Archives for September 2019

Freelancers, others with side jobs in the gig economy may benefit from new online tool

WASHINGTON — The Internal Revenue Service said today that the new Tax Withholding Estimator tool includes a feature designed to make it easier for employees who also receive self-employment income to accurately estimate the right amount of tax to have taken out of their pay.

The Tax Withholding Estimator is an expanded, mobile-friendly online tool that replaced the Withholding Calculator, which since 2001 had offered workers an online method for checking their withholding. The old calculator lacked features geared to self-employed individuals; the new Tax Withholding Estimator made changes to address this important group.

The new tool offers self-employed individuals, workers, retirees and other taxpayers a more dynamic and user-friendly way to calculate the amount of income tax they want to have withheld from either wages or pension payments. With only a third of the year remaining, the IRS encourages these taxpayers – and others – to use the tool to take a Paycheck Checkup as soon as possible to make sure they are having the right amount of tax withheld and avoid a surprise when they file next year.

Among other things, the tool allows a user to enter any self-employment income in addition to wages or pensions. The user is then alerted that they may qualify for several special tax benefits, including the self-employment health insurance deduction or the deduction for contributions to a Simplified Employee Pension (SEP), Savings Incentive Match Plans for Employees (SIMPLE) or other qualified retirement plan. The tool automatically calculates the self-employment tax and the self-employment tax deduction and incorporates these into its overall tax liability estimate.

The enhancement for self-employed people is just one of many new features offered by the Tax Withholding Estimator. Others include:

Plain language throughout to improve taxpayer understanding.
The ability to target either a tax due amount close to zero or a refund amount.
A new progress tracker to help a user know how much more information they need to enter.
The ability to go back and forth through the steps, correct previous entries and skip questions that don’t apply.
Tips and links to help the user quickly determine if they qualify for various tax credits and deductions.
Automatic calculation of the taxable portion of any Social Security benefits.

The new Tax Withholding Estimator also makes it easier to enter wages and withholding for each job held as well as jobs held by a spouse. Users can separately enter pensions and other sources of income. At the end of the process, the tool makes specific withholding recommendations for each job and spouse’s job, including incorporating any self-employment income entered into the tool.

The tool then automatically links to the appropriate withholding form. For employees, the link goes to Form W-4, Employee’s Withholding Allowance Certificate (PDF), which they can then fill out and submit to their employer. Similarly, for pension recipients, the link is to Form W-4P, Withholding Certificate for Pension or Annuity Payments, which is submitted to the pension payor. Remember, don’t send these forms to the IRS.

The new tool can help anyone, including self-employed people, doing tax planning for the last few months of the year. The IRS urges everyone to do a Paycheck Checkup and review their withholding for 2019. This is especially important for anyone who faced an unexpected tax bill or a penalty when they filed earlier this year. It’s also a critical step for those who made withholding adjustments in 2018 or had a major life change, such as marriage, childbirth, adoption or buying a home.

Those most at risk of having too little tax withheld include those who itemized in the past but now take the increased standard deduction, as well as two wage earner households, employees with non-wage sources of income and those with complex tax situations.

Anyone who changes their withholding in the middle or latter part of this year should do another Paycheck Checkup in January of 2020. That will help ensure that they have the right amount of tax withheld, on a full-year basis, for all of 2020.

The IRS sponsors a free two-hour webinar on the Tax Withholding Estimator. The webinar will take place on Thursday, September 19 at 2 p.m. Eastern time. To sign up, visit the webinars page on IRS.gov.

House passes SAFE Banking Act

The House has passed The SAFE Banking Act in a major step towards providing state-legal cannabis businesses access to proper banking services and a safer atmosphere that comes with not having giant piles of money.

The bill passed late Wednesday afternoon by a vote of 321 to 103. Republicans were nearly split, with 91 voting in favor of cannabis banking and 102 against. One lone Democrat voted against the bill.

Its next stop in the Senate looks promising thanks to provisions that will help rekindle Mitch McConnell’s beloved Kentucky hemp industry with better banking services, and then it’s off to the White House.

