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[…]
Tax Compliance on Luxury Taxes
Properties and homes that are only used for the enjoyment of the owners and guests that are not held out as a rental property may be subject to an additional tax on the value of the property – Impuestos de Lujo or luxury tax. The luxury tax is based on the declared value of theRead more about Tax Compliance on Luxury Taxes[…]
Tax Compliance on Costa Rican Rentals
In Costa Rica, residential rental activity is subject to taxation. Depending on the nature of the rental, it may be subject to sales tax, income tax or both. All short-term rentals are subject to sales and income taxes, The definition of a short-term rental is still a bit unclear from an amount of time orRead more about Tax Compliance on Costa Rican Rentals[…]
Don’t Neglect Estate Planning
The federal estate tax exemption now exceeds $11 million per person. Accordingly, few individuals or married couples will owe this tax. Nevertheless, there is more to successful wealth transfer than reducing or eliminating estate tax. Ideally, you’ll want your assets to pass to the desired recipients with a minimum of turmoil and expense.
More Gift in the Gift Tax
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.
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.
Read more about Beat Market Volatility with a Retirement Bucket Plan …
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.)