For years, news headlines have been rife with the catchphrases “student loan epidemic” and “student debt crisis.” Unfortunately, these expressions are not hyperbolic; tuition costs continue to rise each year, and federal subsidies are not keeping pace. As a result, students must pay more every year to attend college. Taxpayers are taking years and even [...]
The IRS has issued a notice 2018-76 to clarify the deductibility of business meals and entertainment in light of changes enacted last year as part of the Tax Cuts and Jobs Act (TCJA). The IRS explains that taxpayers may continue to deduct 50 percent of the cost of business meals if the taxpayer (or an [...]
One of the many goals of the 2017 Tax Reform was to simplify individual income taxes. Itemized deductions have always been viewed as adding complexity to a tax return. However, the latest Tax Reform has increased the standard deduction, resulting in fewer people needing to take time to itemize their deductions. Likewise, a higher Alternative [...]
Preparing for Your Cryptocurrency Tax Obligations As the saying goes, it is best to “be prepared” for any situation that arises. When it comes to cryptocurrencies, this statement could not ring truer. Waiting until next April to think about the tax implications of virtual currency transactions will make the tax preparation process difficult and burdensome, [...]
Randomly picking which debt to pay off first is not the ideal strategy—especially considering the magnitude of the average American’s debt, as well as rising interest rates. In 2017, the average American household had more than $130,000 of debt, made up of home mortgages, credit card debt, student loans, and auto loans. It’s no wonder [...]
Don’t let a natural disaster become a tax disaster too. Be sure to protect your tax records and other valuable information. This time of year it is especially important to utilize the tips below in preparation for hurricane season. 1. Electronic Backup Taxpayers should always keep a set of backup records of all important documents [...]
Federal tax reform changes aren’t the only changes to tax laws in 2018 –- there are also changes here at the local level in Georgia to consider as well! Governor Nathan Deal recently signed two major revisions affecting nearly all Georgia taxpayers. These changes are in response to the massive federal tax reform signed into law [...]
No matter how untraceable digital transactions may seem, there is no hiding cryptocurrency under the mattress. Virtual currencies like Bitcoin, Litecoin, and XRP are digital assets that cannot be hidden or concealed. Even though virtual currency is often anonymously held and transacted, it is traceable, and the IRS will go to great lengths to find [...]
Tax Reform has made a significant impact on estate planning—and the changes are as sweet as honey. The most buzz-worthy, amongst the swarm of differences, is the increase in the lifetime exemption amount, which doubled under Tax Reform. Something to Hum About Under previous law, the lifetime exemption was $5 million adjusted for inflation, meaning [...]
Who? Alabama taxpayers who pay more than $10,000 in state and local taxes. What? A potential, time-sensitive tax planning opportunity exists under the Alabama Accountability Act (AAA)* given the state tax deduction limitation under the recently passed Tax Reform, which limits the amount that taxpayers can deduct for state and local income, sales, and property [...]
Filing a Section 83(b) Election could equal significant tax savings for you in the following 3 scenarios: founder of a new company without value, low valuation high expectations company stock, or company with potential liquidating event, as Kellie Shipley shares. Contact CRI for help making your move.
Do you know the difference between tax credits and tax deductions? And are you taking advantage of tax credits for actions you're already taking? Similar to deductions, tax credits incentivize individuals and businesses to reduce their overall tax liabilities. However, tax credits differ in that they provide a “dollar for dollar” reduction in [...]
As many business owners might tell you, there are times when business income and individual income can feel like two parallel universes co-existing in the cosmos. While they are closely related, passing through income from one to the other can seem as complicated as space travel itself. Lucky for you, recent changes within the Tax [...]
There are many new interesting aspects in the Tax Reform that may tug on individual taxpayers’ wallets. Here are highlights of three main areas potentially dividing dollars. 1. Alimony One area that seems to be falling under the radar is the impact on divorce settlements. For divorce or separation agreements executed after December 31, 2018, [...]
According to 2015 IRS statistics, approximately 30% of all taxpayers itemize their deductions. And with Tax Reform affecting many areas of the Tax Code, Schedule A and itemized deductions are no exception. If you have itemized deductions previously, or are considering future itemization, below are some of the significant changes and considerations when deciding what [...]
Debt is a reality for many Americans. Consider the following statistics from consumer information provider ValuePenguin: The average amount of credit card debt in America is $5,700. More than one-third of all American households have credit card debt. The total outstanding U.S. consumer debt is $3.9 trillion. Many individuals find themselves underestimating or ignoring their [...]
If you were fortunate enough to have not been impacted by hurricanes, tornadoes, wildfires, or other natural disasters this year, then why not consider making a charitable donation to the victims? There are several “smart” ways to make a contribution that will help provide disaster relief and also get you tax deductions and other rewards for your [...]
It can be startling to see terms that you do not recognize, particularly terms applying to taxes. Take a few minutes to familiarize yourself with these common tax terms so that they don’t spook you! 1. AGI Adjusted gross income (AGI) is the number you add to that very last box on Page 1 of your [...]
When a lender offers the next item up for bid – a brand spanking new mortgage! – a working knowledge of mortgage interest points can help a borrower come in with the strongest bid. Going once: Understanding mortgage interest points Mortgage interest points are payments made by a borrower to the lender when securing a [...]
With that sigh of relief that the deadline to file your tax return—or request an extension—has passed you may also desire to purge some prior year documents such as receipts, canceled checks, and bank and brokerage statements. Follow these general retention tips for individuals and businesses as you head toward the blue skies of summer. [...]
