Under pre-Act law, special rules applied to certain payments to institutions of higher education in exchange for which the payor receives the right to purchase tickets or seating at an athletic event. The payor could treat 80% of a payment as a charitable contribution where: (1) the amount was paid to or for the benefit of an institution of higher education (i.e., generally, a school with a regular faculty and curriculum and meeting certain other requirements); and (2) such amount would be allow...
January 26, 2018 12:00 pm
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
Under pre-Act law, an additional first-year bonus depreciation deduction was allowed equal to 50% of the adjusted basis of qualified property, the original use of which began with the taxpayer, placed in service before Jan. 1, 2020 (Jan. 1, 2021, for certain property with a longer production period).
January 26, 2018 12:00 pm
Under pre-Act law, the net income of these pass-through businesses— sole proprietorships, partnerships, limited liability companies (LLCs), and S corporations—was not subject to an entity-level tax and was instead reported by the owners or shareholders on their individual income tax returns. Thus, the income was effectively subject to individual income tax rates.New law. Generally for tax years beginning after Dec.
January 26, 2018 12:00 pm
Saving for college in a 529 plan has many benefits; ranging from the power of compound interest, a wide variety of investment options, tax-free earnings, and tax-free withdrawals. For Ohioans saving with Ohio’s 529 Plan, there’s also a deduction from their state taxable income for contributions made to CollegeAdvantage. Since 2000, the yearly deduction has been set at a maximum of $2,000 per account but the New Year brings a big change to this Ohio tax deduction.Beginning on Jan.
January 26, 2018 12:00 pm
Under pre-Act law, alimony and separate maintenance payments were deductible by the payor spouse under Code Sec. 215(a) and includible in income by the recipient spouse under Code Sec. 71(a) and Code Sec.
January 26, 2018 12:00 pm
Under pre-Act law, higher-income taxpayers who itemized their deductions were subject to a limitation on these deductions (commonly known as the “Pease limitation”). For taxpayers who exceed the threshold, the otherwise allowable amount of itemized deductions was reduced by 3% of the amount of the taxpayers' adjusted gross income exceeding the threshold. The total reduction couldn't be greater than 80% of all itemized deductions, and certain itemized deductions were exempt fr...
January 26, 2018 12:00 pm
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
The alternative minimum tax (AMT) is a tax system separate from the regular tax that is intended to prevent a taxpayer with substantial income from avoiding tax liability by using various exclusions, deductions, and credits. Under it, AMT rates are applied to AMT income determined after the taxpayer “gives back” an assortment of tax benefits. If the tax determined under these calculations exceeds the regular tax, the larger amount is owed.In computing the AMT, only alternative minimu...
January 26, 2018 12:00 pm
Under pre-Act law, taxpayers determined their taxable income by subtracting from their adjusted gross income any personal exemption deductions. Personal exemptions generally were allowed for the taxpayer, the taxpayer's spouse, and any dependents. The amount deductible for each personal exemption was scheduled to be $4,150 for 2018, subject to a phaseout for higher earners.New law.
January 26, 2018 12:00 pm
