The Tax Cuts and Jobs Act of 2017 increased the federal estate tax exemption to $11.18 million for 2018. That’s per person, so the combined exemption for a married couple can be as much as $22,360,000 worth of assets this year.
Author: relanetAdmin
Beat Market Volatility with a Retirement Bucket Plan
We have seen an increase in market volatility in early 2018. A steep pullback in stocks could be good news for working people who are building retirement funds, but those approaching or in retirement might be hurt.
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IRS Okays Home Equity Deductions
The Tax Cuts and Jobs Act of 2017 affected the tax deduction for interest paid on home equity debt as of 2018. Under prior law, you could deduct interest on up to $100,000 of home equity debt, no matter how you used the money. The old rule is scheduled to return in 2026.
The bad news is that you now cannot deduct interest on home equity loans or home equity lines of credit if you use the money for college bills, medical expenses, paying down credit card debt, and so on. The good news is that the IRS has announced “Interest on Home Equity Loans Often Still Deductible Under New Law.” (See IRS Information Release IR-2018-32.)
No Tax Deductions for Business Entertaining
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.
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New Tax Law Will Change Divorce Tactics
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, and the roles will be reversed.
Using Illegal Providers
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[…]
Property Managers – Tricks
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[…]
Cost Segregation Studies – Why Should I Have One?
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?[…]
Difference Between Property Managers and Outside CPA
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[…]
US Tax Amnesty Programs – Update
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[…]