On the eve of the historic vote, one of the most powerful members of Congress, and a newly minted champion of federal cannabis reform, House Judiciary Committee Jerry Nadlerput put his weight behind the vote.

Members of the Cannabis Caucus actually called Nadler’s MORE Act better than the SAFE Banking Act, but will be supporting both pieces of legislation.

Rep. Kendra Horn of the booming cannabis state of Oklahoma was the first person to speak on the SAFE Banking Act the day of the vote. A lot of the day’s discussions prior to the vote had been on the Debbie Smith Act and the current news cycle around President Donald Trump’s Ukraine call.

About 30 Minutes into the House’s day Horn took the podium. She called the bill an important piece of pragmatic legislation.

“The SAFE Banking Act is a bipartisan bill that confronts a problem that has arisen from the conflict between state and federal law and is currently endangering communities. As well as hindering small businesses from growing,” Horn said.

According to Horn, this past April Oklahomans spent more than $18 million on medical cannabis.

“This industry is bringing revenue to our state, helping small businesses, and helping those who suffer from physical ailments,” she said.

But that was just the pregame. Things would be dominated for the next few hours by the Ukraine scandal and the southern border. But the timing would end up almost perfect when it came time to start the cannabis banking debate.

Four minutes after 4:20 p.m. the house commenced debate on H.R. 1595. Everyone was really excited about how nice they were to each other compared to recent topics in Congress, like the whistleblower complaint resolution earlier in the day.

Rep. Ed Perlmutter of Colorado, the bills main sponsor, and Rep. Patrick McHenry of North Carolina would each control 20 minutes of time for the debate. But we use the term debate loosely. While there were some quick references to health concerns, the idea cartels wanted to launder their money in a heavily scrutinized industry, and an old school “Did you know these states are breaking the law?” Generally, things were pretty pro-pot or public safety on both sides of the aisle.

Perlmutter kicked things off saying he was proud to pass this public safety bill that was about accountability and respecting states’ rights. He also covered the most pragmatic aspects.

“We need these marijuana businesses and their employees to have access to checking accounts, lines of credit, payroll accounts, and more,” Perlmutter said.“This will promote transparency and accountability, and help law enforcement root out illegal transactions.”

Perlmutter then again stressed the most important thing was not allowing dispensaries and their employees to continue to be the targets of violent crime.

McHenry took the mic next saying he stood in opposition to the bill not because of the lack of goodwill going around, or willingness to engage, but said it’s just a fundamental difference in approaches. McHenry said he had a lot of respect for the way everyone on both sides was conducting themselves around an issue that could cause a lot of controversy.

“If we seek to give financial institutions certainty, we should deal with the listing of cannabis as a Schedule I substance. Not debating a solution for financial institutions to what is a much larger problem and a larger societal issue we must wrestle with,” McHenry said. “Should continue to be allowed to violate federal law? Does federal law need to be changed… when it comes to the scheduling of cannabis?”

McHenry went on to call The SAFE Banking act one of the biggest changes to U.S. drug policy in his lifetime. But he felt it was done with little debate and pointed to some questions he had for Financial Services Subcommittee Chairwoman Maxine Waters in March that were yet to be answered.

Waters followed McHenry. She spoke on the amount of effort everyone had put in over the years to get to the vote and stuck to the general public safety angle. Waters also noted on the ancillary services like plumbers and electricians that would benefit from getting a check and not piles of cash.

Some drug policy organizations had been wary of pushing cannabis banking through without wider conditions to support the communities hit the hardest by the War on Drugs. But Waters explained how the bill would promote diversity by giving minority and women-owned businesses access to the credit they need to compete.

The Drug Policy Alliance released a comment on the passage of the bill.

“We had no objections to the substance of the SAFE Banking bill,” said Queen Adesuyi, DPA’s Policy Coordinator at its Office of National Affairs, “However, DPA and allies from the civil rights community sent a letter of concern because we believe it is a mistake for the House to pass an incremental industry bill before passing a comprehensive bill that prioritizes equity and justice for the communities who have suffered the most under prohibition. We have long feared that passing SAFE Banking would undermine passage of the MORE Act by taking the momentum out of marijuana reform. The onus is now upon House Democrats to prove us wrong and pass the MORE Act.”

