The DMJ Digest

Insights and musings from the desks of DMJ professionals.

The DMJ Digest

Insights and musings from the desks of DMJ professionals.

Tax Considerations for Ride-Share (Uber/Lyft) Drivers

Ride-sharing programs, primarily offered through Uber and Lyft, fall under the burgeoning new economic model known as the “shared economy” which is facilitated by GPS and user-friendly mobile phone application software. Ride-sharing as a transportation model which continues to grow more and more popular. Consequently, there are increasing numbers of ride share drivers who now need to consider the taxability of this income source.

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Observations of the New Tax Law – Taking the Best Advantage

Here are some observations on the new tax law. These are things that clients can do to better comply with or make the most of the new rules. Individuals: 1. “Bunching” Deductions: Under the new higher standard deduction, with more limits on itemized deductions, consider focusing your deductions in every other year. This doesn’t work for every client, but for some who’s new itemized deduction total will be near the standard deduction amount, this can be a good plan. For example, in even years, pay two years of charitables (to the extent you can), pay two years of home property taxes (one in January and one in December, for example), and/or schedule pricey medical or dental procedures. In the odd years, plan on claiming the standard deduction…

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Details of the Final Tax Bill – Business Tax Provisions

This bill is the largest tax bill since the huge Tax Reform Act of 1986, which introduced the passive activity loss and many other fundamental rules. The House and Senate could take up this bill as early as Tuesday 12/19/2017, with the President’s signature as early as later this week. With Senator Corker deciding to vote for this bill after all, and Senator Rubio’s concerns addressed, it now appears clear that the Senate has the votes to pass the conference bill. The House votes were always there. So there is a near 100% chance that this will happen, in this current form…

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Details of the Final Tax Bill – Individual Tax Provisions

This bill is the largest tax bill since the huge Tax Reform Act of 1986, which introduced the passive activity loss and many other fundamental rules. The House and Senate could take up this bill as early as Tuesday 12/19/2017, with the President’s signature as early as later this week. With Senator Corker deciding to vote for this bill after all, and Senator Rubio’s concerns addressed, it now appears clear that the Senate has the votes to pass the conference bill. The House votes were always there. So there is a near 100% chance that this will happen, in this current form…

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Standard Mileage Rates for 2018 Up from Rates for 2017

The Internal Revenue Service today issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2018, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 54.5 cents for every mile of business travel driven, up 1 cent from the rate for 2017…

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DMJ Greensboro Adds Tax Manager

DMJ & Co., PLLC (DMJ), a Top 300 North Carolina CPA firm, is pleased to announce that Andrew (Drew) Steel has joined the firm as a tax manager in DMJ’s Greensboro, NC office. Drew has more than ten years of public accounting experience working directly on individual...

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Limits on a Partner’s Loss Deductions

As you are probably aware, one of the advantages of doing business as a partnership (or S corporation), as opposed to as a regular corporation, is that the business losses “pass through” to the partners and can be deducted by them on their individual tax returns. Many taxpayers are not aware, however, that limitations apply on how much of a partner’s loss can be deducted.

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