Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Is Your Trip a Deductible Business Expense?
Is Your Trip a Deductible Business Expense? To help you understand business travel, consider this: You planned a personal trip to Los Angeles, arriving on Friday afternoon and leaving on Sunday afternoon. About a week later, you learn that a vendor you need to meet with is going to be in L.A. when you are. You arrange a dinner on [...]
New Audit Procedure for Partnership
New Audit Procedure For Partnership Congress changed the IRS procedures for auditing partnerships, and they apply beginning with your 2018 partnership tax return. Under the new rules, an audit can lead to a partnership-level tax at a 37 percent rate. Old versus New: Big Picture Under the old procedures, if the IRS adjusted your partnership return, you then amended your [...]
Tax Requirements For Working Abroad
Tax Requirements For Working Abroad Here are three quick things to know about working abroad. Section 199A: To qualify for the Section 199A deduction, your business income must be effectively connected with the conduct of a trade or business within the United States. The preamble to the proposed Section 199A regulations clarified that in almost all circumstances this means the [...]
Check Your Beneficiary Designations Now, Before Disaster Strikes.
Check Your Beneficiary Designations Now, Before Disaster Strikes. With the current super-generous federal estate tax exemption of $11.4 million, estate planning may be completely off your radar. After all, with that huge exemption, you may think there’s no way your estate would owe any federal estate tax if you happen to die—expectedly or unexpectedly. Is your thinking right? You [...]
IRS Limiting Residential Solar Credit
Here’s an important point to know about the solar credit. The 30 percent residential solar credit drops to 26 percent for tax year 2020, drops to 22 percent for tax year 2021, and terminates in 2022. Also, unlike the 30 percent commercial solar credit, where you can qualify for the 30 percent tax credit when you commence construction (as defined [...]
Rules to know When Renting a Room of Your Personal Home
Rules to know When Renting a Room of Your Personal Home You must consider the vacation home rules when you rent a bedroom in your home and also use it personally, or rent your beach home (or any other home you own) and also use it personally. Personal Use of the Dwelling Rent or use by relatives. Personal use includes [...]