Flow-through planning. The activities, income, and deductions of partnerships, S corporations, and sole proprietorships flow through to their owners and impact the owners’ individual tax returns. In addition to planning related to incurring expenses or deferring income, the new tax law creates a new deduction for certain qualified business income (“QBI”) from a pass-through business.
November 2, 2018 12:00 pmAs the end of another year approaches, it’s time to start thinking about ideas which may help lower your tax bill. When discussing ideas and tips with your tax advisor, it’s wise to remember a few things:This year’s tax planning might be less exact than in past years, as everyone is still working on understanding the intricacies of the tax law enacted in December 2017;Year-end tax planning can go beyond just reducing this year’s tax bill, it can include looking into future years as well;Planning...
November 2, 2018 12:00 pmOne 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 pmUnder pre-Act law, a net operating loss (NOL) may generally be carried back two years and carried over 20 years to offset taxable income in such years. However, different carryback periods apply with respect to NOLs arising in different circumstances. For example, extended carryback periods are allowed for NOLs attributable to specified liability losses and certain casualty and disaster losses.New law. For NOLs arising in tax years ending after Dec.
January 26, 2018 12:00 pmUnder 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 pmStarting 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 pmUnder pre-Act law, depreciable assets used in agriculture activities that are assigned a recovery period of seven years include machinery and equipment, grain bins, and fences (but no other land improvements), that are used in the production of crops or plants, vines, and trees; livestock; the operation of farm dairies, nurseries, greenhouses, sod farms, mushrooms cellars, cranberry bogs, apiaries, and fur farms; and the performance of agriculture, animal husbandry, and horticultural services. C...
January 26, 2018 12:00 pmMoving Expenses Deduction SuspendedUnder pre-Act law, taxpayers could claim a deduction under Code Sec. 217 for moving expenses incurred in connection with starting a new job if the new workplace was at least 50 miles farther from a taxpayer's former residence than the former place of work.New law. For tax years beginning after Dec.
January 26, 2018 12:00 pmFederal 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 pmThe cost recovery periods for most real property are 39 years for nonresidential real property and 27.5 years for residential rental property. The straight line depreciation method and mid-month convention are required for such real property.Under pre-Act law, qualified leasehold improvement property was an interior building improvement to nonresidential real property, by a landlord, tenant or subtenant, that was placed in service more than three years after the building is and that meets other ...
January 26, 2018 12:00 pm
