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Answering all your questions about TAX REFORM
Poast new message in this thread
Date: December 23rd, 2017 1:13 PM Author: pale boyish genital piercing toaster I'm stuck working this afternoon, mostly on tax reform related stuff (my clients have questions). Fire away.
Obviously not legal advice! |
Date: December 23rd, 2017 1:15 PM Author: soul-stirring territorial theater coldplay fan What does immediate expensing mean? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992026) |
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Date: December 23rd, 2017 1:20 PM Author: pale boyish genital piercing toaster It means that a corporation can deduct the cost of a capital asset right away. Here's a simplified example: say a corporation buys a forklift for $10,000, and the forklift has a five year life for tax purposes (this is arbitrary; different types of assets will have different lives for appreciation). Under current law, the corporation can't deduct $10,000 the year it buys the asset; it has to deduct a portion of the cost each year over the life of the asset, say $2,000/year per five years. In fact, under current law the corporation gets to deduct more up front and less in the later years, but that's a whole 'nother concept.
Immediate expensing means that the corporation can deduct all $10,000 in year one, reducing its taxes more for an earlier year. The real benefit here is the time value of money - it's always better to pay less taxes and earlier years and more in later years if you can. Moreover, with immediate expensing corporations can do a lot to zero out their tax liability by buying assets. If they don't need them later, they can try to sell them later (though this will be taxable, again it's all about TVM). |
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Date: December 23rd, 2017 1:23 PM Author: soul-stirring territorial theater coldplay fan Does this make sense long term or is it a stimulus measure? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992072) |
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Date: December 23rd, 2017 1:35 PM Author: pale boyish genital piercing toaster Long-term, no. If the economy were bad it is a good stimulus though because it encourages businesses to purchase depreciable assets, which in turn means revenue for the companies that make those assets. However, the economy is great right now, so I think it's unnecessary. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992124) |
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Date: December 23rd, 2017 1:15 PM Author: Crimson mildly autistic therapy did they do anything to modify write-offs for the following:
1) depletion allowance 2) intangible drilling costs |
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Date: December 23rd, 2017 1:21 PM Author: pale boyish genital piercing toaster My understanding is not directly (though not my area). However, I believe these are preference items for the corporate AMT (meaning, you don't get to deduct them for the corporate AMT), and the corporate AMT is now gone. So, I believe these remain a valuable deduction. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992060) |
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Date: December 23rd, 2017 1:22 PM Author: Crimson mildly autistic therapy 18000000 (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992065) |
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Date: December 23rd, 2017 1:16 PM Author: Iridescent Racy Really Tough Guy did they change the FIFO rule for calculating cap gains? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992037) |
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Date: December 23rd, 2017 1:25 PM Author: pale boyish genital piercing toaster This was proposed in the Senate bill, but didn't make it into the final bill. You still get to choose which stock you sell for purposes of calculating your gain, rather than having to sell the oldest ones first. Because the market generally goes up in the very long-term, the oldest shares tend to have the largest built in gain.
Thank the lobbyists at the American Retirement Association and Senator Marco Rubio for this change (EDIT: I mean for having the FIFO rule NOT be in the final law). |
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Date: December 23rd, 2017 2:06 PM Author: Iridescent Racy Really Tough Guy oh I thought FIFO was always the rule. I didn't know we had a choice (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992311) |
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Date: December 23rd, 2017 2:22 PM Author: pale boyish genital piercing toaster You do. Most brokerages will automatically optimize it to make the sale trigger as little gain as possible but also make sure the gain is long-term, though you can turn this off if you want to recognize more gains in a certain year (because, for instance, you have losses from somewhere else you need to offset). (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992406) |
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Date: December 23rd, 2017 3:30 PM Author: kink-friendly razzle-dazzle associate spot Literally had no idea of this fma (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992907) |
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Date: December 23rd, 2017 3:44 PM Author: pale boyish genital piercing toaster Sorry brother at least you know now. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992998) |
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Date: December 23rd, 2017 1:23 PM Author: supple drab reading party You think that the reasonable compensation limitation applies to partnerships for the pass through deduction? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992071) |
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Date: December 23rd, 2017 1:26 PM Author: pale boyish genital piercing toaster Yes, if the partners are performing services for the partnership. However, this is far from clear. I've looked at this a lot and I think that limitation as well as the guaranteed payment limitation applies. Again, not clear. Regulations should clarify. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992085) |
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Date: December 23rd, 2017 1:28 PM Author: supple drab reading party So you don’t think equity partners below the income threshold have a clear benefit here? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992094) |
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Date: December 23rd, 2017 1:34 PM Author: pale boyish genital piercing toaster I think they have to divide their comp between reasonable compensation and risk on the venture. Partners have a capital contribution and may lose it + not get paid a salary if the firm doesn't do well. So not everything they do is reasonable compensation.
