EVENING SEMINAR
INVESTING IN ECONOMIC OPPORTUNITY ZONES
WEDNESDAY, JULY 24, 2019 • 5 PM – 6 PM
Presented by Jeffrey Cassin, Esq., Stephanie Edelstein, Esq., & Robert P. Russo CPA PC.
Moderated by James Melonichok
Month: June 2019
WEDNESDAY, JULY 24, 2019 • 5 PM – 6 PM
Presented by Jeffrey Cassin, Esq., Stephanie Edelstein, Esq., & Robert P. Russo CPA PC.
Moderated by James Melonichok
The preamble to the Section 199A final regulations contains the following new sentence:
… taxpayers should consider the appropriateness of treating a rental activity as a trade or business for purposes of section 199A where the taxpayer does not comply with the information return filing requirements under section 6041.1
Tax code Section 6041 requires a trade or business to issue 1099s to certain vendors.2
So, the IRS is saying that you “should consider the appropriateness” of NOT giving 1099s to vendors if you are asserting that your rental property qualifies as a trade or business for the Section 199A tax deduction.
If you’ve ever used—or provided services for—Uber, Lyft, Airbnb, Etsy, Rover, or TaskRabbit, then you’re a member of the sharing economy and it could affect your taxes. The good news is that if you’ve only used these services (and not provided them), then there’s no need to worry about the tax implications.
Small business owners are reminded that tax reform legislation lowered the backup withholding tax rate to 24 percent. In addition, the withholding rate that usually applies to bonuses and other supplemental wages was also lowered to 22 percent.