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
Tag Archive for Alternative Minimum Tax
Many of you have heard that President Donald Trump has proposed changes to the tax laws, some of which includes lowering the rates paid by businesses. Here are a few of the highlight’s of the proposed plan: Read more
In reviewing some IRS stats for 2014 returns, I was surprised to see that two taxes added by the Affordable Care Act (Obamacare), generated more revenue in 2014 than was generated from the individual AMT. Here are the stats:
A Practical Guide To The Enhanced R&D Tax Credit Program For Eligible Small Businesses And Eligible Start-Ups
The Federal-Level Research and Development Tax Credit Program (hereinafter “RTCP” or “RTC”) was originally enacted into the Internal Revenue Code (hereinafter “the Code”) through the Economic Recovery Tax Act of 1981 as a temporary provision of the Code at a time when research and development jobs were significantly declining throughout the United States. Notably, the RTCP was introduced into the Code to encourage businesses to invest in significant research and development efforts with the high expectations that such an advantageous tax incentive program would facilitate in stimulating economic growth and investment throughout the United States and prevent further jobs from being outsourced to other countries.
The Enhanced R&D Tax Credit Program Provides A True Path To Meaningful Tax Savings For both Small Businesses And Start-Up Companies
The Protecting Americans from Tax Hikes Act of 2015 (hereinafter the “PATH Act”) significantly enhanced the Federal-Level R&D Tax Credit Program (hereinafter “RTC Program”) under I.R.C. § 41 on a myriad of levels for both eligible “Small Businesses” and “Start-Up Companies”. More specifically, the enhanced RTC Program has been considerably restructured for these aforementioned eligible companies to now:
The Enhanced R&D Tax Credit Program Provides A True Path To Significant Tax Savings For Small Businesses
The Protecting Americans from Tax Hikes Act of 2015 (hereinafter the “PATH Act”) significantly enhanced the Federal-Level R&D Tax Credit Program (hereinafter “RTC Program”) under I.R.C. § 41 on a myriad of levels for both eligible “Small Businesses” and eligible “Start-Up Companies”. More specifically, the enhanced RTC Program has been considerably restructured for these aforementioned eligible companies to now:
The House Republicans have proposed their updates to the US tax plan, titled A Better Way. Looking at the basics, it shares many similarities with that of Donald Trump’s plan. The plan takes much from the idea that the US tax system is too complex and broken. While having the backing of the Republican Party, House Democratic leader Nancy Pelosi and AFL-CIO have openly spoken against it.
Even if you’ve never paid Alternative Minimum Tax (AMT), before, you should not ignore this tax. Why? Because your tax situation might have changed and this might be the year that you need to pay AMT. AMT attempts to ensure that taxpayers who claim certain tax benefits pay a minimum amount of tax. You may have to pay this tax if your income is above a certain amount.
Here’s what you should know about the AMT:
1. When AMT applies. Your filing status and income determine the amount of your exemption. You may have to pay the AMT if your taxable income, plus certain adjustments, is more than your exemption amount. In most cases, if your income is below this amount, Read more
It’s been a few months, but “Welcome 2015!” As the new year rolls around, it’s always a sure bet that there will be changes to current tax law and 2015 is no different. From health savings accounts to retirement contributions and standard deductions, here’s a checklist of tax changes to help you plan the year ahead.
For 2015, more than 40 tax provisions are affected by inflation adjustments, including personal exemptions, AMT exemption amounts, and foreign earned income exclusion, as well as most retirement contribution limits.
For 2015, the tax rate structure, which ranges from 10 to 39.6 percent, remains the Read more