If section 199A(c)(4)(A) (the provision at issue relating to reasonable comp.) were not intended to include partnerships, I think Congress would have said so. |
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Date: December 23rd, 2017 1:35 PM Author: supple drab reading party Are K-1s going to have to break this down? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992120) |
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Date: December 23rd, 2017 1:37 PM Author: pale boyish genital piercing toaster No indication on that question in the law itself. That's for Treasury/IRS to decide. I would think the answer is "yes", or else Treasury just says the reasonable comp rule doesn't apply to partnerships. I believe K-1s already break down section 707(c) guaranteed payments and section 707(a) services payments (both of which are excluded from the deduction under new section 199A). (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992132) |
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Date: December 23rd, 2017 1:40 PM Author: supple drab reading party What is an example of a 707(a) payment? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992146) |
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Date: December 23rd, 2017 1:44 PM Author: pale boyish genital piercing toaster I own a partnership with some other xo bros to make quality poasts, I have a contract with the partnership that pays me $10 week for making poasts on behalf of the partnership. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992161) |
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Date: December 23rd, 2017 1:38 PM Author: supple drab reading party Have you seen any good discussion about this issue? I can’t find much. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992139) |
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Date: December 23rd, 2017 1:42 PM Author: pale boyish genital piercing toaster Not as of a week or so ago. I had to look into it for a client. I think that everyone is just gonna wait for regs. There's a big school of thought that services rendered to the partnership (section 199A(c)(4)(C)) and reasonable comp (section 199A(c)(4)(A)) will be coextensive. No one really knows though. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992152) |
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Date: December 23rd, 2017 1:48 PM Author: supple drab reading party Thank you. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992183) |
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Date: December 23rd, 2017 2:04 PM Author: pale boyish genital piercing toaster YW BRO. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992297) |
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Date: December 24th, 2017 8:00 AM Author: Carmine Titillating Clown Congress also could have told JCT that they done fucked up on saying reasonable comp was limited to S-corps! (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997307) |
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Date: December 23rd, 2017 1:23 PM Author: Misanthropic balding parlour factory reset button Suppose an anonymous millionaire on an anonymous message board for lawyers gave me a bitcoin for free in 2016 when it was worth $400. Then in 2018 I sold that bitcoin for $20,000. How much in taxes do I owe? What tax form do I even use for this? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992073) |
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Date: December 23rd, 2017 1:30 PM Author: pale boyish genital piercing toaster The IRS's position is that Bitcoin is property, not currency. See Notice 2014-21. Since you received the Bitcoin as a gift, your basis would be whatever the basis was in the hands of the donor (probably what he paid for the bitcoin). See section 1015. If you can't establish what that was, your basis is zero.
Assuming a zero basis, you have gain of $20,000. This should be long-term capital gain, which is subject to reduced rates. I don't prepare returns but I believe this is reported on schedule D of your Form 1040. |
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Date: December 23rd, 2017 1:44 PM Author: Misanthropic balding parlour factory reset button ty (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992163) |
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Date: December 23rd, 2017 1:45 PM Author: Misanthropic balding parlour factory reset button follow-up: how do we treat situations in which bitcoin split into multiple coins? For example, I received 1.0 Bitcoin cash on Tuesday, December 19 for free because every holder of Bitcoin was given a bitcoin cash.
If I sell my Bitcoin cash in 2018, is that a short term or long term gain? |
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Date: December 23rd, 2017 1:49 PM Author: pale boyish genital piercing toaster It depends if it's a split or a dividend of property. If the former, nontaxable and your basis in the old bitcoin would tack. If the latter, it's taxable on receipt as a dividend.
I don't know how the IRS will treat that, but I'm guessing they would say that the receipt of bitcoin cash is taxable. If you sold it and you had a gain, that would be short term capital gain (under what I suspect the IRS would say).
Not a clear issue at all. And crypto is not my specialty! |
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Date: December 23rd, 2017 3:57 PM Author: Hairraiser dead cuck piazza ty for this legal information of a general nature (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34993111) |
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Date: December 23rd, 2017 1:48 PM Author: supple drab reading party Are you stressed out or excited about this? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992187) |
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Date: December 23rd, 2017 1:51 PM Author: pale boyish genital piercing toaster I was stressed while it was happening because I was trying to figure out what was in it. THat's mostly done.
It will mean a ton of work for me in 2018, so that's probably a good thing for me personally.
