new and improved tax incentives for buying new and used business equipment for tax years starting in 2018. Some taxpayers may still see benefits from leasing though. When deciding which way to go, here are some important...
E-Discovery Can Make or Break a Case
Electronically stored information (ESI), whether emails, spreadsheets, text documents, or others, is routinely requested as evidence in lawsuits. Destroying that data, or being unable to produce it during the discovery process, can result in some harsh legal...
How Tax Reform Affects Tax Planning for C Corporations
Of all the changes under the Tax Cuts and Jobs Act (TCJA), one of the biggest is the permanent installation of a flat 21% federal income tax rate for C corporations for tax years beginning after 2017. This new 21% applies equally to personal service corporations...
Inadequate ESOP Valuation Vetting Gets Trustee Into Hot Water
Brundle v. Wilmington Trust N.A. The case involved a short-lived ESOP whose structure was unusual in that the sellers—the principal shareholders in a private security firm—agreed to sell 90% of their shares to the ESOP and exchange the remaining 10% for warrants. The...
Tax Law Expands Accounting Method Options for Small Businesses
The Tax Cuts and Jobs Act (TCJA) included many changes, including that many more businesses can now use the simpler and more flexible cash method of accounting for federal income tax purposes. The TCJA also includes some other tax accounting changes that are good news...
Move to Exclude Damages Expert at Class Certification Stage Fails
In re Stericycle Financial expert testimony is critical to class actions, which are their own breed of lawsuits. What is still an unresolved issue is whether courts must perform a full Daubert inquiry at the class certification stage. A contract case illustrates the...