The CBD Blog

Find peer advice, partner insights, and industry updates – all here in the CBD blog, ‘At The Helm’! With contributions from our entire team, we blog about the things that interest you.

IRS Issues Final QBI Deduction Regulations

Owners of eligible pass-through businesses can now deduct up to 20% of qualified business income (QBI). This tax break is only allowed for individuals, estates and trusts. Here’s a summary of new final regulations that address rental activities, the impact of net capital gains, carryovers of negative QBI amounts, and how to calculate various components of the QBI deduction and its limitations.

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Making Smart Mergers and Acquisitions under Today’s Tax Law

The M&A market is currently hot in some industries. However, before your business combines with another, it’s important to understand the federal tax issues that may apply to your transaction. Although it’s not the only consideration, minimizing taxes is key to a deal’s success. Here are some tax-savvy strategies to consider in structuring a deal under the Tax Cuts and Jobs Act.

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OSHA Log Posting Tips

If you’re in business and have at least 10 employees, you’re probably familiar with the injury and illness reports required by the Occupational Safety and Health Administration (OSHA). Not only do these forms involve detailed reporting and record maintenance, but for three months each year they must also be posted for employees to see. Keep reading for a reminder of your responsibilities and for some tips to help avoid common reporting errors.

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IRS Offers QBI Deduction Safe-Harbor Rule for Rental Real Estate

The IRS recently issued guidance to help real estate investors understand the new deduction for qualified business income (QBI). This break may be available to eligible noncorporate owners of so-called “pass-through” business entities for tax years beginning in 2018 and extending through 2025. Here’s how the new guidance helps clarify the rules for rental property owners.

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How to Combine Home Sale Gain Exclusion with a Like-Kind Exchange

Homeowners, beware: You may be hit with a large federal tax bill when you sell your principal residence if your property is in an area where market values have skyrocketed over the years. Fortunately, two breaks might reduce the tax hit: 1) the home sale gain exclusion, and 2) tax-deferred like-kind exchanges. Here’s a strategy that could potentially save you and your family significant tax dollars.

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Warning: E-Scooters May Pose Risks to Your Business and Its Employees

If you live or work in a city, you’ve probably seen electric scooters quietly gliding around in recent months. Unfortunately, this new technology-driven mode of transportation can pose risks to unwary employers. Here are some issues related to using so-called “e-scooters” for business purposes, along with a way to safeguard your business and its employees from the negative side effects.

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Could Medicare Premiums Lower Your Taxes?

Medicare health insurance options can be confusing, and the premiums can be more expensive than you might think. This article explains how Medicare coverage works and how some people may be able to lower their tax bills by deducting Medicare health insurance premiums and other qualifying medical expenses.

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2018 Income Tax Withholdings: Too Much, Too Little or Just Right?

Many individuals still aren’t familiar with all the changes under the Tax Cuts and Jobs Act. So, they don’t know whether their 2018 withholding and estimated quarterly payments will be sufficient. Here’s an overview of the provisions that might affect your tax situation, along with recent queries to the IRS about possible penalty relief for those who didn’t pay enough to the IRS for the 2018 tax year.

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Should You Switch Your Business to C Corporation Status?

Based on prior tax law, many businesses chose to operate as sole proprietorships and pass-through entities, including partnerships, LLCs and S corporations, to help lower their taxes. Now some business owners are rethinking their business structures under the current tax law. But before you switch, it’s important to learn about the potential pitfalls of operating as a C corporation.

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Important Tax Figures for 2019

Every year, the dollar amounts allowed for various federal tax benefits are subject to change based on inflation adjustments and legislation. Here are some important tax figures for 2019, compared with 2018, including the estate tax exemption, Social Security wage base, qualified retirement plan and IRA contribution limits, driving deductions, allowable business write-off amounts and more.

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Balance Your Right to Monitor Communications with Employees’ Privacy Rights

Employers try to respect their employees’ privacy rights but they also don’t want to be taken advantage of or risk losing sensitive data. That’s why a growing number of companies are implementing policies to monitor employees’ communications at work, including their emails and Internet activity on company-owned computers. Here are some ideas to help you implement a policy that’s fair but effective.

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Dealing with Child Support Withholding Orders

If you handle payroll or human resources long enough, chances are you’ll encounter an income withholding order for delinquent child support. Perhaps you’re already familiar with the process. If not, you’ll need some guidance on how to address the issue and what your reporting requirements are. Here’s a quick briefing.

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Revenue Recognition: Private Companies Prepare for New Rules

At this time of year, many companies are concerned about tax-saving strategies. But there’s more to consider this year end. New accounting rules for recognizing revenue go into effect in 2019 for private companies. Be aware, however, that updating your systems and personnel will likely take more time and effort than you expect.

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DOL Pitches Auto-Portability Program to Preserve Retirement Savings

The U.S. Department of Labor (DOL) is seeking comments on a proposed “auto-portability” program. Under the proposal, an employee’s 401(k) savings would be moved to an IRA if employment (or the plan) is terminated. Those funds would then automatically transfer to a new employer’s 401(k) plan when the employee finds a new job. Here are the details.

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Overview of Real Estate Depreciation Changes

Real estate investors have reason to celebrate in the upcoming tax season: The Tax Cuts and Jobs Act significantly expanded the first-year tax breaks for bonus depreciation and Section 179 deductions. But Congress may need to fix one intended change before it can benefit investors. And there are some pitfalls to consider before taking advantage of first-year depreciation breaks for real estate.

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Estate Tax Planning Tips for Single People

Estate planning tips are often geared toward married couples. Although many of the same principles apply to single people, singles may need to give their estate plans extra attention to maximize how much they can transfer to loved ones tax-free during their lifetimes and beyond. The Tax Cuts and Jobs Act expands those opportunities through 2025.

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Disability Discrimination Claims May Be Teachable Moments

There’s a law that’s far from new. The Americans with Disabilities Act (ADA) has been on the books for decades, since 1990. Yet the primary federal agency that enforces the ADA never seems to run out of alleged violations of this law to pursue. A pair of recent cases illuminate key features of the ADA that may benefit employers that have grown a little foggy on just what it requires.

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