The US tax system requires all its citizens and permanent residents to file tax returns based on worldwide income, regardless of where they live. As such, if a person lives overseas and files taxes in a foreign country, the person also needs to report the foreign income to the IRS by filing US taxes. In Read the full article…
President Biden recently signed the Inflation Reduction Act of 2022. Among many benefits, the bill aims to fight climate change, conserve energy, and reform legislation for the §45L Tax Credit and §179D Tax Deduction. The act significantly extended and expanded incentives for homebuilders and commercial building owners. The deduction and incentive can now be used Read the full article…
There are many factors in determining whether you are a California resident. However, if you’re looking to move out of the state, there are a few things to keep in mind. Do’s: • Either sell your California residence or make sure you can support the reason why you still own it for investment or rental Read the full article…
This is one of the articles in the KROST Quarterly Hospitality Issue, titled “A Win for the Restaurant Industry: The IRS Allows Double-Dipping” by May Sung, MSA. On August 4, 2021, the IRS released additional guidance regarding the employee retention tax credit. Notice 2021-49 provides guidance for employers that pay qualified wages after June 30, Read the full article…
For the tax year beginning in 2021, the IRS has implemented a new reporting requirement for partnerships, S corporations, and filers of Form 8865 to include Schedules K-2 (Partner’s Distributive Share Items – International) and Schedules K-3 (Partner’s Share of Income, Deductions, Credits, etc. – International) with their returns. What are Schedules K-2 and K-3 Read the full article…
This is one of the articles in the KROST Quarterly Hospitality Issue, titled “Tax Credit for Hiring New Employees” by Kimberly Hoang, CPA. The restaurant industry took a massive hit during the pandemic. With statewide mandates enforcing closures, layoffs were necessary. As vaccines have become widely available, the industry is slowly making its way back Read the full article…
Since lifetime gift exemption has drastically increased by the Tax Cuts and Jobs Act (TCJA), which went into effect in 2018, considerably fewer people are subject to estate tax filing. According to the TCJA, for 2022, decedents with an estate valued less than $12,060,000 are not required to file an estate tax return. However, to Read the full article…
LOS ANGELES, CA [July 28, 2022] — Los Angeles-based CPA Firm, KROST CPAs and Consultants announced Paren Knadjian as Principal of M&A and Capital Markets and Brad Pauley as Principal of Tax. Paren Knadjian has successfully completed over 200 M&A and Capital Markets transactions worth over $1 billion. Having been at the firm since 2017, Read the full article…
According to a watchdog report, the Internal Revenue Service struggles to disburse funds as 21.3 million paper tax returns wait to be processed. The backlog continues to surge, increasing by 1.3 million within the last 12 months despite continuous efforts to unclog the excess tax returns. More than 90% of taxpayers file returns electronically, but Read the full article…
In our last article in this series, we covered the different types of trusts that can be established. In this article, we’ll discuss uncommon trusts that can be utilized. Other Trusts That Can Be Established Blind Trust The trustees of a blind trust manage the assets in the trust without the beneficiaries’ knowledge. The beneficiaries Read the full article…
