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Archive for 2018 Tax Law

Charitable Miles Deduction: Is It Changing Under The New Tax Reform?

Lisa Nason, Tax Advisor, Tax Blog, Greenville, South Carolina, USA, TaxConnections

Now that the effects of last year’s tax reform bill are being felt, the proposals to reform the reform keep rolling in. Last month, Sen. Bob Casey (D-PA) put forth a bill to reinstate unreimbursed job expenses. This week, Rep. Richard Nolan (D-MN) introduced H. R. 5662, also known as the Volunteer Driver Tax Appreciation Act of 2018.

The purpose of the bill is to amend the Internal Revenue Code of 1986 to equalize the charitable mileage rate with the business travel rate. For 2018, the Internal Revenue Service (IRS) optional standard mileage rates for the use of a car, van, pickup or panel truck are 54.5 cents per mile for business miles driven but a mere 14 cents per mile driven in service of charitable organizations. Read more

Tax Changes Are Coming – New Rules On Divorces And Home Buying

Barry Fowler, Tax Advisor, Tax Blog, Houston, Texas, USA, TaxConnections

With the end of this season we also see the end of tax laws as they have been for decades. Now we have to look ahead and make sure there won’t be any unpleasant surprises and taxpayers will be subject to the new laws.

If you are planning on a divorce this year, you’ll want to review the new rulings. If you’re buying a new home, again, you’ll want to make sure you are clear about whether or not you can write off the interest on your loan. Read more

Top 10 Tax Provisions You May Not Have Heard In The News

Blake Christian, Tax Advisor, Long Beach, CA, TaxConnections

Even though described as “Simplification,” the Ways and Means proposal is 82+ pages long and will likely expand during the markup Even if passed in 2017, the vast majority of changes will not be effective until 2018.

While the tax rate brackets will be simplified from seven to four, higher income taxpayers will occasionally find them in a higher bracket under the proposal than they would under current law. For example, an individual taxpayer with $200,001 to $424,950 in 2018 will jump to a 35% rate vs. 33% under current law. Likewise, a married couple with $260,001 to $424,950 will jump to 35% vs. 33%. Read more

New Tax Code Just Made Sexual Harassment More Expensive

Daniel Morris, Tax Advisor, San Jose, California, Tax Blog, TaxConnections

Tax incentives still matter. While “follow the money” is an excellent concept for seeking greater information about “what has happened,” by identifying and following the incentives is far superior for determining what “will” happen.” In economic terms, the differences are substantial. One is a lagging indicator (where we have been) and the other is the leading indicator (where we are going).

The new law states, no deduction is allowed for any settlement, payout, or attorney fees related to sexual harassment or sexual abuse if such payments are subject to a nondisclosure agreement. Read more

5 Ways The New Tax Law Affects Paying For College

Blake Christian, Tax Advisor, Long Beach, CA, TaxConnections

The final version of the GOP tax bill that passed last month rewrites the tax code in many ways, eliminating deductions and adding new benefits. Some of these new provisions affect those paying for college. The final version of the GOP tax bill that passed last month rewrites the tax code in many ways, eliminating deductions and adding new benefits. Some of these new provisions affect those paying for college. Read more

2018 Tax Changes

Lisa Nason, Tax Advisor, Greenvillle, NC, TaxConnections

Most of you are aware that a new tax law was recently passed.  Most of the changes relate to 2018 and beyond – here are just a few of the ones most like to affect individuals.

Standard Deduction Increased

For tax years beginning after Dec. 31, 2017 and before Jan. 1, 2026, the standard deduction is increased to $24,000 for married individuals filing a joint return, $18,000 for head-of-household filers, and $12,000 for all other taxpayers, adjusted for inflation in tax years beginning after 2018. No changes are made to the current-law additional standard deduction for the elderly and blind.  Read more

New Law Includes A Mixed Bag Of Benefits And Limits To Tax Breaks For Businesses

Steven Schechter, Tax Advisor, Santa Clara, CA,TaxConnections

The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, will broadly impact businesses of all sizes.

The bill significantly reduces the income tax rate for corporations and eliminates the corporate alternative minimum tax (AMT). It also provides a large new tax deduction for most owners of pass-through entities and significantly increases individual AMT and estate tax exemptions. And it makes major changes related to the taxation of foreign income.

You may even be able to utilize some enhancements on your 2017 tax return. Read more

2018 Pocket Tax Guide Online Edition

Bernell Ward, Tax Advisor, Bronx, NY, TaxConnections

It has been a busy time for tax-related news and upcoming changes. We have compiled many of the tax changes, deductions and tax rates for easy reference year round. It is more important than ever to plan ahead and review your options to maximize your financial results. Also please visit our side-by-side comparison of 2017 tax law and and the recently enacted “Tax Cuts and Jobs Act.”

HIGHLIGHTS OF THE CHANGES AFFECTING 2018

Congress in December of 2017 passed the Tax Cuts and Jobs Act that made sweeping changes to the tax laws. The issues impacting individuals and small businesses are included throughout this pocket tax guide. The following are changes not covered elsewhere in the guide.  Read more

Tax Alert (USA) – US Tax Cuts & Jobs Act

Trevor Bennington, Tax Advisor, Langley, BC, TaxConnections

On November 2, 2017, the US Congress House Ways and Means Committee unveiled the tax reform plan called the Tax Cuts & Jobs Act.  The bill aims to simplify the Internal Revenue Code and introduce tax savings for the average American family.  Although it is unlikely that the legislation will make it through Congress unscathed, it does provide a more detailed blueprint of the tax reforms that the citizens would like to enact.  Below are highlights of the proposed changes. Read more

Tax Reform Impacts The Research Tax Credit, Domestic Production Activities Deduction & Orphan Drug Credit

Nate Collins, Tax Advisor, San Francisco, CA, TaxConnections

Lower Corporate Tax Rate
The law cuts the corporate tax rate from 35% to 21%. In effect, this cut increases the Research Credit’s net benefit by more than 21%, from its previous amount of 65% to the law’s 79%.

The 21% increase in the credit’s net value is due to IRC Section 280C(c). Read more

Entity Classifications Under The New Tax Act

Welcome to 2018 and your new 2018 Tax Laws. If you are not aware, there is a new Tax Law that will affect all of you in our Professional care this year.

We know, understand and respect that each of your company’s DNA is unique. There are no simple answers to complex questions. Lately, the U.S. business media is abuzz with ideas and recommendations relative to the “best” corporate structure. While these are generic and generalized suggestions, some might have merit; there is little value without considering all the factors surrounding a business including, but not limited to: Read more

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