IRS issues regulations on inherited property consistent-basis requirements

Eight years after issuing proposed regulations, the IRS has finalized regs on inherited property consistent-basis requirements. The Internal Revenue Code requires consistent-basis reporting between an estate and beneficiaries who acquire property from the estate. If an estate is required to file a federal estate tax return, Section 1014(f) provides that the basis reported by persons […]

Innocent Spouse Relief

Spouses filing joint federal tax returns are generally both liable for the tax owed. But they may be eligible for innocent spouse relief. In one case, a husband was the sole owner of an engineering firm. The IRS audited their joint tax returns after their divorce and found that the couple had tax deficiencies of […]

Online Sports Betting Taxes by State, 2024

Online Sports Betting Taxes by State, 2024 https://bit.ly/3zpIobz

IRS reminds taxpayers that gambling winnings are taxable

The football season has kicked off, and betting on college and NFL games is hotter than ever. Not to spoil the fun, but the IRS Criminal Investigation (IRS-CI) unit reminds taxpayers to gamble legally and report winnings on their tax returns even if they don’t receive a Form W-2G for gambling winnings. IRS-CI Chief Guy […]

Trump Tax proposal

Donald Trump, Republican presidential nominee, is promising workers he’ll eliminate tax on overtime wages if he’s elected. Overtime pay is defined as time-and-a-half paid for the time employees work over 40 hours in a single work week. Trump has also proposed to extend temporary tax cuts included in the Tax Cuts and Jobs Act (TCJA) […]

State Tax Ballot Measures to Watch in 2024 https://bit.ly/3zmTM84

Harris tax proposal

U.S. Democratic presidential nominee Kamala Harris recently announced that if elected, she’ll push for a higher tax deduction for new business costs. Currently, companies can deduct $5,000 in start-up costs, including expenses related to market research, advertising and salaries for employees who are being trained. To help encourage entrepreneurs, Harris says she’ll work to raise […]

Next year the reporting threshold for card payments resets to $600

IRS Form 1099-K, Payment Card and Third Party Network Transactions, is an information return that reports payments from payment apps or online marketplaces (also known as third-party settlement organizations). These include apps such as Paypal, Venmo and eBay. For 2024, the reporting threshold is $5,000. In 2025, the threshold is scheduled to be reduced to […]

Working remotely is convenient, but it may have tax consequences

Many employees began working remotely during the pandemic and continue doing so today. Remote work has many advantages for employers and employees, and as a result, it’s here to stay in many industries. But it may also lead to some tax surprises, especially if workers cross state lines. Double taxation may occur It’s not unusual […]

IRS waives penalties related to CAMT

The Inflation Reduction Act established a corporate alternative minimum tax (CAMT), which imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations. The CAMT generally applies to large corporations with average annual AFSI exceeding $1 billion. Newly proposed regulations from the IRS provide definitions and general rules for determining and […]