Politically, there's a lot to like in the new legislation, but I thought it cost too much. |
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Date: December 23rd, 2017 1:59 PM Author: thriller macaca 180 thread ty.
Is this a clear benefit for S corps in the $1 million to $3 million profit range? Say 4 equal shareholders that run the company and each make $100k in salary (not included in profits) |
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Date: December 23rd, 2017 2:04 PM Author: pale boyish genital piercing toaster You are welcome brother.
Depends entirely on what line of business they are in. Probably not if a "specified service business." |
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Date: December 23rd, 2017 2:10 PM Author: thriller macaca Not a specified service business. Just sell products. The 20% deduction seems like a pretty big benefit no? Just making sure I'm not missing something. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992331) |
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Date: December 23rd, 2017 4:00 PM Author: pale boyish genital piercing toaster There's a lot of hoops you have to run through including the "wage/capital limitation" (which caps the deduction based on the amount of wages that the S-Corp pays).
But yes, it's a pretty big benefit. To be fair, C-corporations are getting a big benefit too. |
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Date: December 23rd, 2017 2:12 PM Author: vibrant outnumbered preventive strike indian lodge very substantive thread without the usual b.s. ty brother.
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Date: December 23rd, 2017 2:13 PM Author: pale boyish genital piercing toaster YW. In spite of everything, I like it here. Can I assist you with a Tax Reform question? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992347) |
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Date: December 23rd, 2017 2:16 PM Author: vibrant outnumbered preventive strike indian lodge (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992368) |
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Date: December 23rd, 2017 2:19 PM Author: pale boyish genital piercing toaster What business is the LLC in? Are you married? Is the LLC wholly owned by you? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992391) |
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Date: December 23rd, 2017 2:21 PM Author: vibrant outnumbered preventive strike indian lodge (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992400) |
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Date: December 23rd, 2017 2:25 PM Author: pale boyish genital piercing toaster It is likely that your business is a specified service business under section 199A and therefore you cannot take any deduction for the pass through income. The result would be different if you grossed less than $415,000 (assuming married).
I say likely because MOST consulting will be a specified service business. Depending on what exactly you do, you may have arguments, but I doubt it.
So, your tax situation in this respect will be similar to now. The good news, at least, is you make enough money to benefit significantly from decrease in marginal rates. |
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Date: December 23rd, 2017 2:29 PM Author: vibrant outnumbered preventive strike indian lodge (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992446) |
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Date: December 23rd, 2017 2:35 PM Author: pale boyish genital piercing toaster Yes, see section 199A(d)(2) which defines "specified service trade or business," both independently and by reference to section 1202(e)(3)(A). I'll spare you the details and say that virtually all consulting-type services appear to be excluded.
The "specified services" limitation doesn't apply if the taxpayer makes less than $315,000 (from ALL sources, not just the LLC). Further, it phases in from $315,000 to $415,000, (essentially from zero to 100% for each $1,000 above $315,000 earned), so if your family's total income is less than $415,000 you'd still get some benefit from section 199A, even though you have a specified services LLC.
Finally, if you're not married, the numbers above are cut in half. |
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Date: December 23rd, 2017 2:39 PM Author: vibrant outnumbered preventive strike indian lodge thanks brother. good stuff. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992495) |
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Date: December 23rd, 2017 2:30 PM Author: vibrant outnumbered preventive strike indian lodge (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992451) |
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Date: December 23rd, 2017 2:46 PM Author: pale boyish genital piercing toaster If you try to put money in a deferred benefit plan to deliberating throw yourself below the income threshold, that could be risky. The IRS might view the situation as a "sham transaction." It would depend a lot on how you did, I would think. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992545) |
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Date: December 23rd, 2017 2:37 PM Author: 180 party of the first part i know crypto is not your specialty, but thoughts on having a taxable event every time you transfer from one coin to another?
also if i keep txn under 20k, chances of auditpwned? (i know this is not legal advice |
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Date: December 23rd, 2017 2:45 PM Author: pale boyish genital piercing toaster Having a taxable event on a transfer between coins is the IRS's view - and the correct result if you consider Bitcoins to be property for federal tax purposes. There is some case law on what constitutes "property," and I think the better view is that Bitcoins are indeed property. In any event, we know where the IRS stands, and it's going to be tough for individual taxpayers to fight the IRS on a position that it's been public about for a few years now.
