Under the Tax Cuts and Jobs Act of 2017 (TCJA), equipment expensing permitted by Section 179 of the tax code was expanded. In 2018, your business can take a first-year deduction of up to $1 million worth of equipment purchases. You might buy, say, $400,000 worth of equipment and deduct $400,000 from your company’s profitsRead more about Year-End Business Tax Planning[…]
Year-End Tax Planning for Charitable Donations
The Tax Cuts and Jobs Act of 2017 was passed at the end of last year, and generally took effect in 2018. One feature of this legislation is an almost doubling of the standard deduction for most tax payers. Because of this steep increase, more taxpayers are likely to take the standard deduction for 2018,Read more about Year-End Tax Planning for Charitable Donations[…]
Bond Ladders May Hedge Interest Rate Hikes
Since rising rates tend to depress bond prices, the threat of rising interest rates may worry fixed income investors. Investors with this concern may want to consider constructing a bond ladder to hedge against this risk.
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Supreme Court Decision Affects Online Sellers
If your company makes sales to out-of-state buyers, do you need to collect state sales tax? Until recently, Supreme Court decisions from the 20th century said that would not necessarily be the case. Companies were not required to collect state sales tax for a state in which it had no “physical presence.” This put in-state retailers at a disadvantage to out-of-state sellers who didn’t collect sales tax.
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Life Insurance as the Ultimate Hedge
Many people think of life insurance as a product for family protection. The life of one or two breadwinners is insured; in case of an untimely death, the insurance payout can help with raising children and maintaining the current lifestyle.
A Grain of SALT in New IRS Notice
Taxpayers who itemize deductions on Schedule A of their tax return have in the past been able to deduct outlays for state and local income tax as well as property tax with no upper limit. (State and local sales tax may be deducted instead of income tax.) However, as of 2018, the Tax Cuts and Jobs Act of 2017 provides that no more than $10,000 of these state and local tax (SALT) expenses can be deducted on single or joint tax returns ($5,000 for married individuals filing separately).
The Verdict May Be In – GILTI
Much of the news relating to The Tax Cuts and Jobs Act (TCJA) is about domestic tax activities, such as limitations on state and local taxes, Sec 199 deduction and individual and corporate rates. However, little has been provided a little known but very critical parts in the international area. If you have a foreignRead more about The Verdict May Be In – GILTI[…]
Now the G.I. Bill is Forever
You probably know the G.I. Bill as a program designed to help military veterans receive college educations after they left the armed forces following World War II. What you may not know is that the G.I. Bill has endured, in various forms, until present times.
In fact, just last year the Harry W. Colmery Veterans Education Assistance Act of 2017 became law and modified the G.I. Bill. This latest version is sometimes called the “Forever G.I. Bill” because it removes time limits on receiving benefits for military personnel. It also authorizes the transfer of education benefits to spouses and children.
How the New Tax Law Affects 529 Plans
For many years, 529 college savings plans have offered a tax-favored way to save for higher education. These plans, officially called “qualified tuition programs,” take their nickname from the section of the Internal Revenue Code that authorizes them.
US Tax Reform – The New GILTI Tax Regime
In the last several months much has been written about the implications of the Tax Cuts and Jobs Act (TCJA). For owners of flowthrough entities (including sole proprietorships, partnerships, and S corporations) and indivduals, most of the commentary has focused on the new 20% deduction available for qualified business income (Sec. 199A). Of course, theRead more about US Tax Reform – The New GILTI Tax Regime[…]