If you’ve formed certain habits related to how you handle meals, entertainment, transportation, and parking as it relates to your business and taxes, the time to change those habits has come.
As this report notes, tax reform law commonly referred to as H.R. 1 Tax Cuts and Jobs Act of 2017 has changed the deductibility of certain meals, entertainment and transportation expenses. Before 2018, a taxpayer could deduct 50 percent of business meals and entertainment and 100 percent of meals provided through an in-house cafeteria or meals provided for the convenience of the employer (i.e., also known as a de minimis fringe benefit). Read More
The standard deduction will be doubled starting in 2018 and many taxpayers itemized deductions may be less than the standard deduction. To maximize itemized deductions in 2017, taxpayers should pay these in 2017.
(A) State and local taxes.
The House bill puts a $10,000 cap on these, but the Senate Finance Committee completely repeals the deduction. In light of this, the following actions should be taken for: Read More
The House has passed their version of the Tax Reform bill and the Senate Finance Committee has approved a bill which will now be debated, amended, and voted on by the full Senate. The bill passed by the Senate will be different from the one passed by the House. The differences will be ironed out by the joint House-Senate Compromise Committee and then voted on by the full House and Senate, which cannot be amended.
This process may not be completed until the end of the year which will not leave much time for taxpayers to do effective planning to minimize their 2017 taxes. Due to the uncertainty of the final law’s provisions, this article makes suggestions how taxpayers can minimize their 2017 taxes. Part I explains ways to minimize income and Part II explains ways to increase deductions. Read More
On September 27th, President Trump and Republican leaders in Congress announced a new conceptual framework for tax reform which they optimistically hope to get enacted into law on or before December 31st of 2017. The proposed conceptual framework broadly describes significant tax law changes affecting both individuals and businesses alike ranging from lower tax rates for individuals and businesses to the repeal of many tax incentives – both deductions and credits. President Trump stated “it is now time for all members of Congress – Democrat, Republican, and Independent – to support pro-American tax reform. It’s time for Congress to provide a level playing field for our workers, to bring American companies back home, to attract new companies and businesses to our country, and to put more money into the pockets of everyday hardworking people.”
On April 26, 2017 the White House released an overview of their tax reform proposal entitled The 2017 Tax Reform for Economic Growth and American Jobs: The Biggest Individual and Business Tax Cut in American History, which outlines President Donald J. Trump’s (hereinafter “President Trump”’) proposal for significant tax reform. While the proposal is largely consistent with President Trump’s conceptual framework during his presidential campaign pledges of dramatically reducing tax rates with the expectation of growing the economy and creating jobs within America much more deliberation needs to occur to properly examine and reconcile this proposal.
Lower Individual Effective Tax Rates, but Only for Select Individuals