The debate would also feature the co-chairs of the Congressional Cannabis Caucus Rep. Earl Blumenauer and Rep. Barbara Lee, standing in support. Early in the debate, Perlmutter called Blumenauer the quarterback of all the various marijuana bills currently making their way through Congress.

Blumenauer would be one of the first to offer a statement following the victory.

“Today’s vote is historic,” Blumenauer said. “The House of Representatives took the most significant step thus far in addressing our outdated and out-of-touch federal cannabis laws. It never made any sense to deny state-legal cannabis businesses access to banking services. It not only seriously disadvantaged these businesses, but it also was an open invitation to theft, tax evasion, and money laundering. Congressmen Perlmutter and Heck have fought tirelessly to bring their bill to the floor, and I applaud Chairwoman Waters and House leadership for their support.”

Blumenauer also said states have outpaced the federal government on this issue, “and state-legal cannabis industries and their employees have suffered. There is much more to be done to end this senseless prohibition. This is just the beginning.”

NORML Political Director Justin Strekal was quick to weigh in on the historic vote.

“For the first time ever, a supermajority of the House voted affirmatively to recognize that the legalization and regulation of marijuana is a superior public policy to prohibition and criminalization,” Strekal said.

Strekal went on to give his hopes on the other half on Congress.

“Now we look to the Senate, where we are cautiously optimistic,” Strekal said. “Given the strong bipartisanship of the House vote, coupled with Senate Banking Chairman Mike Crapo’s recent pledge to hold a markup on this issue, we believe that Congress’s appetite to resolve this important issue has never been greater.”

The National Cannabis Industry Association has been working on the banking issue for the past six years and today’s vote marked one of their biggest victories ever.

“It’s incredibly gratifying to see this strong bipartisan showing of support in today’s House vote,” said NCIA Executive Director Aaron Smith after speaking on NCIA’s congressional partners. “We owe a great debt of gratitude to the bill sponsors, who have been working with us to move this issue forward long before anyone else thought it was worth the effort.”

Smith called on the Senate to act swiftly in getting the bill to the President’s desk. “This bipartisan legislation is vital to protecting public safety, fostering transparency, and leveling the playing field for small businesses in the growing number of states with successful cannabis programs,” Smith said.

The SAFE Banking Act’s companion bill in the Senate is S. 1200. It was introduced by Senators Cory Gardner and Jeff Merkley in April. NCIA noted that The Senate Banking Committee held a hearing on it in July and Banking Committee Chairman Mike Crapo announced cannabis banking legislation is very possible and being taken seriously.

Thanks to 420Intel for original content

Taxpayers should beware of property lien scam

With scam artists hard at work all year, taxpayers should watch for new versions of tax-related scams. One such scam involves fake property liens. It threatens taxpayers with a tax bill from a fictional government agency.

Here are some details about the property lien scam that will help taxpayers recognize it:

This scheme involves a letter threatening an IRS lien or levy.
The scammer mails the letter to a taxpayer.
The lien or levy is based on bogus overdue taxes owed to a non-existent agency.
The non-existent agencies might have a legitimate-sounding name like the “Bureau of Tax Enforcement.” There is no such agency.
This scam may also reference the IRS to confuse potential victims into thinking the letter is from a real agency.

For anyone who doesn’t owe taxes and has no reason to think they do should:

Contact the Treasury Inspector General for Tax Administration to report the letter. The taxpayer should use their IRS Impersonation Scam Reporting web page. When reporting the scam, they should include the key words “IRS Lien.”
Scan a document received as a letter or fax, and send it to phishing@irs.gov.
Report it to the Federal Trade Commission using the FTC Complaint Assistant on FTC.gov.
Report it also to the FBI’s Internet Crime Complaint Center, known simply as IC3.

