Tax Newsletter - January Special 2020 No images? Click here January 2020 Special Edition Tax Newsletter2020 Tax Season Begins January 27!The 2020 Tax Season officially opens January 27 when the IRS will begin accepting tax returns electronically. The IRS will continue to also accept the past years of 2017 and 2018 electronically as well. Reminder that filing electronically will expedite your tax refund quicker. Also, by informing the IRS of your bank account, a direct deposit could reach your bank account approximately two weeks before a check is received in your mailbox. MIR Taxes LLC hopes that these letters provide valuable tax information for you. Please feel free to contact us with any questions on any issue in our newsletters. Again, this newsletter is providing various tools and information to assist in compiling your data to prepare you prepare tax return when you speak with your tax professional ... or do-it yourself. A checklist has been compiled to assist taxpayers in this tedious task. Any questions or concerns? Contact MIR Taxes. If you wish for our firm to assist you in completing the process, we will send you an invite for a secured link that includes a tax organizer and uploading the documents. We have included this month a list of extensions voted by Congress (yes, somehow they did do some work) at the end of 2019. Read the extensions listed here to inquire what may apply to your tax situation. The IRS has installed an Improved Tax Withholding Estimator to help workers target the refund they want; shows how to fill out new 2020 W-4 on IRS webpage. Need a tax consultation? Please contact us if you wish to arrange for a time to speak concerning your tax situation. We will be returning to Brussels in early March for any in-person consultations in Brussels. A trip will be planned to Paris in either possibly early April or TBD. Please contact us if you wish to meet in Paris. Additional valuable information for the new tax season: Checklist for Tax Year 2019 tax preparation filing. IRS inflation adjustments: We are providing you with a chart as a courtesy of all of the IRS adjustments for the new tax season. Most of these adjustments are dependent on inflation or per Congressional acts. Click here to read which adjustments may affect your tax situation. The 2020 Tax Calendar has been compiled for your benefit as well. Please click here to download your calendar and mark the dates. Standard Mileage Rates: Beginning on Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: Read more about the Standard mileage guidance updated for the TCJA here. Virtual currency IRS updates: Other tax news article concerning the New guidance on virtual currency covering “hard forks” here. Tax Brackets & More: Review the 2020 Tax Brackets, Standard Deduction, and Other Changes here. REMINDER -- EARLY BIRD SPECIAL DISCOUNT Looking for savings in your tax preparation reporting costs in 2020? Be sure to contact us for a special discount. The offer expires on January 31, 2020. 2019 Tax Highlights Video - NEWPlease click here to view the NEW video concerning the tax highlights for 2019.Does U.S. property exchanged with foreign property qualify for like-kind exchange treatment?Clients have asked this question many times... here's a little information on Section 1031 property exchanges. Question: A client lives part of the year in the U.S. and part of the year in her retirement condo in Panama, where she expects to settle permanently in a few years. She owns several residential rental properties in the States and hopes to eventually sell them and purchase rental properties in Panama. We know that the TCJA no longer permits like-kind exchanges of machines, vehicles, etc. but still allows exchanges of real property. Will my client be able to do a like-kind exchange of her U.S. rental properties for residential rentals in Panama? Does it matter if the rentals are somewhat different, such as a single-family house exchanged for an apartment-style condo? Answer: Your client will not be able to have a tax-deferred “like-kind” exchange of her U.S. rental properties with rental properties in Panama. Under a special rule of §1031(h), real properties located in and outside of the U.S. are not property of a like-kind. Taxpayers ordinarily have many options for exchanges of §1250 real property. For instance, your client could apply like-kind exchange treatment to the exchange of her single-family residential rental units with apartment buildings, commercial property, and even unimproved land – as long as the relinquished and acquired properties were in the U.S. The TCJA did not modify the provision disallowing §1031 treatment for U.S. and foreign properties. If your client decides to “exchange” a U.S. and Panamanian property, perhaps through a broker, she will have to recognize gain or loss on the transaction. Generally, gain or loss will be the difference between the fair market value of the U.S. property and her adjusted basis in it, as if she had sold the property outright. International Tax News LinksUnited States: 2020 Tax Policy Outlook: Charting an Unfamiliar Path Forward United States: IRS: Student loan discharge United States: California's Governor Proposes Changes to Cannabis Regulation and Taxation United States: Still Considering A Switch From S To C Corporation Taxation?Convert currency & save money!Convert your currency wisely, efficiently, and economically by opening an account with MoneyCorp for free today! MoneyCorp can help both private and corporate clients, with a few payments that includes:
"Do I have to file?"Wondering if you are required to file because your income is too low? There are changes for the tax year so you could possibly do not have to file taxes to Uncle Sam this year. Click here.
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