Zinner & Co. Blog and Newsroom

IRS Sends Out Letters Regarding Monthly Child Tax Credit Payments

Posted by Zinner & Co. Tax Team on Jun 14, 2021 1:30:00 PM

In early June, the Internal Revenue Service started sending letters to families about how they may be able to qualify for monthly Child Tax Credit payments.

The letters are going out to families who may be eligible based on information they included in either their 2019 or 2020 tax return or who used the Non-Filers tool on IRS.gov last year to register for an Economic Impact Payment.

Read More

Topics: IRS, tax avoidance, Tax Credit, Child Tax Credit, American Rescue Plan Act

The Biden Administration's Proposed Tax Law Changes

Posted by Zinner & Co. Tax Team on Jun 8, 2021 9:10:00 AM

In early June, the U.S. Treasury Department released its general explanations of proposed changes to the U.S. tax code.

Please note, the following items have only been proposed. In order to become law, they must pass through both the U.S. House of Representatives and the U.S. Senate.

Read More

Topics: Taxes - Corporate & Business, Taxes - Individual, tax, taxes, income tax, tax avoidance

New 1099-NEC Form For Nonemployee Compensation

Posted by Zinner & Co. Tax Team on Nov 23, 2020 10:31:30 AM

The PATH Act accelerated the due date for filing Form 1099 that includes nonemployee compensation (NEC) from February 28 to January 31 and eliminated the automatic 30-day extension for forms that include NEC. Starting with tax year 2020, taxpayers should use Form 1099-NEC to report nonemployee compensation.

Form 1099-NEC replaces the use of box 7 on Form 1099-MISC from previous years. Other uses of 1099-MISC have not changed and will continue to be used for common payments such as rent and payments to an attorney.

Read More

Topics: Taxes - Planning, Rules and Returns, Taxes - Individual, tax, taxes, income tax, tax avoidance

Plan for Tax Season

Posted by Brett W. Neate, CPA, MTax on Jan 30, 2020 9:13:00 AM

Many individuals may think the time to plan for tax season occurs during the tax season, which occurs after their tax year has ended.

Unfortunately, this is often too late to make any adjustments, which may have benefited the taxpayer.  

Similarly, businesses can also fall into this line of thinking and fail to plan for tax season during their tax year.

Read More

Topics: tax services, Taxes - Corporate & Business, Taxes - Planning, Rules and Returns, Taxes - Individual, tax, taxes, income tax, tax avoidance

Ask the Expert: What Does ‘Like-Kind’ Mean in a 1031 Exchange?

Posted by Zinner & Co. Real Estate Team on Nov 12, 2019 5:06:00 AM

Q: What Does ‘Like-Kind’ Mean in a 1031 Exchange?

A: As you are probably aware, a 1031 Exchange refers to a provision in the U.S. tax code, which allows real estate investors to sell or dispose of a piece of real property and purchase another piece of “like-kind” property without incurring any short-term tax consequences. But what does like-kind mean?

Read More

Topics: real estate, income tax, tax avoidance, personal finance, 1031 Exchange

5 Reasons You Should Begin Planning for Tax Season NOW

Posted by Zinner & Co. Tax Team on Nov 7, 2019 5:00:00 AM

It’s the 4th quarter. The holidays are right around the corner. The last thing you may want to think about is income taxes … but there are some compelling reasons why you should be thinking ahead.

Last year’s tax season saw the biggest change to the tax code in over 30 years. At the end of the tax season, we noted that one of the lessons learned was that individuals who engage us in tax planning early, on average, fared much better than those who did not. There are some very important reasons for this:

Read More

Topics: tax services, Taxes - Corporate & Business, Taxes - Individual, income tax, tax avoidance

ALERT: Be Wary of States Circumventing the $10,000 SALT deduction limitation

Posted by Zinner & Co. Tax Team on Sep 20, 2018 10:19:00 AM

Current Law:

The Tax Cuts and Jobs Act of 2017 limits individual taxpayer's state and local tax (SALT), itemized deduction to $10,000 (including real estate taxes). The previous law allowed an unlimited deduction. This change may be detrimental to many individual taxpayers who relied heavily on these deductions in the past.

State Work-Arounds:

Some states have considered "work-arounds" to combat this limitation. Select states (California, Connecticut, Illinois, New York and New Jersey, thus far) have created state

Read More

Topics: Taxes - Planning, Rules and Returns, Taxes - Individual, deductions, taxes, IRS, tax avoidance, Tax Cuts and Jobs Act of 2017

The new tax law will change divorce tactics

Posted by Zinner & Co. Tax Team on May 7, 2018 2:55:00 PM

When couples divorce, financial negotiations often involve alimony. The tax rules regarding alimony were dramatically changed by the Tax Cuts and Jobs Act (TCJA) of 2017, but existing agreements have been grandfathered. In addition, the old rules remain in effect for divorce and separation agreements executed during 2018. Next year, the rules will change, and the roles will be reversed.

Under divorce or separation agreements executed in 2018, and for many years in the past, alimony payments have been tax deductible. Moreover, these deductions reduce adjusted gross income, so they may have benefits elsewhere on a tax return. While the spouse or former spouse paying the alimony gets a tax deduction, the recipient reports alimony as taxable income.

Shifting into reverse

Beginning with agreements executed in 2019, there will be no tax deduction for alimony. As an offset, alimony recipients will not include the payments in income.

Read More

Topics: alimony, divorce, Taxes - Planning, Rules and Returns, Taxes - Individual, taxes, tax avoidance, Tax Cuts and Jobs Act of 2017

“Kiddie Tax” impacted by Tax Cuts and Jobs Act

Posted by Zinner & Co. Tax Team on Apr 18, 2018 12:39:00 PM

Many higher income taxpayers have long made it a practice to open investment accounts for their children, hoping to take advantage of their lower tax rates.  Many years ago, Congress imposed, what is colloquially known as the “kiddie tax” to place strict limits on the amount of investment income that can be taxed at those lower rates. 

One of the changes made by the recently enacted Tax Cuts and Jobs Act of 2017 made some significant changes to how the “kiddie tax” is administered, impacting the way adults pass investment income on to their minor children. 

The "kiddie tax" is a provision that taxes the unearned income of children under the age of 19 and of full-time students younger than 24 at a special rate. Under both the new law and the old, the first $1,050 of a child's income is tax-free and the next $1,050 is taxed at a rate of 10 percent.

Read More

Topics: tax services, Taxes - Planning, Rules and Returns, Taxes - Individual, Retirement Planning & IRAs, withdrawls, tuition, tax avoidance, Tax Cuts and Jobs Act of 2017

CATEGORIES

Latest Posts

Learn why Zinner & Co. loves Cleveland

Subscribe to Our Blog