CALIFORNIA, WHOSE STATE-RUN PUBLIC PENSION PLANS ARE WOEFULLY UNDERFUNDED, WILL NOW REQUIRE BUSINESSES TO OFFER A STATE-RUN RETIREMENT PLAN FOR THEIR EMPLOYEES   Beginning June of 2020, and phasing-in through June of 2022 for businesses with 5 or more employees, California is mandating businesses provide employees with a retirement plan option.  CalSavers, a state-run retirement … Continued

The tax rules relating to litigation recoveries and costs are complicated. They have been made more so by the Tax Cuts & Jobs Act of 2017.  The new tax legislation which applies to recoveries and costs in 2018 and beyond makes it a good time to review the complex labyrinth of tax rules that apply … Continued

The Tax Cuts and Jobs Act of 2017 made expansive changes to our federal tax laws. The key tax benefit for businesses owned by individuals is the Qualified Business Income (QBI) Deduction, also known as the Pass-Through Business (PTB) Income Deduction. Taxpayers that have business interests in sole proprietorships, partnerships, LLCs, S-corporations, rental real estate, … Continued

This past Friday, President Trump signed into law the most expansive changes to our federal tax laws in over 30 years. The centerpieces of this new legislation are aimed at making American business & industry more competitive in the global marketplace. The key pro-business provision that applies to individuals is the so-called pass-through business income … Continued

As you are probably aware, Tax Reform has passed both the House and Senate, which means major changes in preparing tax returns next year.  Significant changes have been made to Itemized Deductions found on Schedule A of your federal return.  These changes may or may not have affected you before, but perhaps they are areas … Continued

Businesses may finally be able to fully expense the cost of business property, including inventory. Under the provisions of the new tax reform bill, passed by congress today, there are three areas that expand current rules allowing for such expensing.   Small Business Accounting Method Under current law, if a business falls under the rules … Continued

PASS-THROUGH BUSINESS INCOME TAX BENEFITS UNEXPECTEDLY GRANTED TO ESTATES AND TRUSTS! A highlight of Congressional tax reform plans included tax benefits for pass-through entities, including partnerships, limited liability companies and S-corporations (see our website blog post of December 4, 2017 about the pass-through entity provisions). The House and Senate versions differed significantly in approach. The … Continued

It looks like the Tax Reform Conference Committee is getting close to reconciling the House and Senate- passed versions of the most massive change to our federal tax laws since 1986. Sources indicate that the final version of the combined bill could be released tomorrow afternoon, Friday, December 14th and that it could be voted … Continued

Here at Skorheim & Associates we serve numerous lawyers and law firms, and so we have been monitoring the current Tax Reform proposals for changes that will affect the legal community. While lawyers and law firms will of course be impacted by the general tax law changes included in the competing House and Senate tax … Continued

With the specter of Tax Reform looming, year end tax planning is especially important. The tax legislation that is winding its way through Congress includes significant tax relief for businesses. If Tax Reform comes to fruition resulting in lower tax rates for businesses in 2018, it might make sense to reduce taxable income this year … Continued