Taxpayers who do owe tax or think they might owe should:

Review their tax account information and payment options at IRS.gov. Reviewing tax account information online will show the taxpayer if they indeed owe the IRS and how much. This is the fastest way to get this information.
Call the IRS at 800-829-1040 to confirm the notice if they’re still not sure they owe.

You have probably heard of these guys, “The Fed”

They are all over the news periodically. Politicians heap accolades or spit-fire at them depending on whether they like the results of The Fed’s actions… but what do they do?

A Brief History

The Federal Reserve System (what we normally just call “The Fed”) is the central bank of the United States and was created by The Federal Reserve Act and passed by Congress in 1913. Before the centralized banking system there were financial panics, or what we commonly hear called “bank runs”, meaning, for some reason or confluence of factors, the customers of a bank suddenly feel their money is not safe and attempt to take all it out of that bank. Now, if this were just a customer or two, the bank wouldn’t be hurt. But when enough customers decide to take out their money all at once, the bank can go under. The business of banking can be complicated, but basically a bank “holds” your money and hopes that you don’t take it all out at once. While they are holding it, they can be using it to make money for the bank. Fun fact: Banks do not have as much cash on hand as customers have deposited.

The Federal Reserve System was created to prevent these kinds of financial panics, but also to do things like set monetary policy, and ensure the stability of prices and promote full employment. Since The Fed was created its mandates have, of course, grown and changed, but one thing that hasn’t changed is its insulation from political or private influence. By being decentralized and having 12 Reserve Banks across the nation acting somewhat independently, and also the Chair of the Fed being appointed by the President of the United States but not beholden to that office or to Congress (though they do have to report to Congress) The Fed stays independent and can do its work without fear of retaliation.

But What Does It Do Again?

Probably the thing you hear about most often is The Fed setting what is sometimes called the Federal interest rate, but is actually called the Federal Funds rate. With the creation of The Fed came the mandate that banks must keep a certain amount of cash on hand. That amount is a percentage of what their depositors have put in their bank. These funds must be kept in a Federal Deposit account in one of those 12 Federal Reserve banks. What a bank has in their Federal Reserve bank account over their required percentage they can lend to one another. The percentage at which they can lend to one another is set by, viola, The Fed and that is the Federal Funds rate. (Why they need to lend each other money is a whole other post we can discuss on a different day).

And, So…?

It’s a sort of domino effect. While the Fed can’t tell a bank “you must lend at this exact percentage rate” it can adjust the money supply (the actual amount of dollars and coins that are floating around out there) and so this puts a little pressure on the banks to adhere to the rate The Fed has set. You can’t lend what doesn’t exist and if there will be less actual cash available chances are you are going to hold on to what you’ve got. And while the Federal Funds rate does not directly affect businesses and consumers it does influence the percentage rate at which banks are willing to lend to their customers.

And… So…?

What percentage businesses can borrow money for (and the amount of interest they will eventually have to pay back to the bank, thus lowering their profits) determines, in part, whether they are willing to do job creating things, such as, creating a new product line, opening a new retail store, building a factory, or adding another shift.

Also, the Federal Funds rate has an effect on inflation – that is the amount that prices of things rise over a period of time (when prices go down that is called deflation and can be equally bad if out of control – again a post for another time). If inflation is high that means your dollars don’t go as far as they used to, boo. If inflation is low, more bang for your buck! Yeah! However, ups and downs have a chilling effect on both business and personal economic decisions. Just as a business has to feel secure to know if they can safely open a new store, you need to know that you are going to have a job at that store going forward in order to buy that new car you need.

But of course…

As we know, especially if you are old enough to have lived through the Great Recession of about a decade ago, even The Fed can’t totally control the economy. The Great Recession was caused by a number of bad actors and bad policies put in place by a number of organizations both private and public and even though The Fed did lower the Federal Funds rate when it saw unemployment rising, the crisis was already snowballing. After the onset of the crisis The Fed, partly because of its independence and decentralization from government and business influence, was able to adequately prop up some financial institutions. Whether the Fed would be able to avert another such crisis is yet to be seen. Bad actors and bad policies are somewhat like whack-a-mole – they pop up where you can’t believe and then slip away before you can whack them – but they still left a hole in the (economy) ground!

