By: Amanda Wilson
Last week, President Obama signed into law the Bipartisan Budget Act of 2015. As I mentioned in a prior post (found here), the budget bill contained a proposal to revamp how partnerships are audited. Specifically, TEFRA (the 1982 Tax Equity and Fiscal Responsibility Act) is out. The new partnership audit rules go into effect for partnership returns filed for partnership taxable years beginning after December 31, 2017.
By: Amanda Wilson
The budget bill introduced yesterday includes a proposal to revamp/streamline how partnerships are audited. Specifically, it would repeal the much maligned TEFRA (1982 Tax Equity and Fiscal Responsibility Act) rules.
By: Amanda Wilson
For partnership, individuals and other types of taxpayers that are not in the business of making loans, the main avenue for tax relief when a loan goes bad is Section 166 – the bad debt deduction. In order to claim this deduction, the taxpayer must show that the debt has become wholly worthless during the tax year in which the deduction is claimed. This can often be a very difficult burden for taxpayers, especially if there is no external event that they can identify as a trigger for worthlessness. Even if there is such an event (such as the borrower declaring bankruptcy), worthlessness can be difficult to establish.
By Jason Palmisano
Adding a responsible adult child to mom’s bank account to give the child access to funds to pay bills and expenses for mom as she gets older seems harmless enough, right? After all, mom really needs the help and the account will now avoid probate since the child is a joint owner of the account. And mom did tell her child to divide the funds equally with his siblings after she passes (which, of course, the child assures her will happen).
By: Amanda Wilson
Last Friday, President Obama signed into law a bill that provides temporary funding for the highway trust fund. Buried in the law are several permanent changes to the tax code that are unexpected. Specifically, the deadline for filing tax returns for partnerships and S corporations has been moved up a month, from April 15th to March 15th. The deadline for filing tax returns for corporations has been moved back a month, from March 15th to April 15th. These changes will apply for tax returns due for tax years starting in 2016. Be aware of how these changes could affect your private business.
