Dabbs, Hickman, Hill & Cannon, LLP logo

Dabbs, Hickman, Hill & Cannon, LLP

 

319 South Main Street, PO Box 727

Statesboro, GA 30459

Phone: 912-764-6951

 

325 Tattnall Street

Savannah, GA 31401

Phone: 912-233-9004

February 2020

Big Income, Big Taxes

Insights and Tips

The IRS issued a final ruling explaining how to qualify for a real estate income safe harbor to receive the Qualified Business Income (QBI) deduction. You will need to make this safe harbor determination annually.


Pay Now
The alternative minimum tax (AMT), will see its exemption amount rise in 2020 to $72,900 and begin to phase out at $518,400 ($113,400 for married couples filing jointly and phasing out starting at $1,036,800). In 2019, the exemption was $71,700 and began to phase out at $510,300 ($111,700 for married couples and phasing out starting at $1,020,600). Also in 2020, you’ll pay Social Security tax on up to $137,700 of taxable income, up from $132,900.


Pay Later
Another provision, the federal estate tax, will be your heirs’ concern after you pass. The basic exclusion amount in 2020 is $11,580,000 per taxpayer (double if filing taxes jointly), after which estate taxes begin. That’s up slightly from 2019, when the exemption was $11,400,000.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.