Blog - Philadelphia CPA
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Get ready. You may be about to experience another encounter with the law of unintended consequences. The Tax Cuts and Jobs Act gives you a possible 20 percent tax deduction on your rental property income. But that’s only if your rental property is a trade or business,...

What’s truly totally upsetting and avoidable? A tax surprise! Arthur E. Boyce claimed a $28,749 Section 179 deduction for the cost of his new truck. In walked the IRS, and it denied the Section 179 deduction because Boyce leased the truck that he thought he purchased. The court...

 First things first. Your Section 199A tax deduction will benefit from your business’s W-2 wages paid to you and your employees if you are married and filing jointly and your taxable income is over $315,000 and less than $415,000; are filing as single or head of...

You may have wondered why an S corporation can pay for or reimburse a solo owner-employee’s individually purchased health insurance without worrying about the $100-a-day penalty. The answer is that the S corporation’s payments of the solo shareholder-employee’s individual health insurance premiums are exempt from the...

 Your ownership of a pass-through trade or business can generate a Section 199A tax deduction of up to 20 percent of your qualified business income (QBI). The C corporation does not generate this deduction, but the proprietorship, partnership, S corporation, and certain trusts, estates, and rental...

Alimony PaymentsFor divorce agreements executed or modified after December 31, 2018, alimony is tax-free to the recipient and no longer tax deductible for the payor.199A DeductionSole Proprietorships, partnerships, and S Corporations may be eligible for the new 20% deduction of qualified business incomeItemized Miscellaneous DeductionsItemized...

For most small businesses and the self-employed, the 20 percent tax deduction from new tax code Section 199A is the most valuable tax deduction to come out of the Tax Cuts and Jobs Act tax reform. The Section 199A tax deduction is complicated, and many questions...

The Tax Cuts and Jobs Act (TCJA) tax reform added an amazing limit on larger business losses that can attack you where it hurts—right in your cash flow. And this new law works in some unusual ways that can tax you even when you have no...