Christine Hradsky No Comments

Vacation Homes Classified as Rentals See Little Impact from Tax Reform

Vacation home taxes

Vacation home taxes become complicated when the property is used for both personal and rental purposes.

There’s good news if you own a vacation home that you rent out: The Tax Cuts and Jobs Act (TCJA) didn’t have much effect on how your rental income and related expenses are treated under the tax rules. But those rules are still complicated. Here’s what you should know.  Read more

Christine Hradsky No Comments

So You Think You Want to Expatriate…

Expatriate

Anyone thinking about expatriating needs to be aware of the associated tax and legal responsibilities.

By Bethany Bouw, CPA

We see much in the news about people expatriating – jokes related to a political climate (regardless of administration), trying to avoid tax (think that Facebook co-founder who renounced citizenship), and those who have spent the majority of their lives abroad, etc. Unfortunately, relinquishing citizenship and ending long-term residency is not as easy as mailing in your passport or green card and booking a flight with your belongings. There is much more involved from a tax perspective when expatriating and it should be done with input from an attorney and a qualified tax professional. Below you will find 10 starting questions and answers regarding expatriation and Form 8854, Initial and Annual Expatriation Statement. Read more

Christine Hradsky No Comments

Foreign Currency: What Does The IRS Say About It?

Foreign CurrencyBy Bethany Bouw, CPA

More now than ever people travel, work, and live all around the world. Therefore, understanding how to deal with foreign currency is becoming even more relevant. Taxpayers who have transactions in foreign currencies often wonder what they need to report and how they get the foreign currency into US dollars. Let’s review four of the most widely asked question regarding a taxpayer’s responsibility when dealing with foreign currency. Read more

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IRS Issues Guidance Deducting Meals Bought During Entertainment

Deducting Meals

Guidance has been issued on the ability of small business owners to make deductions for meals bought while entertaining customers.

The IRS recently provided transitional guidance about the deductibility of expenses for business meals that are purchased in an entertainment context. (IRS Notice 2018-76)

The Basics

Businesses can deduct ordinary and necessary expenses paid or incurred during the tax year in carrying on a trade or business. Before it was amended by the Tax Cuts and Jobs Act, the tax code generally prohibited deductions for entertainment, amusement or recreation activities. However, the tax code provided exceptions to that prohibition, so many businesses could write off some entertainment expenses. Read more

Christine Hradsky No Comments

Reporting Income from Vacation Home Rentals Under Today’s Tax Rules

Vacation Home

Those who own a vacation home for personal and rental use need to know how to report the income and expenses under the new tax law.

Do you own a vacation home that’s rented out but also used for a significant amount of time by you personally? Such properties are subject to tax rules that are different from those that apply to properties rented out with minimal personal use. Here’s how to optimize your tax results in light of several key changes made by the Tax Cuts and Jobs Act (TCJA). Read more

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Tax Savings from Cost Segregation Studies Add Up for Businesses

Cost Segregation

If you purchased real estate for business, a cost segregation study can help substantially reduce your company’s tax bill.

Has your company invested in buildings this year to rent out or use for business purposes? Real estate investors have used cost segregation studies for many years to lower their tax bills. In a nutshell, these studies divide property into smaller parts, allowing for faster depreciation of certain parts of a building. Read more

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Fight Back Against Internal Fraud

Internal Fraud

Internal fraud can take a toll on your operation. Here are some tips to fight against it.

Internal fraud drains approximately $4 trillion annually from global businesses, according to an estimate by the Association of Certified Fraud Examiners (ACFE).

The median loss from internal fraud at companies in the construction industry is $227,000, according to ACFE’s latest Report to the Nations. Read more

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Foreign Taxation Technical Update: Section 965 Guidance

Summary

On October 1, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) issued Notice 2018-78 (the Notice). The Notice provides guidance with respect to the basis election under Prop. Reg. §1.965-2(f)(2), the application of rules for disregarding certain assets for determining aggregate foreign cash position in Prop. Reg. §1.965-3(b) to consolidated groups and relief in connection with Hurricane Florence. Read more

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Apply the Critical Path Method to Manage Cash Flow

Cash Flow

One way to help ensure your company meets it’s cash flow and financial goals is to apply a form of critical path analysis.

Construction project financing and cash flow management are unique for several reasons.

First, start-up construction companies are very easy to form with the “two men, tools, and a truck” business model. Because of this, credit and business history often are not extensive as the positive histories that typically give businesses access to large sums of capital to start the business. Read more