New Tax Law Brings Big Changes for Individual Taxpayers
Posted December 22, 2017 / No comments
The reconciled tax reform bill, commonly called the “Tax Cuts and Jobs Act” (TCJA), is the most sweeping federal tax legislation in more than three decades. While many of the new law’s provisions affect businesses, it also includes significant changes for individual taxpayers, most of which take effect for 2018 and expire after 2025. Here
Read MoreTax Law Signed into Law – How Pass-Through Limitations Work
Posted December 21, 2017 / No comments
The sweeping tax reform bill has finally passed both houses of Congress and will soon make its way to the President for his expected signature. At the last minute, a number of provisions were removed from the bill, including a provision allowing Section 529 account funds to be used for home schooling expenses. Meanwhile, another
Read MoreCongress passes biggest tax bill since 1986
Posted December 21, 2017 / No comments
On December 20, the House passed the reconciled tax reform bill, commonly called the “Tax Cuts and Jobs Act of 2017” (TCJA), which the Senate had passed the previous day. It’s the most sweeping tax legislation since the Tax Reform Act of 1986. The bill makes small reductions to income tax rates for most individual
Read MoreProposed changes to the Federal Income Tax
Posted December 19, 2017 / No comments
As you know, both houses of the US Congress are considering proposed changes to the Federal Income Tax. While nothing is final, one change under consideration would limit the deduction for local property taxes to $10,000 per year. We bring this to your attention so that you (and your colleagues) can discuss it with your
Read MoreNew Tax Law Process
Posted December 12, 2017 / No comments
You may wonder why it’s taking so long for Congress to pass a new tax law. Right now, there are two versions of a bill, one in the House and one in the Senate. Both chambers need to agree on a single bill. The compromise version will then be voted on by the House and
Read MoreWhat Happens Next with Tax Reform?
Posted December 6, 2017 / No comments
On Dec. 2, the U.S. Senate passed the Tax Cuts and Jobs Act in a 51-49 vote. Many changes were made to the bill in order to win over the Senators who opposed parts of it, including a provision to keep the current individual alternative minimum tax (AMT), but with a higher exemption threshold. (The
Read MoreConsignor Loan Not Debt Forgiveness
Posted November 14, 2017 / No comments
A guarantor who cosigned a loan isn’t taxed on a discharged debt. When individuals become delinquent on debts they owe, lenders sometimes forgive all or part of the debt. When this happens, taxpayers must generally report the forgiven debt amount as taxable income. The U.S. Tax Court ruled that a loan guarantor who cosigned a
Read MorePEO – Risks and Rewards
Posted November 8, 2017 / No comments
A professional employer organization (PEO) is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development. Increases in health care costs and new regulations have increased the popularity of PEOs in the past few years.
Read MoreC Corporations: How to tackle year-end tax planning
Posted November 2, 2017 / No comments
How should C corporations tackle year-end tax planning amid uncertainty? As year end approaches, C corps should decide when and how to shift income and deductions between 2017 and 2018. Despite the uncertainty in tax reform proposals (nobody knows when a law might be enacted and what net effect the new rules may have), the
Read MoreChanges in Social Security to Cause Economic Challenges
Posted October 27, 2017 / No comments
Most U.S. retirees will face economic challenges, according to a new GAO report. Changes in Social Security, employer-sponsored pensions, retirement savings plans and individual savings make it hard to plan for and manage retirement, says the report. Other findings: 34% of households age 65 or over receive 90% or more of their income from Social
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