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Author Archive for Salvatore Russo

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Final Regulation Addresses Tax Withholding on Certain Periodic Retirement and Annuity Payments

Final Regulation Addresses Tax Withholding on Certain Periodic Retirement and Annuity Payments The IRS has issued a final regulation addressing tax withholding on certain periodic retirement and annuity payments under Code Sec. 3405(a), to implement amendments made by the Tax Cuts and Jobs Act ( P.L. 115-97) (TCJA). The regulation affects payors of certain periodic payments, plan […]

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Final Regulations Clarify Deductions Allowed to Estates, Non-Grantor Trusts

Final Regulations Clarify Deductions Allowed to Estates, Non-Grantor Trusts The IRS has released final regulations clarifying that the following deductions allowed to an estate or non-grantor trust are not miscellaneous itemized deductions: costs paid or incurred in connection with the administration of an estate or non-grantor trust that would not have been incurred if the […]

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Final Regulations on Foreign Person’s Transfer of Partnership Interest

Final Regulations on Foreign Person’s Transfer of Partnership Interest The IRS has issued final regulations that address the gain or loss of certain foreign persons on the sale or exchange of an interest in a partnership that is engaged in a trade or business in the United States. The regulations provide guidance on determining the […]

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Final Regulations Released on Qualified ABLE Programs and Accounts

Final Regulations Released on Qualified ABLE Programs and Accounts The Treasury and IRS have released final regulations that provide guidance for Achieve a Better Living Experience (ABLE) programs under Code Sec. 529A to help eligible individuals pay for qualified disability expenses. The regulations provide guidance on: the requirements for ABLE programs, requirements for establishing and contributing to […]

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Social Security Wage Cap and Benefit Amounts Increase for 2021

Social Security Wage Cap and Benefit Amounts Increase for 2021 For 2021, the Social Security tax wage cap will be $142,800, and Social Security and Supplemental Security Income (SSI) benefits will increase by 1.3 percent. These changes reflect cost-of-living adjustments to account for inflation. 2021 Wage CapThe Federal Insurance Contributions Act (FICA) tax on wages […]

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2020-2021 Special Per Diem Rates Released

2020-2021 Special Per Diem Rates Released The IRS has released the 2020-2021 special per diem rates. Taxpayers use the per diem rates to substantiate the amount of ordinary and necessary business expenses incurred while traveling away from home. These special per diem rates include the special transportation industry meal and incidental expenses (M&IEs) rates, the […]

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Distributions by Terminated S Corporations Addressed in Final Regs

Distributions by Terminated S Corporations Addressed in Final Regs. Treasury has issued final and amended regulations on the rules for distributions made by terminated S corporations during the post-termination transition period (PTTP). These regulations apply after an S corporation has become a C corporation. Generally, the regulations are applicable as of the date they are […]

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Final Regs. Clarify Ratable Rehabilitation Credit is Still a Single Credit

Final Regs. Clarify Ratable Rehabilitation Credit is Still a Single Credit Final regulations clarify that the amount of the rehabilitation credit for a qualified rehabilitated building (QRB) is determined as a single credit in the year the QRB is placed in service. This is the case even though the credit is allocated ratably over a […]

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