INDIVIDUAL TAX

Have You Updated Your Charitable Giving Plans?

The U.S. government has a long history of encouraging its citizens to donate to charity. More than a century ago, the government began subsidizing charitable giving by allowing taxpayers to deduct donations they made to eligible nonprofit organizations. But since the 2017 Tax Cuts and Jobs Act (TCJA) raised the standard deduction, far fewer individuals [...]

2019-11-19T20:58:21-05:00November 19th, 2019|INDIVIDUAL TAX|

Why a Donor-Advised Fund is Worth Considering This Giving Season

Charitable giving has solidified its place among the top tax planning strategies, allowing donors to give to a good cause while receiving a significant tax deduction in return for their generosity. The higher standard deduction set in place by the Tax Cuts and Jobs Act will result in fewer taxpayers seeing a benefit from itemizing [...]

2019-12-02T10:49:15-05:00November 19th, 2019|INDIVIDUAL TAX|

A Dynasty Trust Could Be The Right Move for You

Last year, the Tax Cuts and Jobs Act (TCJA) was signed into law and began to affect more than just individual income taxes. This is new law brought major changes to estate planning and in turn bolstered dynasty trusts and their potential value. Changes to Exemptions When you take a closer look at the TCJA, [...]

2019-09-30T16:44:36-05:00September 30th, 2019|INDIVIDUAL TAX|

IRS Opens a Small Window to Reconsider Bonus Depreciation Elections

The enactment of the Tax Cuts and Jobs Act (TCJA) in December of 2017 led to one of the more chaotic tax filing seasons in recent memory. The new law included several provisions that affected bonus depreciation treatment and calculations, and some taxpayers may have filed their returns without fully considering the different options that [...]

2019-08-07T14:12:48-05:00August 7th, 2019|INDIVIDUAL TAX, REVENUE RECOGNITION|

Plan Now to Avoid Underpaying Income Taxes

The Tax Cuts and Jobs Act changed the income tax calculation for most taxpayers. The law changed rates for taxes and tax brackets, revised business expense deductions, increased the standard deduction, removed personal exemptions, increased the child tax credit, and limited or discontinued other deductions. If You’re an Employee Who Gets a W-2 For most [...]

2019-07-25T10:27:03-05:00July 25th, 2019|INDIVIDUAL TAX|

Treasury Guidance on Global Intangible Low-Taxed Income (GILTI) and Deduction for Dividends from Foreign Corporations

The Treasury Department and the IRS recently released several pieces of guidance related to the global intangible low-taxed income (GILTI) provisions and the deduction for dividends received from foreign corporations that were enacted as part of the Tax Cuts and Jobs Act of 2017 (TCJA). The GILTI provisions require income to be reported in the [...]

2019-07-25T10:40:26-05:00July 24th, 2019|INDIVIDUAL TAX|

How Does an Investment in an Opportunity Zone Affect Your Taxes?

Investors and developers have many questions about the opportunity zone program created by the Tax Cuts and Jobs Act of 2017. The following example gives some specifics about how these investments will be structured. Client An investor or developer has a qualifying gain of $1 million from the sale of a capital asset. She chooses [...]

2019-08-27T09:30:14-05:00July 2nd, 2019|INDIVIDUAL TAX, OPPORTUNITY ZONES|

IRS Issues Finalized Regulations on Both State and Local Tax Credits as Well as Charitable Contributions

The U.S. Department of the Treasury and the Internal Revenue Service have published finalized statutes calling for taxpayers to lower their charitable contribution deductions by the amount earned or expected to earn in return for in-state or local tax credits. The IRS also stated that taxpayers could recognize payments in exchange for these credits as [...]

2019-06-26T10:50:08-05:00June 26th, 2019|INDIVIDUAL TAX|

Working to Strengthen Taxpayer Protections: IRS Under Reform from Congress

With a direct focus on the IRS, the U.S. Senate has passed an extensive reform package aimed at further protecting taxpayers. Alongside new provisions adopted to improve customer service provided by the IRS, the Taxpayer First Act contains several new taxpayer protections. Improved Identity Theft Defenses Tax-related identity theft was a top contender for new [...]

