The Tax Cuts and Jobs Act (TCJA) of 2017 lowered corporate tax rates from a graduated schedule that reached 35% to a 21% flat rate. However, many business expenses are no longer tax deductible. That list includes all outlays that might be considered entertainment or recreation.

When couples divorce, financial negotiations often involve alimony. The tax rules regarding alimony were dramatically changed by the Tax Cuts and Jobs Act (TCJA) of 2017, but existing agreements have been grandfathered. In addition, the old rules remain in effect for divorce and separation agreements executed during 2018. Beginning next year, the rules will change,Read more about New Tax Law Will Change Divorce Tactics[…]

Many of you when you engage a professional to manage your property or otherwise perform services for you, you assume that they are legal to work in Costa Rica. But, the truth is that many providers are not legal and do not operate as such. You must be careful when using these kinds of providers.Read more about Using Illegal Providers[…]

Do you rent your property? Do you use a property manager? If yes, then this information is for you. You may be thousands of miles from your property location and you are reliant on a person who is supposed to take care of your property. Do you trust them? How do you know they areRead more about Property Managers – Tricks[…]

For those who are building a rental property, the objective when completed is to rent the unit and at the end of the year have a cash flow profit. Of course, you want to hold on to this cash flow as much as possible. So, how can we do that in an tax efficient way?Read more about Cost Segregation Studies – Why Should I Have One?[…]

Some of you who have rental property and are using only a property management company that purported offers as “in-house” accounting services should be advised that is not an ideal practice. You are entrusting a group with your investment and with funds to manage this. Too many times in Costa Rica, there are property managersRead more about Difference Between Property Managers and Outside CPA[…]

The IRS recently announced that the OVDP (Offshore Voluntary Disclosure Program) is coming to an end in September 2018. This means that if you wish to submit to this amnesty program, that you must file by then. Other programs, such as the Streamlined Offshore and Onshore and Delinquent Submissions will continue at this point. However,Read more about US Tax Amnesty Programs – Update[…]

As some of you might know, there is a high probability that their will be major tax reform in Costa Rica. This is a summary of some of the significant items that will affect you and how you do business in Costa Rica. Moving from a Sales Tax Based System to a Value Added TaxRead more about Costa Rican Tax Reform – Its Coming Faster Than You Think[…]

Many small businesses are passthrough entities, including S corporations, partnerships, sole proprietorships, LLCs, and LLPs. The label indicates that all business earnings are passed through to the owners’ personal income tax returns. Thus, they avoid the corporate income tax. The Tax Cuts and Jobs Act of 2017 contains a new tax benefit for pass-throughs. ThisRead more about New Tax Deduction for Pass-Through Entities[…]

A key component of the Tax Cuts and Jobs Act of 2017 is the expansion of the standard deduction for U.S. taxpayers. In 2018 standard deductions are $24,000 (married couples filing jointly), $18,000 (heads of household), and $12,000 (all others). These amounts are almost double the respective standard deductions in 2017. However, personal exemptions wereRead more about U.S. Tax Reform Makes Home Equity Debt Less Attractive[…]