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The Stealthy Increase In The Tax Cuts And Jobs Act Of 2017

Ever since the Reagan Administrative, tax brackets have been indexed for inflation. This avoids bracket creep when taxpayers move into a higher tax bracket because inflation pushes up their income. The thinking is that inflation increases are not real increases in earnings, so the rate tables should be indexed to avoid tax increases arising solely from inflation. This seems like less of an issue today with relatively tame inflation rates, but remember that inflation went into the teens in some years in the 1970’s making bracket creep a big issue. Read more

Small Business Tips: How To Expand Your Business

Congratulations on successfully starting your business! If you’re ready to take the next step, but don’t know exactly how to go about that, here are some ideas for thinking about growing your business. Turn your business into a franchise – If your business model is easily replicated, and you want to see your business grow quickly, think about franchising. As the owner, now referred to as a franchiser, of the name or trademark sells that right to a franchise. Read more

How To Deduct Toll Expenses On Your Taxes

In this Ask a Tax Expert, our tax pro answers how to deduct tolls on your taxes. Remember, you can deduct nearly any toll as long as it’s related to business. But, what if your tolls are related to charity?

Can I Deduct Toll Expenses On Taxes?

Q. My wife volunteers for a hospice care organization. She travels there daily and pays a lot of tolls to get to some of her patients. Most of our monthly toll bill is for her volunteer work. Would we be able to deduct those from our taxes? Read more

The Tax Cuts Jobs Act Temporarily Expands Bonus Depreciation

The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation. While most TCJA provisions go into effect for the 2018 tax year, you might be able to benefit from the bonus depreciation enhancements when you file your 2017 tax return. Pre-TCJA bonus depreciation Under pre-TCJA law, for qualified new assets that your business placed in service in 2017, you can claim a 50% first-year bonus depreciation deduction. Used assets don’t qualify. This tax break is available for the cost of new computer systems, purchased software, vehicles, machinery, equipment, office furniture, etc. Read more

Working From Home? Claim Your Home Office Deductions

Some of us are quite lazy to drive/ride to work every day, so we prefer to set up office at home. Well, jokes apart, some of the small business that operates right out of their homes qualify for deductions. But the fear of audit keeps them away from any such declarations. But in all fairness, if it is genuine and you deserve it, there are no reasons as to why you should not aim for it.

The following are some pointers that you should keep in mind before proceeding with claiming home office deductions. Read more

5 Ways The New Tax Law Affects 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. 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

IRS And FTB Power Of Attorney Forms Have Changed

If you are a tax professional, take note of recent changes that the Internal Revenue Service (IRS) and California Franchise Tax Board (FTB) have made to their power of attorney forms that may affect your ability to access client information.

The IRS form, found here, has expanded section 5a to include a box you must check if you have intermediaries access client transcripts for you.  The FTB has completely rehauled its power of attorney form system — there is a new form to use for individuals, a separate form for business entities, and a third form to use when you want to revoke your power of attorney.  Read more

AMT Credits: A Refundable Carryforward…Subject To Limitation?

With its extensive changes and immediate effects, the December 2017 enactment of the Tax Cuts and Jobs Act (the “Act”) has taxpayers seeking guidance on the Act’s potential impact to their businesses. Uncertainty results from the interaction of certain new provisions of the tax law with unchanged provisions. One example of this uncertainty is the question of whether alternative minimum tax (AMT) credits remain subject to potential limitation under section 383 of the Tax Code now that the AMT credits have been made “refundable” – i.e., capable of generating refunds for taxpayers without overall taxable income for the year. Read more

Corporate Separations Under §355.

In any successful family business there will likely come a time when descendants will want to take over the business from the older generation of owners. Usually, this will require that entities will need to be split into different business entities to accommodate both differences between the descendants (perhaps the descendants can’t cooperate with each other) or managing risk, so that high risk business can be separated from lower risk businesses and investments (construction business needs to be separated from investment assets such as stocks, bonds, annuity assets).

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Pre Immigration Income Tax Planning

There are several techniques to insure that accumulated wealth and income earned prior to becoming a United States taxpayer can be protected from United States taxes. This requires planning in advance by nonresident alien individuals who will become United States taxpayers.

Have a question? Contact Richard Lehman. Your comments are always welcome!

How To Preserve The Value That The Oil Shale Industry Creates?

While working in open markets with many players, companies cannot influence the market situation and with low energy prices we have to find other ways to cope. By introducing a flexible regulation dependent on the market price the state can certainly alleviate the situation in the industry, but such decisions are not made overnight and such decisions alone will not keep the industry afloat.

Eesti Energia strongly contributes by doing what the company can do on its own. These efforts can be summed up as “industrial innovation”. We focus on development projects that increase energy production efficiency and reduce the environmental footprint. Read more

Tax Reform Changes How You Itemize

The media is abuzz with Tax Reform news, here to allay your confusion regarding the cut to some deductions and tax rates is my latest blog post. The media is abuzz with Tax Reform news, here to allay your confusion regarding the cut to some deductions and tax rates is my latest blog post.

The tax rates change has been the most publicized but there are many deductions on the chopping block that will drastically change how you prepare your taxes and/ or your bottom line.  Read more

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