B.A. Harris Blog

Tax Strategies: Reducing Taxable Residential Rental Income

For landlords of residential rental properties, one of the most powerful tools in tax planning is the appropriate timing of major expenditures. Coupled with an understanding as to whether those significant costs are fully deductible in the year they are incurred, or expensed over 5 to potentially 27.5 years, can play a significant factor in the decision-making process for property owners. Due to the sweeping changes in tax law with the passage of the Tax Cuts and Jobs Act of 2017 (TCJA) and the recent CARES Act, many of our clients have understandably been faced with confusion over this matter as there are elections for immediate expensing, accelerated depreciation methods, Section 179, Bonus depreciation, and the deduction for “qualified leasehold improvement property.


Changes to FORM 1099-MISC and New FORM 1099-NEC

Last used in 1982, and to alleviate confusion caused by the PATH Act, the IRS has reinstated Form 1099-NEC which will be used to report Nonemployee Compensation (NEC) for tax year 2020. The new 1099-NEC is used to report any payment of $600 or more to payees which was previously reported in Box 7 on Form 1099-MISC. While the 1099-NEC remains largely unchanged, the new form 1099-NEC will only be used for reporting NEC.


Surviving the CPA Exam

There are three components to becoming a CPA: education, examination, and experience. For most candidates, examination is the most intimidating part. The Uniform CPA Exam – standardized nationally – is comprised of four sections: Auditing and Attestation (AUD) Business Environment and Concepts (BEC) Financial Accounting and Reporting (FAR) Regulation (REG) Each exam is made up of multiple-choice questions and task-based simulations “SIMS”. BEC includes a written communication portion as well.


Idaho Tax Deduction for First-Time Home Buyers

With real estate costs across Idaho continuing to rise, the prospect of home ownership for many first-time homebuyers may seem more financially daunting than ever for some Gem State taxpayers. Thankfully, beginning in 2020, a new law has passed in an attempt to aid first-time homebuyers in the state of Idaho through potential tax benefits. Idaho Code section 63-3022V: Deduction For First-Time Home Buyers, allows individuals who open a First-Time Home Buyer Savings Account deductions on their Idaho return equal to their contributions into the account (maximum $15,000 a year for single filers, $30,000 for married couples), with a lifetime deduction limit of up to $100,000.


Families First Coronavirus Response Act: Paid Leave & Tax Implications for Small Business Owners

On March 18th, with Americans experiencing the economic impact of the COVID-19 virus, President Trump signed into law the Families First Coronavirus Response Act in an effort to ease the financial strain being dealt to working people across the country. Two key provisions of the bill (HR 6201) are: 1) the Emergency Family and Medical Leave Expansion Act (EFMLEA) which amends the Family and Medical Leave Act (FMLA) to allow paid leave for employees whose child care has been disrupted due to COVID-19, and 2) the Emergency Paid Sick Leave Act (EPSLA) which increases the number of employees with access to paid medical sick leave.

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