Along with the tried-and-true year-end tax planning strategies that are relevant each year, there are always some new wrinkles to consider resulting from new tax legislation provisions coming into effect and new Internal Revenue Service (IRS) guidance on existing tax provisions. The Tax & Accounting division of Wolters Kluwer has recently issued a tax briefing addressing some of the year-end tax planning strategies for the upcoming tax season.
Key items to consider in year-end 2019 tax planning include:
- Qualified Business Income Deduction: The IRS has issued new guidance on when a real estate activity constitutes a trade or business for purposes of the 20 percent qualified business income deduction
- Qualified Opportunity Zones: Gain on the sale of property in 2019 must be invested in a Qualified Opportunity Fund (QOF) by December 31, 2019 to qualify for the maximum 15 percent forgiveness of tax on the gain. Also, the IRS has issued a new proposed form for reporting QOF investments
- Technical Corrections, Expired Provisions, and Disaster Relief: Although there is legislation in Congress involving technical corrections to the Tax Cuts and Jobs Act, as well as over 30 tax provisions that expired at the end of 2017, it appears unlikely that the legislation will make it through Congress this year. Those corrections, if passed could affect not only 2019 but also 2018 tax returns
- Virtual Currency: The IRS has added a new question to the tax return as to whether or not the taxpayer has engaged in a virtual currency transaction during the year
You can access the Wolters Kluwer Tax Briefing dated November 7, 2019 and titled “2019 Year-End Tax Planning” by following this link.
Federal tax expert Mark Luscombe, JD, LL.M, CPA, Principal Federal Tax Analyst at Wolters Kluwer Tax & Accounting, is available to discuss issues involved in year-end tax planning.
PLEASE NOTE: The content of this alert and briefing are designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering legal, accounting, or other professional services.
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