Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
No Misc. Itemized Deductions Under the New Tax Law
The recent tax reform added new tax code Section 67(g), which states, “No miscellaneous itemized deduction shall be allowed for any taxable year beginning after December 31, 2017, and before January 1, 2026.” Before the recent tax reform, employees were already getting the short end of the stick when it came to business expenses. Why? The alternative minimum tax (AMT) [...]
New Section 179 Tax Deductions for 2018
The new and improved Section 179 deduction gives you more ways to take advantage of immediate tax deductions. It’s somewhat like having a flexible tax shelter in your back pocket for when you need it (and also need the property, of course). As in years past, the Section 179 deduction is available for both new and used assets and offers [...]
Removing & Reducing Your Tax Penalties
As a small-business owner, you have good odds of someday facing a penalty for late filing and/or late payment of your or your corporation’s federal income or payroll taxes. When you receive the penalty notice from the IRS, it’s likely you will think that you have to pay the penalties. That may not be true. We know many of the [...]
Ways to Deduct Legal Fees Under the New Tax Law
The Tax Cuts and Jobs Act (TCJA), known as tax reform, made it more difficult for you to deduct your legal fees. The new tax reform law suspended your legal fees as 2 percent miscellaneous itemized deductions for tax years 2018 through 2025. This means you need to look for other possible ways to deduct legal fees, such as claiming [...]
Changes in Alimony Under the New Tax Law
Tax reform changes the alimony game. This may or may not have any relevance to you, but if it does, you will want to move quickly. The Tax Cuts and Jobs Act (TCJA) eliminates tax deductions for alimony payments that are required under post-2018 divorce agreements. More specifically, the TCJA’s new denial of alimony tax deductions applies to payments required [...]
How to Deduct Gym Expenses
We know that you have been thinking about employee fitness and the possibility of a gym or other athletic facility. To be tax deductible, your gym or other athletic facility must be primarily for the benefit of your employees—other than employees who are officers, shareholders or other owners who own a 10 percent or greater interest in the business, or [...]