2019-06-24T11:22:48-05:00June 20th, 2019|INDIVIDUAL TAX|

How Can Home Sellers Exclude Capital Gains Tax?

U.S. tax laws have long offered incentives to people who own the homes they live in. Among the most generous of these incentives is the ability to reduce the taxable gain on the sale of a personal residence. Here’s what most sellers need to know to meet the requirements of the law. Are You Eligible [...]

2019-05-28T12:18:14-05:00May 28th, 2019|INDIVIDUAL TAX|

Additional Relief from IRS for Taxpayers who Underpaid on Their Income Taxes in 2018

Based on a combination of wage withholdings and quarterly tax estimates, the U.S. tax system utilizes a system that requires taxpayers to "pay-as-you-go," as opposed to waiting until the end of the year to pay income taxes. Under the current law, if you fail to pay 90% of your current year tax, the results of [...]

2019-03-29T12:56:06-05:00March 29th, 2019|INDIVIDUAL TAX|

Beware of Potential IRS Phone Call Scams

During the early months of the year, tax filing season quickly becomes tax scamming season. In the hopes of focusing public attention on this problem, the IRS has released its annual list of the Dirty Dozen tax scams—many of which lead to identity theft. It is always easy to become overconfident in your ability to detect fraud. [...]

2019-03-27T16:43:09-05:00March 27th, 2019|INDIVIDUAL TAX|

Understanding the New Kiddie Tax

The Tax for Certain Children Who Have Unearned Income, informally known as the “Kiddie Tax,” can sneak up on unsuspecting taxpayers. This section of the Tax Code was initially created to prevent taxpayers from reducing their tax bill by shifting some of their unearned income — such as interest, dividends, and capital gains — into [...]

2019-03-18T20:56:25-05:00March 18th, 2019|INDIVIDUAL TAX|

How to Properly Organize Your Tax Records

There never seems like a good time to organize your tax records, but the period of time between filings last year’s taxes and this year’s return can usually be the perfect time. While this task is never an exciting one, get it done and out of the way will only save you time and plenty [...]

2019-02-19T14:26:26-05:00February 21st, 2019|BUSINESS TAX, INDIVIDUAL TAX|

How to Protect Yourself from Tax Identity Theft

During the busy season, tax identity theft becomes a major issue as identity thieves seek out tax returns as their primary target. Considering that the IRS processes tax refunds every year that amount to billions of dollars, criminals simply have to follow the money. To file a fraudulent tax return and pocket your money, all [...]

2019-02-15T13:28:38-05:00February 15th, 2019|BUSINESS TAX, INDIVIDUAL TAX|

2018 Underpayment Tax Penalties Waived by IRS

According to the IRS, they will be waiving underpayment penalties for anyone who had federal income tax withholding and estimated tax payments come in under their actual tax liabilities in 2018.  This waiver was constructed with the understanding that the Tax Cuts and Jobs Act (TCJA) would revamp the federal income tax regime and in [...]

2019-01-28T11:02:16-05:00January 22nd, 2019|INDIVIDUAL TAX|

5 Things to Remember About Substantiating Donations

When it comes to making a charitable donation, there are countless organizations and causes available to which you can contribute. While you have the option to simply give cash, many organizations also accept noncash items such as stock, personal property, or real estate. No matter the form of your donation, you have earned a tax [...]

2019-01-31T16:09:02-05:00January 16th, 2019|INDIVIDUAL TAX|

Avoid Double Tax on Nondeductible IRA Contributions

Do you already make nondeductible contributions to a traditional IRA for yourself? If so, it’s important to understand the tax treatments of distributions in order to avoid being taxed twice on income that you are already contributing. Substantiate Your Chosen Strategy When it comes to contributing nondeductible amounts to an IRA, there are usually several [...]

2019-01-16T15:25:37-05:00January 16th, 2019|INDIVIDUAL TAX|

Tax Benefits of Student Loan Repayment

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 [...]

2018-12-05T15:04:51-05:00December 4th, 2018|INDIVIDUAL TAX, TAX REFORM: INDIVIDUAL TAX|

IRS Clarifies Deductibility of Business Meals

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 [...]

2018-12-11T15:19:40-05:00October 4th, 2018|BUSINESS TAX, INDIVIDUAL TAX|