R&W Editor No Comments

Demystifying Casualty Loss Deductions

The days when you could claim deductions for run-of-the-mill casualty and theft losses of personal property are gone — at least temporarily. The Tax Cuts and Jobs Act (TCJA) generally suspends write-offs for such expenses for 2018 through 2025.

However, you can still claim deductions for personal property losses caused by certain federally declared disasters, such as the COVID-19 pandemic. In addition, the Taxpayer Certainty and Disaster Tax Relief Act enhanced deductions available to eligible individuals — but only for a limited time. Here are the details.

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R&W Editor No Comments

Crunching Numbers for Multiple Corporations

It might be advantageous from a tax standpoint to run a business through multiple entities. For example, a construction company might form a separate company to own and lease its trucks and equipment back to its related entities. Or a corporation might transfer appreciated property to an affiliated corporation in order to limit risk in case it is sued.

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Christine Hradsky No Comments

Tax Court Sets Boundaries on Commuting Deductions

Commuting Deductions

Commuting between your residence and place of business are generally non-deductable, but there are a few exceptions.

Although you usually can’t deduct typical “commuting” expenses from home, you may qualify for a special exception if you’re away working on temporary assignments. But the IRS and the U.S. Tax Court won’t allow borderline deductions, as evidenced by one case involving a construction worker.

We’ll explain what happened in the case, but first, here is some background information. Read more

Christine Hradsky No Comments

Calculating Deductions for Business Interest Expense

interest expense

The Tax Cuts and Jobs Act generally limits business interest expense deductions for businesses with average annual gross receipts over $25 million, with a few industry-specific exceptions.

One of the most complicated provisions of the Tax Cuts and Jobs Act (TCJA) is the new limitation on deductions for business interest expense. At face value, this limitation seems straightforward, but the devil is in the details. Read more