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Tag Archive for Lisa Nason

Calculator To Determine If You Should Buy Or Lease A Car

TaxConnections Member Lisa Nason of Nason Accounting located in Greenville, South Carolina shares a valuable calculator that helps you determine whether you should buy or lease a car. Use this calculator to find out! It calculates your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.

Prior to using this handy Lease Or Buy Car Calculator, you may appreciate knowing the following definitions:

Purchase Price

Total purchase price. Price should be after any manufacturer’s rebate.

Down Payment

Amount paid as a down payment, which for leases is often called a capital reduction.

Sales Tax Rate

Percentage sales tax to be charged on this purchase. Sales tax is included in each lease payment. Sales tax for buying is charged on the total sale amount.

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Self-Employment Tax Calculator (Tax Year 2018)

Self-Employment TaxCalculator

Use this calculator to estimate your self-employment taxes. Normally these taxes are withheld by your employer. However, if you are self-employed, operate a farm or are a church employee you may owe self-employment taxes. Please note that the self-employment tax is 12.4% for the FICA portion and 2.9% for Medicare.

Additional Medicare Tax

This calculator does not include any required amounts for the Additional Medicare Tax. This tax applies to a household and not an individual tax payer. Joint filers with over $250,000 in earned income, single filers with over $200,000 in earned income and married persons filing separately with over $125,000 in earned income will owe an additional 0.9% of the amount exceeding these thresholds. These thresholds are not index to inflation. This is paid only by the tax payer, there is no additional employer amount. This additional tax is calculated on your full tax return and while it is directly related to your earned income it is not calculated with your self-employment taxes.

Net Farm Income Or Loss

This is your net farm income or loss. This should include both the net farm profit or loss from Schedule F along with any income from farm partnerships. Please note that if your gross farm income is $2,400 or less and your net farm income is $1,733 or less there is a ‘Farm Optional Method’ for calculating income subject to self-employment taxes. If you qualify for this optional method it may produce a slightly lower income subject to self-employment taxes. This calculator assumes that you will not use the ‘Farm Optional Method’. For more information see IRS Schedule SE Part II, Optional Methods to Figure Net Earnings.

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IRS Clarifies Interest On Home Equity Loans Can Still Be Deductible

In an Information Release, IRS has announced that in many cases, taxpayers can continue to deduct interest paid on home equity loans under the recently enacted Tax Cuts and Jobs Act.

Taxpayers may deduct interest on mortgage debt that is “acquisition debt.” Acquisition debt means debt that is: (1) secured by the taxpayer’s principal home and/or a second home, and (2) incurred in acquiring, constructing, or substantially improving the home. This rule hasn’t been changed by the Tax Cuts and Jobs Act.

Under pre-Tax Cuts and Jobs Act law, the maximum amount that was treated as acquisition debt for the purpose of deducting interest was $1 million ($500,000 for marrieds filing separately). Under the Tax Cuts and Jobs Act, for tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, the limit on acquisition debt is reduced to $750,000 ($375,000 for a married taxpayer filing separately).

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S Corporations vs. C Corporations In 2018

Many of you are wondering how the new tax rate changes will impact you. Obviously, we can’t answer that off the top of our heads as each person’s situation is different, and in many cases, experts are still trying to figure out how the changes will play out. One of the biggest changes is the corporate tax rate reduction to a maximum of 21% versus the maximum tax rate for individuals being around 37%.

The new tax legislation becomes effective January 1. That means many business owners are now considering whether to reorganize themselves as C corps.

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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

Leasing An Automobile Versus Buying An Automobile Calculator

TaxConnections is pleased to repost one of the most popular blog posts on making a decision to lease versus purchasing an automobile. This hugely popular calculator is provided by Lisa Nason of Nason Accounting headquartered in Greenville, South Carolina.

Many visitors nationally and internationally were so appreciative of this post we decided to make it available to you all once again.

Should you lease or buy your car? Use this calculator to find out! We calculate your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.

https://www.nasonaccounting.com/calculators/BuyvsLease.html  

Have questions? Contact Lisa Nason at 864.297.7742.

 

Tax Payment Options You Need To Know

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

For those of you who may have to fork over some additional funds to Uncle Sam, there are several options available for making payments.

If you can’t pay your tax bill in full, a payment plan may be an option. Additional information about all payment and payment plan options can be found at www.irs.gov/payments and in Publication 5034, Need to Make a Payment? (English & Spanish).

The IRS also offers taxpayers the ability to pay using their mobile device through the IRS2Go app, available on the Apple or Google Play store. Read more

Calculator Helps You – Should You Lease Or Buy An Automobile?

As CEO of TaxConnections, I want to personally credit our member Lisa Nason for her Calculator – Should You Lease Or Buy An Automobile? TaxConnections has many smart and resourceful tax advisors as members and Lisa is in Greenville, South Carolina is certainly one smart tax advisor.

We recently discovered a wonderful tool on Lisa Nason’s site and want to share it with our community. This Calculator Resource was devised to help you determine if it makes more sense to lease or purchase an automobile. Here is the link for you: https://www.nasonaccounting.com/calculators/BuyvsLease.html

We know you will find value with this resource and want to thank Lisa Nason for sharing it with our members. Have a question? Contact Lisa Nason

 

 

S Corporation Vs. C Corporation In 2018

Lisa Nason, Tax Advisor, Tax Blog, Greenville, SC, TaxConnections

Many of you are wondering how the new tax rate changes will impact you. Obviously we can’t answer that off the top of our heads as each person’s situation is different, and in many cases experts are still trying to figure out how the changes will play out. One of the biggest changes is the corporate tax rate reduction to a maximum of 21% versus the maximum tax rate for individuals being around 37%. 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 Update: Trump Tax Proposals

Lisa Nason, Tax Advisor

Both the House and Senate have passed their versions of President Trump’s tax bill, and there are many similarities, including the limiting of itemized deductions to mortgage interest, charitable contributions, and property taxes (up to $10,000), and the doubling of the estate, gift, and generation-skipping transfer tax exemptions from $5.6 million to $112 million in 2018. These versions also differ in a number of ways. These differences will have to be resolved through a legislative conference committee. Some differences should be easy to reconcile, but resolving others is expected to take time and effort. Read more

President Trump’s Tax Proposals

Lisa Nason, Tax Advisor

Both the House and Senate have passed their versions of President Trump’s tax bill, and there are many similarities, including the limiting of itemized deductions to mortgage interest, charitable contributions, and property taxes (up to $10,000), and the doubling of the estate, gift, and generation-skipping transfer tax exemptions from $5.6 million to $112 million in 2018. These versions also differ in a number of ways. These differences will have to be resolved through a legislative conference committee. Some differences should be easy to reconcile, but resolving others is expected to take time and effort. Read more

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