New tax law

According to a webinar recently given to CLSA members by a tax accountant, the answer is yes.

Is there a link available to that webinar?

Would someone be able to explain more.

My accountant said I can take advantage of the break given to pass through LLCs. Is this the same thing or something different?

Is this the same thing or something different?

Same thing.?ÿ A recording of the CLSA webinar can be found here.

?ÿ

Thanks Jim.

Thanks Jim, very informative.?ÿ I'm firing my last tax guy.

First, we must be profit making enterprises.

Thank You

Well according to my accountant we are, 20% as well as the $12000 standard deduction.

I just hired this accounting firm to do my taxes for 2018. They also reviewed and amended my tax returns from the last 3 years and were able to get me a rather large tax refund.

Just attended a CPA presentation at PLSO (Oregon) last Friday. Even CPA's are not 100% sure of this, some say it was an over sight, others say if they had intended surveyors to be included they would have. Audits on the 2017 tax year will be about three years from now, so that is likely when tax courts will rule if by chance it wasn't an over sight to include surveyors.

Your risk tolerance will decide which camp you fall in.

SHG

I don't have the statute in front of me, but my recollection is that the language is not ambiguous with regard to surveyors.?ÿ The legislative intent might not be comprehensively reflected in the language, but if Congress amends the law or the IRS interprets it to exclude surveyors, the worst that can happen is I'll have to pay back taxes.?ÿ They can't assess penalties when you follow the letter of the law.

Actually it is ambiguous unless you assume that "engineers and architects" includes land surveyors. Rather that was an over sight or the intent remains to be seen. Reasonably one might think that was just an over sight, BUT my understanding is there is no official guidance on that. Agree that worst is back taxes.

SHG

Posted by: Shelby H. Griggs PLS

Just attended a CPA presentation at PLSO (Oregon) last Friday. Even CPA's are not 100% sure of this, some say it was an over sight, others say if they had intended surveyors to be included they would have. Audits on the 2017 tax year will be about three years from now, so that is likely when tax courts will rule if by chance it wasn't an over sight to include surveyors.

Your risk tolerance will decide which camp you fall in.

SHG

I was in the room with Shelby. He is accurately reporting what the CPA said. It was the main topic of the presentation.?ÿ His opinion was that Surveyors are included, and he was quite willing to prepare client returns on that assumption. He was not willing to guarantee that a future audit would not prove him wrong.

So if you do take the deduction I suggest that you bank the refund for a few years.?ÿ

The IRS released rules today that strengthen the interpretation that surveyors will be allowed to take the deduction.?ÿ There are two key points:

1.?ÿ The legislation specifically disallows the deduction for "any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners."?ÿ It's conceivable that a land surveyor could be categorized as such.

2.?ÿ The legislation specifically names engineers and architects as allowed, but surveyors aren't mentioned, which meant that surveyors might be lumped into the category of consulting, which is specifically disallowed.

However, today's 247-page ruling notice includes the following that addresses item 1:

If Congressional intent was to exclude all service businesses, Congress clearly could have drafted such a rule. Accordingly, the final regulations retain the proposed rule limiting the meaning of the reputation or skill clause to fact patterns in which an individual or RPE is engaged in the trade or business of receiving income from endorsements, the licensing of an individualƒ??s likeness or features, and appearance fees.

It also addresses item 2:

The performance of services in the field of consulting does not include the performance of services other than advice and counsel

I think we're good.

Good thing NSPS was on top of this.....

I was told by an accountant that a I could not take it because I do not have employees.

Ed

I was told by an accountant that a I could not take it because I do not have employees.

I recommend finding another accountant.

Posted by: Jim Frame

I think we're good.

I guess we will find out in 2020 or 2021 when the first audits of 2017 taxes happen.

I think the stance to go with is assume we are covered, BUT don't be shocked if back taxes are due in a few years.