TaxEsqBlog -by Ronald J. Cappuccio, J.D., LL.M.(Tax)

Cherry Hill West High School Career Day May 31, 2018 How to Become a Lawyer and What Lawyers Do How To Become A Lawyer: 1. You are required to obtain a bachelors degree. There is no such thing as “pre-law” although some schools have prelaw advisors. You can choose any major, but the key is to choose courses that require you to hone your skills in reading, and analysis and in writing. Since a lawyer’s job is to communicate with clients, courts, administrative agencies, and adversaries, the ability to write well and to communicate well orally are extremely important. Majors That Can Be Particularly Useful Are: A. Social sciences such as English, History, Political Science, Economics and Marketing. B. Business so long as you are required to do a lot of writing. C. Engineering or Science if you are contemplating Patent Law. 2. While you are in school, grades are exceptionally important. It is important to take a major that you are interested in and that y...

TCJA changes some rules for deducting pass-through business losses It’s not uncommon for businesses to sometimes generate tax losses. But the losses that can be deducted are limited by tax law in some situations. The Tax Cuts and Jobs Act (TCJA) further restricts the amount of losses that sole proprietors, partners, S corporation shareholders and, typically, limited liability company (LLC) members can currently deduct — beginning in 2018. This could negatively impact owners of start-ups and businesses facing adverse conditions. Before the TCJA Under pre-TCJA law, an individual taxpayer’s business losses could usually be fully deducted in the tax year when they arose unless : The passive activity loss (PAL) rules or some other provision of tax law limited that favorable outcome, or The business loss was so large that it exceeded taxable income from other sources, creating a net operating loss (NOL). After the TCJA The TCJA temporarily changes the rules for deducting an ind...

Can you deduct business travel when it’s combined with a vacation? At this time of year, a summer vacation is on many people’s minds. If you travel for business, combining a business trip with a vacation to offset some of the cost with a tax deduction can sound appealing. But tread carefully, or you might not be eligible for the deduction you’re expecting. General rules Business travel expenses are potentially deductible if the travel is within the United States and the expenses are “ ordinary and necessary ” and directly related to the business. (Foreign travel expenses may also be deductible, but stricter rules apply than are discussed here.) Currently, business owners and the self-employed are potentially eligible to deduct business travel expenses. Note: Under the Tax Cuts and Jobs Act, employees can no longer deduct such expenses. The potential deductions discussed below assume that you’re a business owner or self-employed. Business vs. pleasure Tr...

IRS Audit Techniques Guides provide clues to what may come up if your business is audited IRS examiners use Audit Techniques Guides (ATGs) to prepare for audits — and so can small business owners. Many ATGs target specific industries, such as construction. Others address issues that frequently arise in audits, such as executive compensation and fringe benefits. These publications can provide valuable insights into issues that might surface if your business is audited. What do ATGs cover? The IRS compiles information obtained from past examinations of taxpayers and publishes its findings in ATGs. Typically, these publications explain: The nature of the industry or issue, Accounting methods commonly used in an industry, Relevant audit examination techniques, Common and industry-specific compliance issues, Business practices, Industry terminology, and Sample interview questions. By using a specific ATG, an examiner may, for example, be able to reconcile discrepancies...