Sec. 1.1.13 & 1.1.16

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Charles Read is a CPA Member of the Bar United States Tax Court and Certified US Tax Court Litigators®. He is a member of the IRS Advisory Council and is the only US Tax Court Practioner to hold that position. He trained at the Tax Law Institute. He is a Small Business Self Employed and Wage and Investment Advisor to the IRS, and speaks to content found in IRS Publication 334. Professionally, businessman Read automates payroll systems for small businesses throughout the United States.


The following excerpts are reproduced from 2018 Publication 334 - Courtesy of the IRS

What's New for 2019

The following are some of the tax changes for 2019. For information on other changes, go to IRS.gov.
  • Standard mileage rate
    • For 2019, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 58 cents a mile.
  • Self-employment tax
    • The maximum net self-employment earnings subject to the social security part of the self-employment tax is $132,900 for 2019.
Reminders
  • Reportable transactions.
    • You must file Form 8886, Reportable Transaction Disclosure Statement, to report certain transactions. You may have to pay a penalty if you are required to file Form 8886 but do not do so. You also may have to pay interest and penalties on any reportable transaction understatements. Reportable transactions include:
      • 1. Transactions the same as or substantially similar to tax avoidance transactions identified by the IRS;
      • 2. Transactions offered to you under conditions of confidentiality for which you paid an advisor a minimum fee;
      • 3. Transactions for which you have, or a related party has, contractual protection against disallowance of the     tax benefits;
      • 4. Transactions that result in losses of at least $2 million in any single tax year ($50,000 if from certain foreign currency transactions) or $4 million in any combination of tax years; and
      • 5. Transactions the same or substantially similar to one of the types of transactions the IRS has identified as a transaction of interest.

Dispositions of Business Property

Introduction

If you dispose of business property, you may have a gain or loss that you report on Schedule 1 (Form 1040). However, in some cases you may have a gain that is not taxable or a loss that is not deductible. This chapter discusses whether you have a disposition, how to figure the gain or loss, and where to report the gain or loss.

  • Useful Items
    • You may want to see:
      • Publication 544
      • Sales and Other Dispositions of Assets
        • Form (and Instructions) 4797
  • Sales of Business Property
    • Sch D (Form 1040) Capital Gains and Losses

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