Talking with TaxSpeaker Video 45
1. Can you please clarify – do outdoor HVAC units now qualify for section 179 and bonus? Also, can we take 179 on commercial rental properties? I know we can take it now on residential rentals but wasn’t sure about commercial rentals.
2. Are we required to give an IRS agent access to our QuickBooks Online account? If yes, what is the cite, if no, what is the cite as the agent is requesting access.
3. Does rental income from property owned in Bahamas qualify for "extraterritorial income exclusion"?
4. Does the sale of a business in 2018, where the business qualified for QBI, does the gain on the sale of the business in 2018 qualify for QBI?
5. If grandparents adopt they grandchild, who doesn’t have any special needs, a healthy child. Do they receive any tax credit for this adoption. We have thinking no. Thanks
6. Business has assets in Real Estate $1,000,000, Personal Property $ 200,000 and Business Goodwill of $ 250,000. Thus Real Estate will be section 1250 asset, Personal Property will be Section 1245 asset and Business Goodwill will be section 197 asset. Upon Sale of the business for $2,500,000, only Real Estate portion may qualify for 1031 exchange and taxpayer will have to recognize gain or loss for section 1245 asset and section 197 asset based on allocation on Sale Price.. Am I correct in understanding this? Also, we have to ask taxpayer to break down Sale Price into three categories (1250 assets, 1245 assets and section 197 assets). Am I correct in asking taxpayer to do so? Just my observation that so far we had to diligently worry for purchase price allocation and now we have to worry for both, purchase price and selling price.
7. For a Schedule C (sole Prop) QBI …….do you subtract ½ SE tax and self- employed health insurance from the net profit of the schedule C to compute the QBI deduction.
8. On the trade in of tangible property – where we are now required to show on Form 4797… Does the recapture of depreciation from that trade in qualify for the qualified business income deduction?
9. QBI specified services... Since many tax preparers are not also accountants, do you believe that tax preparation falls under the heading of "accounting" and therefore no deduction if it is over the phase out limits? In other words, could a CPA carve out the tax preparation services from the accounting services and perhaps get QBI if over the phase out limits for the tax preparation business?
What are your thoughts on people who have no designations and only prepare taxes and perform absolutely no accounting?
10. I have another training company that specifically states tax preparers and financial planners are not able to take the 20% QBI deduction. But Bob explicitly used tax preparer in his example. I did hear Bob reiterate his reasoning for tax preparer as for profit business. I know I am going to have a fight with my staff about the SSTB Special Services Trade or Business, please advice.
11. Would food provided by a real estate agent be considered the cost of the event and therefor 100% deductible or still limited to 50%.
12. Watched the business pension plan webinar but the topic of “Keogh Plans” was not touched on. Could you give a thumbnail sketch of that? Is it broken down between salary deferral and contribution pieces? And is there a catch up provision?
13. My understanding is that self rentals qualify for the QBI deduction. Does this mean that a self rental due to rules of attribution would also qualify? For example, an S-Corporation owned 100% by son pays rent to his parents who own 100% of the building, would parents qualify for QBI for their Schedule E self rental?
14. We really enjoyed your YouTube post re Wayfair decision and small business burden. Maybe “resonated with” rather than “enjoyed.” Reading Notice 2018-99 and its effect on small business owners made me feel much the same way; ticked off about the ridiculous complexity and absurdity and bad taste of Congressional Tax Soup. Wondered if you had any comments or thoughts to share in the newsletter or in the weekly Talking with TaxSpeaker series. No specific question. Just peeved.