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    Month: February 2020

    Inflation Adjustments for Form 461

    As discussed on pages 50 to 52 of the Tax Year 2018 M+O=CPE Individual Tax Year-End Workshop Reference Book, effective for 2018 and later tax years (and scheduled to expire after 2025), non-corporate taxpayers are limited in the amount of business losses that can be deducted against other income on the individual income tax returns.  The limit is computed on Form 461, Limitation on Business Los...

    Partnership Capital Reporting

    The draft instructions for the 2019 version of Form 1065, U.S. Return of Partnership Income, indicated that partnerships were required to report a partner’s capital account analysis (reported in Part L of Schedule K-1) on the tax basis.  For 2018 and earlier tax years, partnerships were permitted to report a partner’s capital account using the tax basis, generally accepted accounting princi...

    New York Bag Fee Begins March 1, 2020

    As part of the ban on single-use plastic bags, which goes into effect on March 1, 2020, effective on that same date, vendors in Suffolk County, New York City and Tompkins County must generally charge a fee of 5 cents per bag for paper bags that are provided to customers, and this fee must be remitted to New York State as part of their sales tax returns.  (The fee that is remitted to New York is...

    Qualified Opportunity Funds: Gifts, Death or Divorce

    As discussed on pages 64 to 66 of the Tax Year 2019 M+O=CPE Individual Tax Year-End Workshop Reference Book, taxpayers with capital gains can defer the recognition of those gains by reinvesting the amount of the gain into a qualified opportunity fund.  On December 19, 2019, the Treasury Department issued final regulations related to investing in qualified opportunity funds.  (See Treasury Deci...