The IRS has been grappling with virtual currency issues for years, and continues to do so. They have begun sending out “educational” letters to taxpayers they have identified as possibly having had virtual currency transactions in the past year. If you receive one of these letters, and want assistance complying, please contact our office.
The IRS has just issued new mileage rates for 2019, and it’s good news! Our new mileage rates are 58 cents per mile for business uses, 20 cents per mile for medical uses, and 14 cents per mile for charitable uses.
Ways and Means Committee Chairman Brady released a year-end tax bill on November 26 that would extend temporary tax provisions that expired last year or are set to lapse at the end of this year, and make some technical corrections to some provisions in the tax legislation that was signed into law in late 2017. A frequently discussed error that this bill might correct was the accidental exclusion of “qualified …Read More
The Supreme Court ruled today that states can compel retailers to collect sales taxes even if they don’t have a physical presence in the state. This will have consumers paying more for the online purchases from retailers that currently do not collect sales taxes. This is a major change. We’ll see how Kentucky handles this; some states have a sales threshold amount that is reached before they will subject a …Read More
“It’s not over until it’s over?” – Comments by Paul Ryan last week indicate that Congress will probably delay fixing the glitches in the December 2017 Tax Act until much later in the year. They have identified a number of ambiguities in the law, and have asked the business community for input. There is also a proposal by Senate Democrats to roll back certain portions of the law, but that …Read More
There is a common misconception that there is a limit. There is no dollar limit on the amount that one person is allowed to give to another. Gift tax rules do not prohibit a donor from making gifts in excess of the annual exclusion ($15,000 for 2018). However, if more than the annual exclusion is given to any one recipient, there is a form that must be sent into the …Read More
The new Tax Act suspends the deduction for interest on home equity loans. Starting for 2018, a taxpayer may not claim a deduction for interest on home equity indebtedness. The suspension ends for tax years beginning after December 31, 2025.