By Erika Diebert, CPA, Tax Manager
ASL Technology Group
In November 2017 the IRS was successful in federal court in its quest to gain access to bitcoin transactions. They now have the records for any transaction worth more than $20,000, including exchanging bitcoins for dollars, and sending or receiving bitcoins to/from another user. The time frame of available information covers transactions between 2013 and 2015. The IRS is expecting a large number of bitcoin users to pay taxes owed on unreported transactions. We would be surprised if this was the end of the quest for information by the IRS. With 2016 and 2017 being big years for bitcoin activity, and other successful cryptocurrencies being left out of the November 2017 court order, a lot of possible unreported transactions are not covered by this subpoena. (more…)
By Julie Malekhedayat, CPA
ASL Family Wealth & Individual Tax Planning Group
The most comprehensive tax law change in decades, commonly known as the Tax Cuts and Jobs Act, was signed into law on December 22, 2017. Although the corporate tax cut provisions were a highly publicized aspect of the bill, the numerous and dramatic changes to individual income tax rules will change the landscape for most taxpayers, beginning with the 2018 tax year. For some, the estate tax changes will have a material impact as well. However, as widespread as these changes are, almost all are set to last only seven years, through 2025, unless Congress acts to extend or revamp the laws before then. (more…)
By Abe Livchitz, CPA, Tax Senior Tax Manager
ASL Construction Group
In December, the Republican led Congress enacted the most wide ranging tax reform legislation since 1986. Provisions will impact both personal and business tax liabilities beginning in 2018. The legislation contains changes that can both help and hurt a contractor’s bottom line. Significant provisions include: (more…)
By Tingting Zhang, CPA, Tax Senior
ASL Tax Group
The U.S. Tax Court issued its final decision on captive insurance arrangements in Avrahami v. Commissioner, 149 T.C. No. 7 (2017). The Court held that the payments made by the Avrahamis to a micro-captive insurance company wholly-owned by Mrs. Avrahami are not insurance premiums for federal income tax purposes; therefore the deduction was not allowed for the federal income tax calculation. The captive insurance company’s elections under Section 831(b) to be treated as a small insurance company and under Section 953(d) to be taxed as a domestic corporation were also held to be invalid. This is the first Section 831(b) case that made it to trial and here is what you should know. (more…)
By Patrick Ngai, CPA, Audit Manager
ASL Renewable Energy Group
The U.S. Renewable Energy Market has been around for some time. According to the U.S. Energy Information Administration (EIA), renewable energy accounted for about 12% of total primary energy consumption and about 15% of the domestically produced electricity in the United States during 2016. Regardless of the current political climate, there is no denying that public interest in renewables is growing exponentially. (more…)
By Helena Bouron, CPA, Senior Audit Manager
ASL Nonprofit Group
When change occurs, there are always winners and losers. With the new tax reform signed into law recently, many articles have been written about the anticipated impact these changes will have on individuals and businesses. However, the impact tax reform may have on nonprofit organizations has received limited media focus. Reform may directly impact the charitable contributions of millions of taxpayers. With tax incentives to donate most likely diminished, nonprofits may struggle to find alternative ways to replace financial support. Let’s look at these major changes that could discourage charitable giving: (more…)
