Tax Cuts and Jobs Act

Rethink transferring funds due to the “kiddie tax”

RETHINK TRANSFERRING FUNDS DUE TO THE “KIDDIE TAX” The ”kiddie tax” was first enacted by Congress as a means to keep parents or grandparents in high tax brackets from shielding their income. They did this by giving it to children within their family in lower tax brackets. Although this tax was a bit of a headache for some in prior years. It has since evolved due to the Tax Cuts and … Read more

Tax Deductions For Your Business

TAX DEDUCTIONS FOR YOUR BUSINESS Business have long relied on Section 179 to allow them to claim tax deductions for certain assets, rather than having depreciation deductions taken over time. Beginning in the 2019 tax year, Section 179 has been expanded by the Tax Cuts and Jobs Act (TCJA). Under the TCJA, the 100% bonus depreciation will also enable businesses to completely write-off qualified assets, such as property or equipment, that … Read more

Tax Reform in Action

TAX REFORM IN ACTION Now that we have completed our first tax season of the year and got to see the Tax Cuts and Jobs Act (TCJA) in action. Its time to look at some key highlights of the tax reform to be aware of. Estimated Tax Penalty Relief There is good news for self-employed taxpayers. The IRS announced that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income … Read more

2 crucial tax law changes in 2019

While most provisions of the Tax Cuts and Jobs Act (TCJA) have gone into effect last year and either apply through 2025 or are permanent. There are two significant tax changes under the act for 2019. Here’s a quick overview. 1. Deductions on medical expenses It is no secret that health care costs increase every year. Therefore, claiming any tax breaks related to health care is essential. However, there are requirements on how … Read more

Determine whether you should buy or sell investments before year-end

For investors, fall is an excellent time to review year-to-date gains and losses. Tax planning not only can it help you assess your financial health, but it also can help you determine whether to buy or sell investments before year-end to save taxes. This year, you also need to keep in mind the impact of the Tax Cuts and Jobs Act (TCJA). While the TCJA didn’t change long-term capital gains rates, … Read more

Cash v. Accrual: How to choose the right accounting method for you

The Tax Cuts and Jobs Act (TCJA) loosened the restrictions on the eligibility rules for using the cash method of accounting.  This made this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of accounting under the TCJA. If you have the option to use either … Read more

How the Tax Cuts and Jobs Act affects 2018 Estate Planning

The massive changes the Tax Cuts and Jobs Act (TCJA) made to income taxes have garnered the most attention.  However, the new law also made major changes to gift and estate taxes. While the TCJA didn’t repeal these taxes, it did significantly reduce the number of taxpayers who’ll be subject to them, at least for the next several years. Nevertheless, factoring taxes into your estate planning is still important. Exemption … Read more

Why Business Accountants of the Future Should Embrace Blockchain Technology

40,350 new accountants were hired in CPA firms, a figure that has been continually rising since the 2007 financial crisis, according to the Journal of Accountancy. This figure points to the growing need for financial experts in the country. Despite these numbers, there’s a huge technological gap when it comes to businesses adopting new technological trends like blockchain technology and how it’s set to impact the accounting industry. There’s no … Read more

Size of charitable deductions depends on many factors

Whether you’re claiming charitable deductions on your 2017 return or planning your donations for 2018, be sure you know how much you’re allowed to deduct. Your deduction depends on more than just the actual amount you donate. Type of gift One of the biggest factors affecting your deduction is what you give: Cash. You may deduct 100% gifts made by check, credit card or payroll deduction. Ordinary-income property. For stocks and bonds … Read more