5 Critical Tax Tips For Nonprofits in 2019

No one enjoys filing taxes, but it can be especially problematic for nonprofits. Many nonprofits focus on their cause so much that they neglect proper organization. As a result, they deal with disorganized records and systems, and a lack of clarity around tax issues....


For a business owner, taxes can be overwhelming and cumbersome. Tax deductions allow you to save thousands of dollars each year on your taxes and make tax filing a much more bearable experience. In this post, we'll list some of the tax deductions you can use to...

The Smart Business Owner’s List Of Tax Credits

One of the best ways to cut costs as a business owner is to take advantage of all the tax deductions and tax credits for which you're eligible. As a business owner, you're concerned with the bottom line--increasing your net profits. That probably means you spend most...

PRESS RELEASE: Cassidy Jakovickas, CPA of Fresno, CA Appointed to Intuit’s Accountant Council

Select Panel Advises on Products and Services that Accountants and Their Clients Want Most             FRESNO, CALIFORNIA – June 4, 2019 –Today, Intuit, Inc (Nasdaq: INTU) announced that Cassidy...

Beyond The Numbers: What We’ve Been Reading

Although our team loves using numbers and spreadsheets to help our clients make the best financial decisions, we also enjoy reading great books. Staying well read on both fiction and non-fiction books helps us hone our imagination and introduces us to new, sometimes...

Looking Back At April

It’s hard to believe that we’re at the end of April, but it’s true! This month, we helped our clients wrap up another great (and busy) tax season. There was, as always, a lot of paperwork, emails, and nail-biting involved in the days preceding April 15, but that’s all...

5 Last-Minute Tips For Filing Taxes in 2019

Well, April 15 is almost here, and the tax-related panic is thick. If you haven’t filed your 2018 tax paperwork and are rushing to get your taxes in by the deadline, we’ve decided to give you some last-minute tax advice that will hopefully help ease your stress....

An Introduction To Cybersecurity for Business Owners

Keeping your sensitive business and customer data secure has never been more critical. Whether you are a small business or a national corporation, you can't relax your defenses against those criminals seeking to take advantage of lazy cybersecurity policies. Virtually...

March News Roundup

Wow! It seems like we just started March and we’re already moving into April! As we move into the final stretch of tax season, we’re recapping this month’s news for you, just in case you missed it amid the tax-related hubbub. MBS Accountancy: November Review This...

4 Key Changes To Depreciation Under The TCJA

As the Tax Cuts and Job Act (TCJA) continues to be unraveled by tax professionals, it’s important to review the changes and their implications on business operations and tax strategies. In this article, we’ll highlight TCJA’s changes to first-year bonus depreciation,...

Surveying TCJA Changes To Real Estate

Reading Time: 2 minutes

In these final months of 2018, we are going to be reviewing the effects of the Tax Cuts and Job Act (TCJA) on your tax strategy and planning for next year. We briefly outlined some of the most important changes in January, May, and June and are just continuing our practice of keeping you informed about events and changes that impact your accounting and tax planning strategy. In this week’s post, we’ll summarize some changes in the TCJA that affect those in the real estate industry. The changes in the TCJA are generally applicable to the 2018 tax year and beyond – unless otherwise noted.

Summary of Important TCJA Changes To Real Estate

Like-Kind Exchanges

While the TCJA still applies to the exchange of real property, it now excludes exchanges of personal or intangible property. It’s worth noting that the exchange of a properties that are held primarily for sale is still unqualified as a like-kind exchange.

Carried Interest

After the TCJA, the holding periods for certain carried interests is extended to three years. In the near future, the IRS will be issuing regulations that will serve to clarify the tax laws regarding carried interest. Stay tuned!


Unifying the definitions for “restaurant”, “leasehold”, “retail” improvements under the single definition of “qualified improvement property”, the TCJA retained the existing recovery periods for nonresidential real property (39 years), residential rental property (27.5 years), and qualified improvements (15 years). The alternative depreciation period for residential property was shortened from 40 years to 30 years. Learn more about the changes to recovery periods on the IRS website.

Rehabilitation Credit (aka Historic Tax Credit)

Under the TCJA, the 20 percent that was previously taken in the building’s first year of service will now be taken over 5 years. The 10 percent rehabilitation credit for buildings constructed prior to 1936 was eliminated. Read more on the IRS website.

Qualified Business Income

Sole proprietorships, partnerships, trusts, and S-corporations may be able to claim a new deduction, formally referred to as the “qualified business income deduction.” Though you can read about the QBI deduction and eligibility specifics on the IRS website, essentially the deduction is limited to non-personal service businesses in specific fields. Though the real estate industry is not mentioned as in the list of generally approved fields, the personal service restriction does not apply to business owners with taxable income less than $157,500 (single taxpayers) or $315,000 (married joint filers). If your non-personal service income is above those thresholds, you may still be able to claim a full of limited 20% deduction (this is known as the wage and capital limit exception), though it depends on the amount of W-2 wages paid by your business and the UBIA of your qualifying property.



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