Insights
Kitchen Remodels: Deduction vs. Capitalization – What You Need to Know
When it comes to upgrading a rental property, few projects raise more questions than kitchen remodels. At a glance, they seem like improvements—new cabinets, updated appliances, maybe a new layout. But under IRS rules, not all kitchen upgrades must be capitalized. In fact, some expenses can be...
IRS Guidance On Theft Losses From Common Scams (2018–2025)
In recent years, there has been a rise in the number of losses resulting from scams. In our Update seminars, we have discussed the treatment of these losses, particularly as they relate to cryptocurrency. We believed that many of these scam losses qualified as investment losses on the federal tax...
Oil and Gas K-1’s: Self-Employment Tax Tricks
Understanding Self-Employment Tax in Oil and Gas Partnerships Investing in oil and gas partnerships can provide significant tax advantages, but it also brings unique tax obligations—particularly regarding self-employment tax. Many investors enter these ventures without fully understanding how...
Daily Netting of Gambling Wins/Losses
In lieu of filing a separate information return for each payment of reportable gambling winnings, a payor may use the aggregate reporting method to report gambling winnings from bingo, keno, or slot machine play on a daily basis. An information reporting period is either: A "calendar day"...
CA Basis in Paid Family Leave Benefits
Nondeductible contributions create basis If a governmental unemployment compensation program is funded in part by an employee's contribution that is not deductible by the employee, then any amount received by the employee under the program is not taxable until the employee has received an amount...
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Help Me With a Question About a Leased Tesla
Ask Us Anything Dear Brass Tax Presentations, An individual leased a Tesla Model 3. Can he get any of the $7500 credit on his tax return? I say no. Sorry, just so much conflicting information out there. Thank you so much. From Brass Tax Presentations The taxpayer must purchase the vehicle...
Help Me With COVID Credits For The Self-Employed
Ask Us Anything Dear Brass Tax Presentations, Are there still COVID credits from the IRS for self-employed individuals? I have been self-employed for the last 20 years; I don't have any employees. I keep hearing about COVID credits for the self-employed and wanted to hear from you about this....
Help Me With The EIC Credit 2023
Ask Us Anything Dear Brass Tax Presentations, I have a client who is married and has a 15-month son. She lived in the USA all year with a child in 2023 and paid all expenses. Her husband immigrated to the USA in August 2023 and lived with her. Is any of these questions applied to them for EIC...
Help Me With Employer HSA Contribution Questions
Ask Us Anything Dear Brass Tax Presentations, When the owner of an S-Corp makes an employer HSA contribution. How is it treated on the shareholder's personal tax return? Thank you! From Brass Tax Presentations If an S-Corp makes employer contributions to the HSA of a 2% or more...
Help Me With The 1095A
Ask Us Anything Dear Brass Tax Presentations, I have an RDP who is self-employed. She has a plan under Covered California that only covers her RDP, not herself. Does the Federal allow her to claim the SEHI deduction for the premiums paid for her RDP? Should I assign the 1095A to her RDP on his...
Help Me With The 8915 Form
Ask Us Anything Dear Brass Tax Presentations, I attended your presentation in Fresno, CA & enjoyed it tremendously! I did forget however to ask about the flooding in CA and being able to split the retirement disbursement over three years. I do reside in a county that was declared a disaster...
Help Me With a Qualified Public Safety Officer Exclusion
Ask Us Anything Dear Brass Tax Presentations, With regards to the qualified public safety officer exclusion no longer being needed to be paid directly to the insurance providers, is that change effective for 2022 tax returns or did it just start in 2023? Said in another way, should I go back and...
Help me With Form 7203
Ask Us Anything Dear Brass Tax Presentations, I have a question regarding an S-Corp client with 4 shareholders, specifically the tax effects on stock/debt basis / Form 7203. All four shareholders have a $0 stock basis. Two shareholders have some debt basis due to informal shareholder loans. Some...
Help Me With a Centralized Partnership Audit Regime Election Question
Ask Us Anything Dear Brass Tax Presentations, I was looking at the Updates to 2023 Returns book and on page 203 & 204 there is the topic of Partnerships electing out of the Centralized Audit Regime for IRS audits. After reading this section, it looks like I need to amend our partnership...
Help Me With a Qualified Commercial Clean Vehicle Credit
Ask Us Anything Dear Brass Tax Presentations, My client claimed a qualified commercial clean vehicle credit through his S-corporation, and the credit was listed on form 3800. However, the IRS sent a notice stating that Form 8936 was incomplete or missing. If I entered the same information on the...
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