In The Grand Scheme

All in all, the United States economy is stable relative to many other countries which have experienced terrible financial crises, such as Argentina and Greece which have had punishing inflation rates in the past. And though no one can foresee the future, the Federal Reserve System has been able to help hold our economy together and prevent the kind of collapsing inflation rates seen by other countries even in the worst of time thus far.

The filing deadline for extension filers is almost here

It’s almost here…the filing deadline for taxpayers who requested an extension to file their 2018 tax return. This year’s deadline is Tuesday, October 15.

Even though time before the extension deadline is dwindling, there’s still time for taxpayers to file a complete and accurate return. Taxpayers should remember they don’t have to wait until October 15 to file. They can file whenever they are ready.

Taxpayers who did not request an extension and have yet to file a 2018 tax return can generally avoid additional penalties and interest by filing the return as soon as possible and paying the amount owed.

Here are a few tips and reminders for taxpayers who have not yet filed:

Use IRS Free File or other electronic filing options.
Taxpayers can file their tax return electronically for free through IRS Free File. The program is available on IRS.gov through Oct. 15. Filing electronically is easy, safe and the most accurate way to file taxes. Other electronic filing options include using a free tax return preparation site, commercial software or an authorized e-file provider.

Taxpayers getting a refund should use Direct Deposit.
The fastest way for taxpayers to get their refund is to file electronically and use direct deposit.

There are online payment options.
Taxpayers with extensions should file their tax returns by Oct. 15 and, if they owe, pay as much as possible to reduce interest and penalties. IRS Direct Pay allows individuals to securely pay from their checking or savings accounts. These taxpayers can consider a payment plan, which allows them to pay over time. For other payment options, taxpayers can visit the Paying Your Taxes page on IRS.gov.

There’s more time for the military.
Military members and those serving in a combat zone generally get more time to file. These taxpayers usually have until at least 180 days after they leave the combat zone to file returns and pay any taxes due.

There’s also more time in certain disaster areas.
People who have a valid extension and are in – or affected by – a federally-declared disaster may be allowed more time to file.

Keep a copy of tax return.
Taxpayers should keep a copy of their tax return and all supporting documents for at least three years.

Taxpayers can view their account information.
Individual taxpayers can go to IRS.gov/account and login to:

View their balance.
See their payment history.
Pay their taxes.
Access tax records through Get Transcript.

Here’s what happens after a disaster that leads to relief for affected taxpayers

Disasters can strike without warning, causing damage and destruction. Before the IRS can authorize tax relief, the president must declare a federal disaster. Here’s a rundown of tax-related things that usually happen after a disaster:

The IRS gives taxpayers more time to file and pay.
Taxpayers located in a disaster area may have extra time to file returns and pay taxes. The IRS’s Twitter account and disaster assistance page provide disaster updates and links to resources. Taxpayers can also call the IRS’s disaster line at 866-532-5227.

Taxpayers can qualify for a casualty loss tax deduction.
People who have damaged or lost property due to a federally declared disaster may qualify to claim a casualty loss deduction. They can claim this on their current or prior-year tax return. This may result in a larger refund. The IRS will quickly process these returns.

People can file for a disaster loan or grant.
The Small Business Administration offers financial help to business owners, homeowners and renters. This help is for those in a federally declared disaster area. To qualify, a taxpayer must have filed all required tax returns.

Taxpayers might need a tax return transcript.
People affected by a disaster can get copies or transcripts of past tax returns for free by submitting one of two forms. These are Form 4506, Request for Copy of Tax Return, and Form 4506-T, Request for Transcript of Tax Return. The taxpayer should state on the form the request is related to a disaster. They should also list the state and type of event. This whelps speed up the process.

People should submit a change of address.
After a disaster, people might need to temporarily relocate. Those who move should notify the IRS know about their new address by submitting Form 8822, Change of Address.

