Author Archives: Nick Spoltore, Esq.

On July 25, 2019, the announcement of Rev. Proc. 2019-32 provided welcomed relief for Form 1065 filers. Under Section 6031(b), partnerships under the centralized audit regime are prohibited from amending, after the return’s due date, K-1 information required to be provided to partners. For 2018 returns, the K-1s show for the first time Line 20 […]

The Taxpayer First Act of 2019 was signed into law on July 1, 2019. The Act contains numerous provisions largely dealing with customer service to taxpayers and IRS organization. As such, there is little for professionals to digest in terms of substantive planning or practice. Two points, though, are noteworthy. The Act established the IRS […]

IRS issued final regs (T.D. 9864) reiterating if a taxpayer receives or expects to receive a state or local tax deduction exceeding the amount of the payment or fair market value of the property, the federal charitable contribution deduction faces mandatory reduction. The final regs largely mirror the proposed regs of August 2018 with little […]

As you probably are aware, final regulations were issued January 18, 2019 implementing the new Qualified Business Income (QBI) deduction of §199A. In response to arguably the most requested clarification from tax professionals, Notice 2019-07 separately issued a proposed revenue procedure containing a safe harbor under which a rental real estate enterprise will be treated […]

IRS announced the 2019 COLA adjustments to retirement plan limits on November 1, 2018 in Notice 2018-83. Elective deferrals for 401(k), 403(b), etc. plans rise from $18,500 to $19,000, plus $6,000 for those age 50 or older. The limit on defined contribution accounts increases from $55,000 to $56,000. The definition of a key employee in […]

Since TCJA passed last December, we have heard from a multitude of professionals with varying levels of concern regarding the continued existence of the food and beverage deduction in light of the fate of entertainment expenses. Well, Notice 2018-76, issued October 3, 2018, clarifies that taxpayers generally may continue to deduct 50% of the food […]

IRS Basically Shuts Down SALT Deduction Workarounds

In Proposed Regs 112176-18 issued August 23, 2018, IRS put a major damper on efforts to skirt the TCJA’s state and local tax deduction cap. I have found in talking to various professionals that these so-called SALT deduction workarounds are not very well understood in practice or effect. So, let’s start with a basic understanding […]

The IRS issued proposed regulations (107892-18) on August 8, 2018 regarding the passthrough deduction of §199A. Excepting the new season of Orange Is the New Black, nothing else has garnered as much anticipation this Summer as the arrival of these regs. Having read all 184 pages, I can tell you there is a lot of […]

Much has been written about Qualified Improvement Property (QIP) lately. QIP is defined as any improvement to an interior portion of a building that is nonresidential real property if such improvement is placed in service after the date such building was first placed in service. QIP does not include any improvement for which the expenditure […]

On July 24, 2018, House Republicans released their outline of Tax Reform 2.0. Interestingly, the outline commits to improving the tax code every year and likens the process to upgrading apps on a phone. Three main points are discussed. Making the individual and small business tax cuts of the Tax Cuts & Jobs Act permanent […]