2019 INCREASE IN CHARITABLE GIVING

♠ Posted by Marc J. Soss in 2019 charitable donations,charitable deduction,charitable giving,charity,donation,gift to charity,tax deduction

Americans gave nearly $450 billion to charity last year, which is one of the highest amounts ever recorded. This number comes as lawmakers have been looking for ways to expand tax breaks for donors amid the coronavirus pandemic. Charitable donations rose 2.4 percent in 2019 according to an annual survey by Giving USA. Individual giving accounted for about 69% of all donations, but the biggest jump came from the generosity of corporations. In 2019, businesses gave about $21 million, an increase of 11.4% from 2018. Also, giving by foundations reached a record high of $75.7 billion. "In March,...

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2020 RHODE ISLAND SALES TAX ON COMPUTER SOFTWARE AND STREAMING ENTERTAINMENT SERVICES

♠ Posted by Marc J. Soss in 2020 computer software tax,2020 entertainment sales tax,2020 sales tax increase,digital books sales tax,Rhode Island Sales Tax 2020

On June 24, 2020, the Governor of Rhode Island signed into law S2650 Substitute A, which expands the state’s sales tax base to computer software and specified digital products (streaming entertainment services), including digital audio-visual works, digital audio works, and digital books. The law also clarifies the definition of the “end-user” of a digital product in order to comply with the Streamlined Sales & Use Tax Agreement. The act is immediately effective. The law is designed to avoid sanctions by a state compact working toward sales tax harmonization. The tax is only on sales to...

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HOME OFFICE DEDUCTION UNDER COVID-19

♠ Posted by Marc J. Soss in 2017 TAX CUTS AND JOBS ACT,business deductions,COVID tax deductions,COVID-19 Tax Benefits,Home Office Deduction

The government ordered shut down resulting from the spread of Covid-19 has resulted in an increased number of employee’s working from home. Many of these employee’s have inquired whether they can deduct expenses for their newly created home offices. The general rule is that expenses that otherwise might be deductible are disallowed with respect to a “dwelling unit” used by a taxpayer as a residence. However, expenses are allowed for a home office if “a portion of the dwelling unit” is used regularly and exclusively: (i) as a taxpayer’s principal place for any trade or business; (ii) as a place...

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STAFFORD ACT TAX RELIEF

♠ Posted by Marc J. Soss in Expense reimbursement,President Trump,qualified disaster mitigation,reimbursement amount,Stafford Act

On February 13, 2020, President Trump invoked the Stafford Act, and opened the door to a range of possibilities in structuring “qualified disaster mitigation” payments to employees under IRC Section 139. These payments are advantageous to both employers and employees and not subject to income taxes or payroll taxes. Yet, an employer is still allowed to claim them as a deduction. Expense reimbursement that can be considered “reasonable and necessary” as a result of the “qualified disaster” cannot simply be income replacement, such as sick, vacation, etc. The expenses you are reimbursing need...

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IRS Notice 2020-18 Extends Tax Filing Deadline in 2020

♠ Posted by Marc J. Soss in 2019 Federal Income Tax Return extension,2020 IRS Tax Relief,Corona Virus Tax Relief,Extend Tax Deadline,IRS tax debt

IRS Notice 2020-18 has postponed this year's tax filing deadline to July 15, 2020. It is important to note that it extends only income tax and self-employment filings and payments and does not extend the time to file or pay employment taxes, estate taxes, gift taxes, excise taxes, information returns or any other federal tax or user fee filings. Taxpayers have until July 15, 2020, to pay income taxes without incurring penalties or interest, with no limit as to the amount of tax that may be deferred (previous IRS guidance, Notice 2020-17 limited the amount of tax that could be deferred). These...

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