Insights
Tax Tidbits – Travel Expenses for Family Members
Social media is full of questionable “tax advice” about the deductibility of travel expenses for family members. A quick scroll through TikTok or X (the artist formerly known as Twitter) will produce multiple “sources” proclaiming that all you have to do is discuss business over dinner or take a...
Tax Tidbits – Underpayment Penalty
The United States tax system is “pay-as-you-go,” which means that taxes are paid as income is earned. For employees or taxpayers taking distributions from retirement accounts, this is handled through withholding. For self-employed workers or taxpayers with large amounts of untaxed income, such as...
Tax Tidbits – Expanded 529 Expenditures
The Tax Cuts and Jobs Act (TCJA) expanded the uses for funds in 529 accounts to include amounts paid for K-12 tuition (limited to $10,000 per year). The One Big Beautiful Bill (OB3) Act added even more eligible expenditures for K-12 students, as well as opening up the use of funds to pay for...
Tax Tidbits – FICA Tips Credit
One of the new deductions that came out of the One Big Beautiful Bill (OB3) Act is the deduction for qualified tips, but there is another tip related provision that many taxpayers aren’t aware of, the FICA Tips Credit. Let’s be honest; many taxpayers don’t report the tips that they receive....
Tax Tidbits – Bonus Depreciation
Bonus depreciation has been one of the more unpredictable provisions over the years, as it seemed to be in a constant state of expiring and being extended. With the passage of the One Big Beautiful Bill (OB3) Act, bonus depreciation is permanent! It’s not all good news, however. The permanent...
Tax Tidbits – Qualified Business Income Deduction
The Qualified Business Income (QBI) Deduction, also sometimes referred to by its code section 199A, was a Tax Cuts and Jobs Act provision that allows taxpayers with, you guessed it, qualified business income, to take a deduction of up to 20% of their QBI from eligible trades or businesses. That...
Tax Tidbits – Trump Accounts
If you were wondering why they chose 4547 for the form number to open a Trump Account, you need look no further than the man himself. Donald Trump served as the 45th and now 47th President of the United States, hence Form 4547. The form can be filed with the tax return, or as a standalone. It even...
Tax Tidbits – MFS and VLI
For the Tips, Overtime, and Senior deductions, married taxpayers must file a joint return in order to claim the deductions unless they meet the qualifications to file as Head of Household. The one exception to this is the new deduction for Qualified Vehicle Loan Interest.Taxpayers may deduct up to...
Postmark Timing Updates: Compliance Implications for Taxpayers
Learn how IRS postmark rules and USPS timing changes affect tax filing deadlines. Avoid penalties with certified mail and compliance best practices.
Qualified Passenger Vehicle Loan Interest Updates
Get the latest IRS updates on Qualified Passenger Vehicle Loan Interest deductions. Learn how personal use rules impact eligibility and maximize deductions.
The IRS Won’t Enforce the Law Because It’s “Particularly Difficult”
We expect to see more guidance on some provisions, but for tax year 2025, some claims will require some extra work and some extra diligence.
Car Loan Interest Deduction: Reporting Considerations
Taxpayers who purchase a new vehicle with final assembly in the US may deduct interest they pay on the loan for that vehicle. Learn how it works.
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Questions about California Clergy
Ask Us Anything Dear Brass Tax Presentations, I have taken on a church as a client. They have not applied for non-profit status (I know they are deemed a non-profit since they are recognized as a church). The previous person (now deceased) handled their info. They issued the pastor’s W-2 with...
Lacerte IRA Adjustment for California
Ask Us Anything Dear Brass Tax Presentations, We are having some confusion over the following topic and were wondering if you could provide some guidance… Does California conform to the IRS regulation allowing for a $1,000 IRA catch-up contribution deduction for taxpayers who are 50 years old or...
Statute of Limitations for Refunds
Ask Us Anything Dear Brass Tax Presentations, We amended a 2019 Form 1040 from MFS to MFJ. The original return was e-filed on 3/28/22, and amended on 3/18/24 (within the 3 years). However, the IRS rejected the refund request because the amendment was “filed late”, that it is 3 years from the due...
Identifying Basis in Cryptocurrency
Ask Us Anything Dear Brass Tax Presentations, I understand cryptocurrency gains/losses can be reported using FIFO or specific identification. Then, LIFO or HIFO could be used as forms of specific identification. If a taxpayer wants to use one of these methods, do they have to identify the...
Help Me Report K-1 Income from an LLC to a Disregarded SMLLC
Ask Us Anything Dear Brass Tax Presentations, TP is 50% owner in a 2 member LLC (LLC#1). TP forms a CA SMLLC (LLC #2) and receives a tax ID for it. When LLC#1 begins reporting on a K-1 to LLC#2, how do I report on the 1040? Because LLC#2 is a disregarded entity, should I just report the K-1 as I...
Help Me With Navigating S-Elections for C-Corps and LLCs
Ask Us Anything Dear Brass Tax Presentations, After numerous back and forths with the owner of the C-Corp and upon her consulting with a friend of hers who has bought and sold a few businesses over the years, I think the deal is dead. I told her she could reduce the sale price (if it were...
Help Me With Claiming Tax Credits for a Dual-Use Property
Ask Us Anything Dear Brass Tax Presentations, A prospective client and a property that is 50% his primary residence and 50% rental property. Can we claim half of the credit as a business credit and half as an energy-efficient credit? Thanks for your help.From Brass Tax Presentations If 20% or less...
Help Me With Mid-Term Rental Situations
Ask Us Anything Dear Brass Tax Presentations, I recently purchased the Short-Term Rentals Comprehensive Strategy and have gone through it. However, I was hoping it would address Mid-Term rental situations. Mid-term rentals (longer than 30 days due to HOA rules to prevent short-term rentals) but...
Help Me With Basis For Gifted S-Corp Stock
Ask Us Anything Dear Brass Tax Presentations, Please help me with form 1120s on form 7203. My sister elected her LLC to be taxed in the 1120s. She has 200 common stocks in her S Corp, and she had zero stock basis on 1/1/2023, as noted in her form 7203. Suppose my sister transferred (as a gift to...
Help Me With a Rental Held In a Self-Directed IRA
Ask Us Anything Dear Brass Tax Presentations, How is selling a rental held in an IRA treated? Would the proceeds be treated as ordinary income when distributed? Thanks for your help.From Brass Tax Presentations Self-directed IRAs can be complex, with numerous potential issues and a need for clear...
Help Me With Wages Paid To Partners
Ask Us Anything Dear Brass Tax Presentations, I've taken your courses for a few years - since I started preparing returns officially. I have a question about partnership (1065) and payroll. We set up payroll for the partners however, the 1065 doesn't have a wage spot for partners. How do I report...
Help Me With a Question About Child Care Income
Ask Us Anything Dear Brass Tax Presentations, I need your expertise on this because I only have one other client in this similar situation. Grandmother goes to her daughter's home to care for her grandchildren 2-3 times a week. She gets paid by Child Development Asso Inc. It's only $7900. She...
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