I can't comment on the chances that the IRS will audit you, but I can tell you that they (1) are making crypto currency reporting an enforcement priority and (2) would likely assert significant penalties against taxpayers who deliberately fail to report cryto gains. That is, if they catch them. |
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Date: December 23rd, 2017 2:55 PM Author: salmon nursing home partner This can’t be good for first time homebuyers. Am I wrong (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992624) |
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Date: December 23rd, 2017 3:01 PM Author: pale boyish genital piercing toaster The limitations on the SALT deduction and on deductibility of mortgage interest ($1,000,000 principal limit to $750,000 principal limit) will in theory hurt first time home buyers who are looking for relatively expensive homes. I say "in theory," because what most economists predict will happen is the price of homes will fall to reflect the limitations on these incentives, which hurts SELLERS not BUYERS.
Similarly, increasing the standard deduction means that the benefit of deducting mortgage interest and property taxes is limited for many taxpayers. Again, most economists say that this will cause the price of homes to fall, which hurts SELLERS not BUYERS.
Of course, current homeowners who are affected by these provisions may be hurt as well. It's case-by-case as to whether the other individual benefits of the law - particularly the lower rates across the board - make up for it. |
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Date: December 23rd, 2017 3:28 PM Author: histrionic laser beams Are existing mortgages grandfathered into the old $1,000,000 rule (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992897) |
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Date: December 23rd, 2017 3:46 PM Author: pale boyish genital piercing toaster Yes. Mortgages taken out before December 16 are grandfathered in. See new section 163(h)(F)(i)(II). (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34993015) |
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Date: December 23rd, 2017 3:23 PM Author: salmon nursing home partner ty brother (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992853) |
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Date: December 23rd, 2017 2:57 PM Author: spruce aggressive point how does this tend to impact people in the 250-500K range who get hit by a higher tax bracket (35%) and less SALT deductions, but also no longer have to worry about AMT?
If you make significantly more than your wife, is it always worth it to file jointly?
Are all small deductions gone? like medical, gambling losses, charitable, etc.? |
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Date: December 23rd, 2017 3:07 PM Author: pale boyish genital piercing toaster Well, the bill President Trump signed doesn't repeal the individual AMT, but you are right that fewer people will pay it because there are fewer "preference items" that would push people into paying the AMT (SALT was always the big one for individuals, and of course that's been limited).
If you are married, then there's no benefit to married filing separately. That's true under current law and true under HR1. The MFS are just one half of the married rates. You'll end up paying the same amount. The "marriage penalty" is the disparity between the single brackets and the married filing jointly brackets. It refers to the fact that two spouses who both work may have been better off each under the separate brackets rather than the MFJ (or MFS) brackets. This depends on both spouse's income, and can be hard to generalize without specific numbers. Note that people at lower incomes typically BENEFITED from getting married.
The new rate brackets get rid of a lot of the marriage penalty.
I have a model that models the impact of the new rates and the marriage penalty, but i'm still tweaking it. I hope to finish before the new year. If I genericize it enough, I will poast a link here. |
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Date: December 23rd, 2017 3:17 PM Author: Mauve stage boltzmann (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992812) |
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Date: December 23rd, 2017 3:22 PM Author: pale boyish genital piercing toaster Depends. What do you do? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992840) |
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Date: December 23rd, 2017 3:25 PM Author: Mauve stage boltzmann (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992868) |
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Date: December 23rd, 2017 3:47 PM Author: pale boyish genital piercing toaster Will be lots of demand. Unfortunately I work at a law firm and we don't have in house CPAs-sorry. However, now is a good time to be looking. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34993027) |
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Date: December 23rd, 2017 3:51 PM Author: Mauve stage boltzmann ty
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Date: December 23rd, 2017 3:20 PM Author: Effete Narrow-minded Weed Whacker Area Thanks for doing this. Solo attorney with a pass through entity here. HHI will probably be in the mid-high $200s.
(1) I pay myself a salary (to meet the S corp requirement). Will the rest of my profit be eligible for the 20% deduction? What is the qualified income concept?
(2) Does the reform impact what I can write off as a business expense? It doesn't change cost of goods sold or other stuff like that, right?
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Date: December 23rd, 2017 3:24 PM Author: pale boyish genital piercing toaster YW.
This should work to get the deduction. Qualified business income can be fees received for services the S corp provides. See section 199A(c)(1) and (3) for the definition. Normally, "specified service trade or businesses" can't produce qualified income, but this doesn't apply to people with total HHI less than $315,000 (I assume you are married). |
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Date: December 23rd, 2017 3:43 PM Author: Effete Narrow-minded Weed Whacker Area 180, thanks. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992989) |
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Date: December 23rd, 2017 3:55 PM Author: pale boyish genital piercing toaster Sorry I didn't see number (2). The answer is generally no, although there might be some small things at the margin. For example, the limitation on deducting fines and penalties was tightened (section 162(f)). (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34993089) |
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Date: December 23rd, 2017 3:32 PM Author: histrionic laser beams 1. Is there now a 3 year holding period to qualify for capital gains as a holder of carrier interest? Does this apply to all profits interests or just those of a fund? How is fund carry distinguished from the carry of a management team of a fund portfolio company? 2. What happened with the rule that distinguishes active from passive activity for an owner of an LLC? When will the owner active owner be entitled to preferable tax treatment if ever? |
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Date: December 23rd, 2017 3:44 PM Author: pale boyish genital piercing toaster 1. Yes. It generally only applies where you get the profits interest in a partnership for investment management type services to said partnership. I'm not sure I understand the last question.
