January 26, 2018 12:00 pm
Published by Mark
Under pre-Act law, a taxpayer could deduct as an itemized deduction qualified residence interest, which included interest paid on a mortgage secured by a principal residence or a second residence. The underlying mortgage loans could represent acquisition indebtedness of up to $1 million ($500,000 in the case of a married individual filing a separate return), plus home equity indebtedness of up to $100,000.New law. For tax years beginning after Dec.
January 26, 2018 12:00 pm
Published by Mark
Under pre-Act law, interest paid or accrued by a business generally is deductible in the computation of taxable income subject to a number of limitations. For a taxpayer other than a corporation, the deduction for interest on indebtedness that is allocable to property held for investment (investment interest) is limited to the taxpayer's net investment income for the tax year.Code Sec. 163(j) may disallow a deduction for disqualified interest paid or accrued by a corporation in a tax year if: (1...
January 26, 2018 12:00 pm
Published by Mark
Under pre-Act law, the like-kind exchange rule provided that no gain or loss was recognized to the extent that property—which included a wide range of property from real estate to tangible personal property—held for productive use in the taxpayer's trade or business, or property held for investment purposes, is exchanged for property of a like-kind that also is held for productive use in a trade or business or for investment.New law. Generally effective for transfers after Dec. 3...
January 26, 2018 12:00 pm
Published by Mark
The IRS will begin accepting tax returns on Jan. 29. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.Although the IRS will begin accepting both electronic and paper tax returns Jan.
January 26, 2018 12:00 pm
Published by Mark
Starting in 2018, qualified educational expenses for 529 plans will include up to $10,000 a year in tuition and expenses for primary and secondary school expenses (public, private, or religious). Previously, you could only use it towards qualified college expenses. There were also some related changes to ABLE accounts for individuals with special needs.Put simply, you can now pay for up to $10k a year of private K-12 school through a 529 plan.
January 26, 2018 12:00 pm
Published by Mark
Under pre-Act law, the corporate alternative minimum tax (AMT) is 20%, with an exemption amount of up to $40,000. Corporations with average gross receipts of less than $7.5 million for the preceding three tax years are exempt from the AMT. The exemption amount phases out starting at $150,000 of alternative minimum taxable income.New law.
January 26, 2018 12:00 pm
Published by Mark
This year, because the filing date is on April 17 instead of the usual April 15, you have one additional weekend to stress and sweat over your taxes. An extension is your way of asking the Internal Revenue Service for additional time to file your tax return. The IRS will automatically grant you an additional six months to file your return.
January 26, 2018 12:00 pm
Published by Mark
One of the most powerful college savings vehicles is the 529 college savings plan. Your money grows tax-free in those programs as long as you follow all of the relevant tax laws, and they allow you to make significant contributions. There is no maximum annual 529 contribution limit, but there are other factors to keep in mind as you decide how much to save in a 529.The IRS does not set limits on how much you can contribute to a 529 plan.
January 26, 2018 12:00 pm
Published by Mark
Federal Minimum WageThe current federal minimum wage is $7.25 per hour, and has not increased since July 2009. Beginning January 1, 2018, minimum wage rate generally must be paid to workers performing work on or in connection with covered federal contracts of $10.35 per hour and tipped employees performing work on or in connection with covered contracts generally must be paid a minimum cash wage of $7.25 per hour.Ohio State Minimum Wage RatesOhio’s minimum wage increased on January 1, 2018...
January 26, 2018 12:00 pm
Published by Mark
Gross income generally includes the discharge of indebtedness of the taxpayer. Under an exception to this general rule, gross income does not include any amount from the forgiveness (in whole or in part) of certain student loans, if the forgiveness is contingent on the student's working for a certain period of time in certain professions for any of a broad class of employers.New law. For discharges of indebtedness after Dec.