The IRS encourages affected taxpayers to review all federal disaster relief by visiting disasterassistance.gov.

More information:
Reconstructing records after a disaster
Tax relief in disaster situations
Around the nation
FAQs for disaster victims
Publication 2194, Disaster Resource Guide for Individuals and Businesses
Publication 584, Casualty, Disaster, and Theft Loss Workbook
Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook
Publication 547, Casualties, Disasters and Thefts
Publication 5307, Tax Reform Basics for Individuals and Families

Tax preparers should take another look at the Taxes-Security-Together Checklist

Data thieves continue doing their dirty work. Despite major progress against them, their threats continue to put tax pros and their clients at risk. To help combat this, the IRS and its Security Summit partners created a new Taxes-Security-Together Checklist.

Following this checklist is a great starting point for tax professionals who want to protect their offices, computers and data.

Here’s are the highlights of the recent tax tip series spotlighting the Taxes-Security-Together Checklist.

Create a written security plan to protect client data. In fact, the law requires tax pros to make this plan. This plan can help save valuable time and protect tax professionals and taxpayers after a data theft.
Deploy the “Security Six” protections. These are basic protections that everyone – especially tax professionals handling sensitive data – should use.
Tax professionals should educate their employees to be on the lookout for phishing emails and about steps they can take to protect client data. Scam emails are still the most common tactic used by cybercriminals.
Tax professionals and their employees should learn the tell-tale signs that their office may have experienced a data theft.
Review their business’ security measures and create a data theft recovery plan. One of the first things a preparer should do after a theft is contact the IRS.

Making Ends Meet

You may wonder why it seems so much more difficult to make ends meet these days than it was in previous decades. Well, in short, because it is. Although earnings have risen they haven’t kept up with the cost of everyday necessities.

If you have been anywhere near a television, radio, computer, or newspaper in the last couple of months you know that there is a housing crisis in California, and every other metropolitan area of the United States, in fact. According to a CNBC report home prices have rises 73% (adjusted for inflation) from 1960 to 2000. Even rent has gone up, 43% (adjusted for inflation) from 1960 to 2000.

Let’s look at some household items you might need now as then.

Price of a gallon of milk – 1960 $.49; 2019 $3.50

Loaf of bread – 1960 $.22; 2019 $5.00 – in 1960’s dollars, adjusted for inflation, that price of bread would be $1.89

$20 worth of groceries – 1960 $20.00; 2019 $171.74

Gallon of gas – 1960 $.31; 2019 $2.65

A new car – 1960 $2,752.00; 2019 $36,843.00 – in 1960’s dollars, adjusted for inflation, that price of that car would be $23,642.00

Single Family House – 1960 $11,900.00; 2019 $250,000.00 – in 1960’s dollars, adjusted for inflation, that price of a single family home would be $102,231.00

Median Household wage – 1961 $5,700.00; 2019 $63,688.00

More Ends to Make Meet

While it may seem as if we are better off now wage-wise the above comparisons may not illuminate our wage stagnation in this country of the last 15 years. Not only are normal household expenses more expensive, there are just more of them! Television was three networks and a couple of local channels if you had the reception to get them, and in black and white for most of the 60s, but it was free.

Four out of five households on average had a telephone line in their house. Emphasis on “a”. There was no such thing as having multiple phones, or one for each family member including children. Compare that to your cell phone service now – one (expensive) phone for each family member, which you are probably financing, and several hundred dollars a month for the service.

Internet… ah, what was that? Of course, there wasn’t any back then. But can you imagine not having access to WiFi now?

More Americans were covered by health insurance through their job back then than now, so less out of pocket for premiums and deductibles.

Most of us didn’t have credit card debt. Sure, in the 1950s some people had a Diner’s Club card, which was impressive back then. But folks did not carry debt month over month. It wasn’t until the 1970s (see our article on Credit Bureaus for a brief history of credit) that carrying over debt became common.