2. If you're referring to the rule that prevents you from deducting passive activity losses, that (I believe) has not changed. There's a bunch of factors in the regulations that will tell you whether you are active or passive. See section 469 and the regulations thereunder. |
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Date: December 24th, 2017 2:29 AM Author: histrionic laser beams Ty (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34996863) |
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Date: December 23rd, 2017 3:37 PM Author: stirring brindle fortuitous meteor lettuce Do you have a view on whether it is overall good or bad for the economy? (impact on investment, compliance costs, etc) (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34992944) |
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Date: December 23rd, 2017 3:50 PM Author: pale boyish genital piercing toaster Lowering the corporate tax rate will be good for the economy in the short term because corporations are going to use the savings either (1) make new investments (labor, expansion, etc.) or (2) return the money to shareholders. Whether you believe (1) or (2) or both will happen may depend on your political affiliation, but either is undoubtedly good for the economy. Lower individual rates should also help the economy continue to grow next year.
In the longer term I think the drag on the deficit may cause knock-on effects that eliminate the benefits. For example, if this results in cut backs to key entitlement programs, a government shutdown, and/or a downgrade in the US credit rating, those things would be bad for the economy.
(EDIT: regarding compliance, I don't think businesses are really going to be expanding their tax groups to figure out planning stuff. They already had big tax groups, which was a necessity with the 35% rate. Big businesses for tax lawyers and accountants, but that will have a negligble effect on the economy as a whole). |
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Date: December 23rd, 2017 3:45 PM Author: Iridescent Racy Really Tough Guy Thank you op for this thread. Merry Christmas! (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34993012) |
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Date: December 23rd, 2017 3:46 PM Author: pale boyish genital piercing toaster You too. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34993018) |
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Date: December 23rd, 2017 4:18 PM Author: bat-shit-crazy transparent double fault chad 1. I’m single and do solo shitlaw. Trying to figure out how the $160K cap on pass through deductions impacts me. Let’s say my net is $180K after business expenses/deductions and my “reasonable salary” is $70K. Can the remaining $110K as dividends qualify for the 20% deduction?
2. Paid $2K in late federal and state tax penalties last year. Can those be deducted next year? |
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Date: December 23rd, 2017 4:31 PM Author: pale boyish genital piercing toaster 1. Potentially, but the value of the deductions starts phasing out when your total income (from any source) is $157,500 (i.e., 1/2 of $315,000). But, still worth doing.
Could you marry someone with no income without having to support them? That might help here.
2. Nope, sorry. Federal tax payments are never deductible. State taxes are deductible, but penalties are not. |
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Date: December 23rd, 2017 4:32 PM Author: pale boyish genital piercing toaster Guys I got to go, we're doing our Xmas even dinner tonight because I'll be at an NFL game tomorrow. I'll check in on this thread later on - thanks for all your questions.
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Date: December 23rd, 2017 6:01 PM Author: dashing sooty background story 1) is the 20% deduction for llcs/s-corps for income up to $315k from that specific business or it is $315k total income? I ask because my husband has like $20k of 1099 income from a side business but our w2 income is over the $315k threshold.
2) engineers and architects are carved out from the professional services definition. Does that include software “engineers”?
3) I am due like a $5k CA state refund in 2017 that I have the option to apply to next year’s taxes instead of taking the refund. I know the new legislation doesn’t allow you to prepay 2018 in 2017 anymore but how about deducting the entire amount of the 2017 withholding and applying the refund to 2018 such that I don’t get a 1099-g from the state in 2018? |
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Date: December 23rd, 2017 7:16 PM Author: pale boyish genital piercing toaster (1) It’s total income not a specific business.
(2) Yes I believe so.
(3) Interesting question. I think this should work so long as your 2017 withholdigns that resulted in the 5k refund were “reasonable”. |
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Date: December 28th, 2017 11:26 AM Author: aromatic range azn lmao never not dropping your income on here (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35025357) |
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Date: December 24th, 2017 12:48 AM Author: alcoholic yarmulke Does the new book-tax income acceleration rule apply to market discount?
