INDIVIDUAL TAX

IRS Issues Finalized Opportunity Zone Regulations

The Internal Revenue Service has issued final regulations (T.D. 9889) providing details about the tax treatment of investments in qualified opportunity zones (QOZs). This guidance modifies and finalizes proposed regulations that were issued on Oct. 28, 2018, and May 1, 2019. The Tax Cuts and Jobs Act (TCJA) created the opportunity zone as a new incentive for [...]

2020-01-21T13:48:43-05:00January 21st, 2020|INDIVIDUAL TAX, OPPORTUNITY ZONES|

Not-So-Safe Harbor? Navigating the QBI Rules for Rental Real Estate Businesses

The IRS released final guidance this fall to help taxpayers figure out when rental real estate activities might qualify as a “trade or business” for purposes of the Section 199A 20% qualified business income (QBI) deduction. The final guidance sets forth four requirements that, when met, provide a taxpayer with some assurance that the IRS [...]

2020-01-16T20:13:51-05:00January 16th, 2020|BUSINESS TAX, INDIVIDUAL TAX|

When Does a Hobby Become a Business?

Many people enjoy hobbies that are also a source of income. From painting and pottery to scrapbooking and photography, these activities can be sources of both fun and finances. If you start to make money from a hobby, you will need to report that income on your tax return. Until 2018, certain hobby expenses were [...]

2020-01-08T12:32:04-05:00January 8th, 2020|INDIVIDUAL TAX|

What You Need to Know About the Home Office Deduction

Working from home is becoming more and more popular. And while W-2 employees are no longer eligible to deduct their home expenses, those who own or co-own a business can take advantage of the deduction. Here’s what you need to know about the home office deduction and how you might be able to use it [...]

2020-01-07T13:31:00-05:00January 7th, 2020|INDIVIDUAL TAX|

New Tax Provisions Introduced by the Further Consolidated Appropriations Act, 2020

On Friday, December 20, 2019, the President signed the Further Consolidated Appropriations Act, 2020 (the “Act”) which addresses several tax provisions such as retirement plan funding and distribution reform, items related to expiring or expired tax provisions (“tax extenders”), and disaster tax relief. RETIREMENT PLAN FUNDING AND DISTRIBUTION REFORM The Act also includes the SECURE [...]

2019-12-26T08:43:22-05:00December 20th, 2019|INDIVIDUAL TAX|

New 2020 Form W-4: What Employers Need to Know

The Tax Cuts and Jobs Act of 2017 overhauled numerous provisions of individual tax law, including reducing statutory tax rates amongst the different income tax brackets and suspending personal exemption amounts. These changes required employers to adjust their employees’ withholdings with revised tax tables while using the historical Form W-4. These law changes, combined with [...]

2019-12-19T12:30:40-05:00December 19th, 2019|BUSINESS TAX, INDIVIDUAL TAX|

It’s Never Too Late: See How You Can Cut the Bill for Your 2019 Taxes

With the latest change of seasons, that means that filing your tax return is right around the corner and will require your full attention very soon. Although there were a number of tactical strategies proposed and utilized during the most recent tax filing season under the latest changes from the Tax Cuts and Jobs Act [...]

2020-01-22T16:35:12-05:00December 16th, 2019|INDIVIDUAL TAX, Uncategorized|

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 [...]

2019-12-18T11:57:02-05:00November 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, [...]

2019-09-30T16:44:36-04:00September 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 [...]

2019-08-07T14:12:48-04:00August 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 [...]

2019-07-25T10:27:03-04:00July 25th, 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 [...]

2019-08-27T09:30:14-04:00July 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 [...]

2019-06-26T10:50:08-04:00June 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 [...]

2019-06-24T11:22:48-04:00June 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 [...]

2019-05-28T12:18:14-04:00May 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 [...]

2019-03-29T12:56:06-04:00March 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. [...]

2019-03-27T16:43:09-04:00March 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 [...]

2019-03-18T20:56:25-04:00March 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|