Retirement was probably funded, at least in part, by your job. Now you are lucky to have an employer matched 401(k) contribution. We Americans are now working longer into our retirement than ever before.

Feeling the Pinch

So, if you have been feeling the pinch and feeling bad and thinking it was you, don’t. We as a society are all in the same boat, higher cost of living, shrinking wages, and increasing number of necessities, and some ‘wants’ that look like necessities. There may be not much to be done about these circumstances but you can do something that may be considered “old fashioned” but very ‘60s – budget. Living within your means may not be as fun as getting those cool shoes by charging them, but it can provide you with peace of mind over the long haul.

Here are disaster resources taxpayers can check out now to help them later

Natural disasters can – and do – happen at any time. Whether it’s a hurricane, fire, flood, earthquake or tornado, there are things people can do to prepare in advance of a disaster.

Here are several links that can help taxpayers before and after a disaster:

Reconstructing records after a disaster; IRS provides tips to help taxpayers
This fact sheet helps people who are facing the challenge of reconstructing their financial records after a disaster. It covers how to properly document a tax-deductible loss.

Tax relief in disaster situations
This page features links to disaster resources. They walk taxpayers through information that will help them after a disaster. This page also links to local news releases and frequently asked questions.

Around the nation
This page highlights news specific to local areas. This includes disaster relief and tax provisions that affect certain states.

FAQs for disaster victims
Users will find links to several different pages of FAQs. Each set of FAQs is about a specific topic to help people after a disaster.

Publication 2194, Disaster Resource Guide for Individuals and Businesses
This resource guide provides information for individuals and businesses affected by a disaster. It also covers the help available for disaster victims. The guide can help taxpayers claim unreimbursed casualty losses on property that was damaged or destroyed.

Publication 584, Casualty, Disaster, and Theft Loss Workbook
This workbook helps individual taxpayers figure the loss on their property because of a disaster, casualty or theft.

Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook
This workbook helps businesses figure the loss on business property because of a disaster, casualty or theft.Publication 547, Casualties, Disasters and Thefts
This publication explains the tax treatment of casualties, thefts and losses

Treasury, IRS release final and proposed regulations on new 100% depreciation

WASHINGTON — The Treasury Department and the Internal Revenue Service today released final regulations and additional proposed regulations under section 168(k) of the Internal Revenue Code on the new 100% additional first year depreciation deduction that allows businesses to write off most depreciable business assets in the year they are placed in service by the business.

The regulations released today on IRS.gov have been submitted to the Federal Register and may vary slightly from the published documents due to minor editorial changes. The documents published in the Federal Register will be the official documents.

The final regulations finalize the proposed regulations issued in August 2018 which implement several provisions included in the Tax Cuts and Jobs Act (TCJA). The proposed regulations contain new provisions not addressed previously.

The 100% additional first year depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.

The deduction applies to qualifying property acquired and placed in service after Sept. 27, 2017. The final regulations provide clarifying guidance on the requirements that must be met for property to qualify for the deduction, including used property. The final regulations also provide rules for qualified film, television and live theatrical productions.

Additionally, in the proposed regulations, the Treasury Department and IRS propose rules regarding (i) certain property not eligible for the additional first year depreciation deduction, (ii) a de minimis use rule for determining whether a taxpayer previously used property; (iii) components acquired after Sept. 27, 2017, of larger property for which construction began before Sept. 28, 2017; and (iv) other aspects not dealt with in the previous August 2018 proposed regulations. The proposed regulations also withdraw and repropose rules regarding application of the used property acquisition requirements (i) to consolidated groups, and (ii) to a series of related transactions.

For details on claiming the deduction or electing out of claiming it, see the final regulations or the instructions to Form 4562, Depreciation and Amortization (Including Information on Listed Property). For tax years that include Sept. 28, 2017, see Rev. Proc. 2019-33 for further information about making a late election or revoking an election.

Taxpayers who elect out of the 100% depreciation deduction must do so on a timely-filed return. Those who have already timely filed their 2018 return and did not elect out but still wish to do so have six months from the original deadline, without an extension, to file an amended return.