Could a RIC pay a spillback for any deemed repatriation income that arises from a >10% portfolio investment, since these rules debuted so late in the year after excise season was over?
Can I still take 179 depreciation through my wife’s sole proprietorship for my new Land Cruiser since it was placed in service in December? |
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Date: December 24th, 2017 8:05 AM Author: pale boyish genital piercing toaster (1) I'm not sure I understand the question. If you have to include income on a financial statement (which is generally the case for MTM stuff?) you have to recognize it for tax purposes - that's the gist of the new rule.
(2) I don't understand the question, what is a "spillback"?
(3) Assuming you could have done this before, the new section 179 rules apply to property placed in service in a tax year beginning after December 31, 2017. |
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Date: December 24th, 2017 10:19 AM Author: alcoholic yarmulke This is just a bunch of glitchy shit with poor drafting and/or in bad need of guidance that has been giving me fits. No one knows the answers to those first two questions yet. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997674) |
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Date: December 24th, 2017 7:27 AM Author: demanding excitant cuckold 180 thread OP. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997265) |
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Date: December 24th, 2017 7:32 AM Author: Odious Step-uncle's House Foreskin excellent thread (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997269) |
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Date: December 24th, 2017 7:38 AM Author: Opaque Temple Masturbator (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997273) |
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Date: December 24th, 2017 8:19 AM Author: kink-friendly razzle-dazzle associate spot 180000 (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997348) |
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Date: December 24th, 2017 7:55 AM Author: coral den Does the 20% pass through deduction begin phasing out at 315k for law partners or is that the cap? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997296) |
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Date: December 24th, 2017 8:01 AM Author: pale boyish genital piercing toaster It begins phasing out at $315,000 total household income (if married) and is fully phased out at $415,000. That is for people who are married, for singles it's half that. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997312) |
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Date: December 24th, 2017 8:28 AM Author: coral den not as bad as being capped at 315k but i probably won't get much benefit from it.
generally speaking, do biglaw bros get fucked under the new tax plan? it seems so. |
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Date: December 24th, 2017 8:30 AM Author: Carmine Titillating Clown if lower-level associates, they probably weren't itemizing or were on the edge of it and so will see their tax go down. above that, probably seeing an increase if they're in a high-tax state. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997372) |
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Date: December 24th, 2017 8:31 AM Author: coral den i am a first year lolpartner. comp should be 315k base this year, wife makes around 90k. we live in the DC metro. i have to imagine we are getting gaped. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997380) |
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Date: December 24th, 2017 8:49 AM Author: Carmine Titillating Clown looks like savings of ~$10k at $405k, currently itemizing for SALT income tax (38k) and $6k in property tax (roughly $600k house in bethesda for example) and assuming no kids
http://taxplancalculator.com/ |
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Date: December 24th, 2017 8:50 AM Author: coral den Trump is making America great again (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997433) |
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Date: December 24th, 2017 8:24 AM Author: chrome hairy legs hell Many 180s to OP for his service to the board. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997363) |
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Date: December 24th, 2017 8:57 AM Author: Cordovan Queen Of The Night People Who Are Hurt What is the tax rate for commissions? What about bonus compensation? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997443) |
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Date: December 24th, 2017 8:59 AM Author: Ruddy plaza 180 (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997445) |
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Date: December 24th, 2017 10:14 AM Author: pale boyish genital piercing toaster Generally taxed as ordinary income (ie whatever your marginal rate is) before and after tax reform. With respect to bonuses, your employer may elect to use special withholding rules to determine how much to withhold, but this doesn’t atfect the ultimate amount of tax paid. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997656) |
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Date: December 24th, 2017 10:19 AM Author: Ruddy plaza He’s mocking low IQ retard Julia (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#34997673) |
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Date: December 24th, 2017 11:48 AM Author: frum corner Subject: Pay 2017 property taxes in 2017 or 2018? Thank you for the post and information. Very helpful.
In light of new tax plan, should I pay 2017 property taxes in 2017 or 2018? Typically, I have been double-paying property taxes because I otherwise would just take the standard deduction (think big law associate type career/salary).
Here is generally my unique situation: -Presently (2017) I am single making approximately $300k -Next year (2018) I will be married with a joint income of approximately $440k -Property taxes are approximately 7k-8k. -I paid my 2016 property taxes in 2016 (I double paid in 2016). Thus, before the tax plan, I was intending to double pay in 2018. -Absent double paying property taxes, I will likely just take the standard deduction.
