Anthony Sykes & Company

          At the end of August, the Internal Revenue Service ( IRS ) released some new guidance on changes related to Qualified Business Income ( QBI ) as covered in Section 199A . When the Tax Cuts and Jobs Act ( TCJA ) took effect, QBI was a topic of interest for many businesses. If the amount was determined correctly, it would directly lead to tax savings for the business. The calculations for this deduction have now changed.           All items related to a trade or business must be considered, including charitable contributions and unreimbursed partnership expenses. The new guidance indicates that QBI will be reduced by the amount of charitable donations made by the business. As a result of this and other changes, the Qualified Tax Professional handling the taxes for the affected businesses will need to make several manual adjustments to the Tax Return. Tax software has not been able to keep up with thes...

        For Taxpayers who use part of their home as an office for their business, certain expenses may be deductible. This is available to those who own as well as rent their home. The deductions can include mortgage interest, insurance, utilities, maintenance, and rent. There are, however, specific requirements that must be met.           A home can be any structure used on a property, as long as it is not a hotel or motel. There must be a dedicated part of this home where business is conducted. That home must be the place where most business is handled. This can include administrative or management functions of the business. In this way, if business is done outside the home, the Home Office Deduction can still be claimed. There are different methods that can be used to calculate the Home Office Expense Deduction. Speak with your Qualified Tax Professional to determine how this deduction applies to you and your bu...

        For employers who offer paid family and medical leave for their employees, they may qualify for a tax credit. There are several eligibility requirements that must be met in order to claim this credit. There must be at least 2 weeks of paid leave offered to full-time employees and a certain amount of time made available to part-time employees as well. This tax credit has a limited window of availability. It is only applicable for wage paid between December 31, 2017 to January 1, 2020 . The actual amount of the credit will be determined by how much employers paid their employees for reasons related to family or medical leave. The reasons for using this type of leave from work could be something like to having or caring for a child, caring for a family member with a serious health condition, or an emergency due to a family member being called to active duty. With time running out, get in contact with your Qualified Tax Professional to find out if you ca...

The Internal Revenue Service ( IRS ) has been sending out letters to many Taxpayers informing them of errors that may have been made in previous Tax Returns. The root cause of these errors has to do with cryptocurrency or virtual currency. By the end of the month, over 10,000 letters will have been sent out.           This is part of an active compliance campaign being conducted by the IRS . As the popularity of virtual currency increases, many do not realize that it is taxed as property from the Federal level. The purpose of sending these letters and having an education campaign is to help affected Taxpayers understand their obligations and know how to fix past mistakes. This also sends a clear message that the IRS will be fully enforcing the tax law in this area. Non-compliance regarding virtual currency is a growing focus within IRS Criminal Investigation. Now is the time to understand how these currencies can truly impact your bottom line.