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Tag Archive for Tax Cuts and Jobs Act

Tax Cuts And Jobs Act (TCJA): Changes For American Expatriates

Many American citizens who live outside the US have for years raised concerns about the United States’ Citizen-Based-Taxation System. They may have been hopeful when tax reform was being proposed but have been disappointed that their concerns have been ignored. The new tax reform bill Tax Cuts and Jobs Act called TCJA (pronounced tick-jah) has brought about massive changes in the way individuals are going to be taxed but not much has changed for American Expatriates.

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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

Planning For The New Business Interest Expense Deduction Limitation

Ron Wainwright, Tax Advisor, Raleigh, NC, TaxConnections

As part of the Tax Cuts and Jobs Act (“TCJA”) signed into law on December 22, 2017, some important changes have been made with respect to the deductibility of business interest expense for tax years beginning after December 31, 2017. Under prior law, business interest expense was generally deductible in the year in which the interest was paid or accrued, except that corporations were subject to certain limitations under IRC Section 163(j) (“the earnings stripping rules”). TCJA created a new limitation, which replaces the “earnings stripping rules” and applies to all businesses, regardless of form, on the deductibility of net business interest expense that exceeds 30% of a taxpayer’s “adjusted taxable income.” Read more

What Does Tax Reform Mean For Me As An Individual?

John Adams, Tax Advisor, Cherry Hill, NJ, TaxConnections

Many of the politicians touted the new Tax Cuts and Jobs Act as the simplification of our tax code. While it is true that some people may now be able to file less complicated tax returns, the law contains so many provisions that it could effect each person’s tax return in a different way. Much of the “simplification” comes from the repeal of certain deductions which required detailed record keeping and calculations. Whether or not this will save people money is yet to be seen. Read more

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

Charles Rubin, Tax Advisor, Boca Raton, FL, TaxConnections

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

The Tax Cuts Jobs Act Temporarily Expands Bonus Depreciation

Yelena Sandler, Tax Advisor, Rockyville, ML, TaxConnections

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

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

Be Prepared: Filing Season Begins Jan. 29

Tyler Hamelwright, Tax Advisor, Mesa, AZ, TaxConnections

Filing season will begin on Monday, Jan. 29, the Internal Revenue Service announced.

The final tax deadline will be Tuesday, April 17. (April 16 is Emancipation Day, a legal holiday in Washington, D.C.). The IRS expects nearly 155 million individual returns to be filed in 2018.

In 2017, the IRS began accepting returns on January 23; it set the date at January 29 this year to make sure that its key processing systems are ready, and to give it time to determine how late December’s Tax Cuts and Jobs Act will impact tax returns. 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

AMT Credits: A Refundable Carryforward…Subject To Limitation?

Shamen Dugger, Tax Advisor, San Fransisco, CA, TaxConnections

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

Tax Cuts And Jobs Act: Key Provisions Affecting Businesses

The recently passed tax reform bill, commonly referred to as the “Tax Cuts and Jobs Act” (TCJA), is the most expansive federal tax legislation since 1986. It includes a multitude of provisions that will have a major impact on businesses.

Here’s a look at some of the most significant changes. They generally apply to tax years beginning after December 31, 2017, except where noted. Read more

Take Advantage Of Higher Tax Rates—Before It’s Too Late

On December 2, 2017, the Senate passed the Tax Cuts and Jobs Act, a sweeping tax reform bill that seeks to reduce tax rates for corporations and individuals following a strategy outlined in our previous Alert. A similar tax bill was passed by the House of Representatives on November 16, 2017. The White House and Congressional leadership plan to have a unified tax reform bill ready for the president to sign into law before the Christmas holiday. Read more

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