I understand this is not legal advice. |
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Date: December 25th, 2017 7:07 AM Author: pale boyish genital piercing toaster First of your JX has to allow you to prepay property taxes. I assume that’s the case. Next you should know that it’s not crystal clear that prepaying property taxes and deducting them works, although most will tell you certainly have a return provision.
I assume no state income tax? Would you seven itemize for 2018 if you didn’t prepay? It’s almost always better from a tvm perspective to pay less today and more later. Factor in the fact that you are going to lose some value of the deduction for SALT if you don’t prepay, and it seems like you have little to lose by prepaying and taking the standard deduction in 2018. |
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Date: December 24th, 2017 11:50 AM Author: Citrine bespoke incel Describe in detail how we should calculate gains for crypto
TY in advance |
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Date: December 25th, 2017 7:10 AM Author: pale boyish genital piercing toaster I reference the IRS notice on the subject https://www.irs.gov/newsroom/irs-virtual-currency-guidanc
Basically ball crypto is property and any sale or exchange (including for other crypto) is taxable. You should record for each sale which crypto you sold, your basis (cost of acquiring) such crypto, the sale price or value of other crypto received, and the date of sale. This will let you determine whether you have long-term or short-term capital gain / loss. |
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Date: December 25th, 2017 7:28 AM Author: Canary Sweet Tailpipe 180 but holy fuck there is no way I can do this let alone the IRS figure it out (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35002544) |
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Date: December 25th, 2017 8:38 AM Author: pale boyish genital piercing toaster The IRS will give you a zero basis if you can’t prove otherwise. It will be quite easy for them if they audit you. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35002606) |
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Date: December 28th, 2017 10:37 AM Author: marvelous thirsty lodge How busy are you (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35025044) |
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Date: December 28th, 2017 3:35 PM Author: pale boyish genital piercing toaster I’m actually on vacation atm but having to field a lot of emails. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027452) |
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Date: December 28th, 2017 3:43 PM Author: marvelous thirsty lodge Oh what an important man! (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027536) |
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Date: December 28th, 2017 3:48 PM Author: pale boyish genital piercing toaster I never claimed to be important. Someone asked, so I answered. Currently watching a terrible bowl game. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027582) |
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Date: December 28th, 2017 11:04 AM Author: Claret milk With the repeal of the technical terminations under Section 708(b)(1)(B), can you confirm that this removes the requirement for short-year tax returns when 50%+ of the partnership is transferred?
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Date: December 28th, 2017 3:36 PM Author: pale boyish genital piercing toaster I’ll have to look into that one when I get back. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027455) |
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Date: December 28th, 2017 4:07 PM Author: Claret milk It would be very much appreciated. Thanks. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027736) |
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Date: December 28th, 2017 11:10 AM Author: Dark crackhouse not so much a tax reform question per se (except insofar as like kind exchanges are now to be limited to real property) but if my crypto to crypto trades are not reported by the shitexchanges i use, i can relatively safely not report them because while there is a technical argument that they are realization events, there is also a decent argument that they should not be (not liquid with usd, very hard to value, record keeping impossibility, etc) amirite? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35025259) |
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Date: December 28th, 2017 11:32 AM Author: Carnelian rambunctious striped hyena he addressed this above (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35025426) |
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Date: December 28th, 2017 3:38 PM Author: pale boyish genital piercing toaster I did. I wouldn’t consider playing the audit lottery to be “safe” but it’s up to you. Clear that is the IRS finds out they nail you for willfully breaking the law and maybe refer you for prosecution. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027475) |
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Date: December 28th, 2017 11:12 AM Author: fishy shitlib stage Any implications for the foreign earned income exclusion? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35025274) |
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Date: December 28th, 2017 11:43 AM Author: Carmine Titillating Clown That depends, are you working for the U.S. military on the Sinai Peninsula?
Other than that, no though... |
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Date: December 28th, 2017 11:52 AM Author: fishy shitlib stage no
cool |
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Date: December 28th, 2017 3:38 PM Author: pale boyish genital piercing toaster None that I am aware of but I haven’t been monitoring that particular issue closely. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027482) |
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Date: December 29th, 2017 3:27 AM Author: fishy shitlib stage It's pretty niche... there aren't a lot of American expats in the world, all things considered, and raising the exclusion cap wouldn't prove that popular. The concept of citizenship-based taxation is even further into wonk territory. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35032404) |
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Date: December 28th, 2017 11:31 AM Author: Carnelian rambunctious striped hyena I live in high taxed state and have a large amount of crypto to cash out sometime in the next few years. I'm thinking of moving to a state with no tax because my tax savings will be more than my salary.
Is there a better way to go about this? Should I set up a taxable entity in no tax state or that sketchy? |
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Date: December 28th, 2017 3:33 PM Author: pale boyish genital piercing toaster Not sure about how setting up a taxable entity would help. Moving to a low / no tax state may be a good idea. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027417) |
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Date: December 28th, 2017 3:41 PM Author: Dark crackhouse re what you said above about irs' view of crypto, i fully intend to report any gains i get from crypto trading but only when i convert to fiat. its simply impossible for me to keep scrupulous records of crypto trading for a wide variety of reasons and i feel i have a legitimate good faith argument that crypto-to-crypto transactions should not be realization events. but when i convert crypto back to fiat in the middle of next year i intend to report that as income on my taxes. my concern is that in the middle of 2019 the irs will come and say "no you should have been keeping copious records all this time on your crypto-to-crypto transactions" and at that stage it will be beyond impossible to obtain files or records for all of this. i assume the irs isnt full of fucktarded zealots who will try to make an example out of me in 2019 as long as i pay the taxes eventually right?
I can't comment on the chances that the IRS will audit you, but I can tell you that they (1) are making crypto currency reporting an enforcement priority and (2) would likely assert significant penalties against taxpayers who deliberately fail to report cryto gains. That is, if they catch them. |
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Date: December 28th, 2017 3:46 PM Author: heady frisky marketing idea "i assume the irs isnt full of fucktarded zealots who will try to make an example out of me in 2019 as long as i pay the taxes eventually right"
what's your exit strategy on the off chance it is |
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Date: December 28th, 2017 3:46 PM Author: pale boyish genital piercing toaster The law requires you keep track of your gains and losses from the exchange of cryptocurrency just like any other property. Failure to do so and pay the tax on the gain recognize could subject you to civil and criminal sanction, period.
Edit: The law is crystal clear that tax deferral is the same as tax avoidance. |
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Date: December 28th, 2017 4:35 PM Author: Iridescent Racy Really Tough Guy If i have $30K in ETH gains, use that to buy LTC then convert LTC to fiat at a loss, what/how do i report? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027950) |
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Date: December 28th, 2017 4:40 PM Author: pale boyish genital piercing toaster The ETH to LTC is treated as a taxable event. So is LTC to fiat, but maybe your basis from the first taxable event is high enough that no additional tax is owed. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027993) |
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Date: December 28th, 2017 3:47 PM Author: lascivious tan giraffe how difficult for self employed bros to become pass throughs? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027571) |
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Date: December 28th, 2017 3:49 PM Author: pale boyish genital piercing toaster Self-employed? If they are self-employed they are likely already getting pass through treatment. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027592) |
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Date: December 28th, 2017 4:09 PM Author: brilliant glittery potus address How do I get a job at ur firm (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027755) |
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Date: December 28th, 2017 4:21 PM Author: pale boyish genital piercing toaster Send me your resume would be the first step. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027836) |
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Date: December 28th, 2017 4:22 PM Author: brilliant glittery potus address You serious? You have a throwaway? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027846) |
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Date: December 28th, 2017 4:30 PM Author: pale boyish genital piercing toaster I don’t. I’ll think about making one... while I’m sure a genuine dude or woman I am thinking their may be some risk in announcing my firm to an xo poaster for fear of being outed. Let me think on it. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027916) |
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Date: December 28th, 2017 4:20 PM Author: Cyan police squad any changes to the treatment of Americans living abroad and the how foreign tax gets treated? tyia (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027824) |
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Date: December 28th, 2017 4:24 PM Author: pale boyish genital piercing toaster None that I am aware of no, unless you count lower rates (which affect everyone) or the expat owns a foreign business (in which case there are BIG CHANGES as Rachmiel used to say). (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027857) |
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Date: December 28th, 2017 4:31 PM Author: Ruby tanning salon liquid oxygen when will the withholdings from our wagecuck checks actually change? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027923) |
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Date: December 28th, 2017 4:33 PM Author: pale boyish genital piercing toaster No one knows for sure but the IRS is working to providing guidance here. It could be as early as February. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35027934) |
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Date: December 28th, 2017 4:49 PM Author: cerebral community account voyeur What's the bottom line on AMT? If my wife and I make less than $500k a year, are we no longer shuttled into the bizarro world of AMT calculations? (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35028082) |
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Date: December 28th, 2017 4:53 PM Author: pale boyish genital piercing toaster Depends entirely on your situation. The main thing that forced people like you into the AMT was the SALT deductions (which are not deductible for AMT purposes). The limitation on SALT deductions means that many people who paid the AMT in the past won’t anymore. (http://www.autoadmit.com/thread.php?thread_id=3838615&forum_id=2#35028110) |