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How the New Limit on SALT Deductions Affects Homeowners

Homeowners

The new tax law limits state and local deductions that homeowners can claim.

 The ability to deduct state and local taxes (SALT) has historically been a valuable tax break for taxpayers who itemize deductions on their federal income tax returns. Unfortunately, the Tax Cuts and Jobs Act (TCJA) limits SALT deductions for 2018 through 2025. Here’s important information that homeowners should know about the new limitation. Read more

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Understanding 401(k) Plan Fees and Expenses

401(k)

401(k) plan fees and expenses generally fall into three categories.

Plan sponsors face many challenges. One of the biggest is determining their 401(k) plan’s total cost, including the cost of investment management, plan administration and participant services. Fees and costs associated with a retirement plan’s investments are inevitable. However, ERISA requires that any compensation paid to any service provider — including an investment provider, manager or adviser — be reasonable. Read more

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New Law Gives Eligible Pass-Through Businesses a Special Tax Break

Pass-Through Businesses

A new tax break has been created for pass-though businesses.

Federal income tax rates for C corporations have been reduced to a flat 21%, starting in 2018 under the Tax Cuts and Jobs Act (TCJA). But what about pass-through businesses?

Congress devised a special tax break for pass-through businesses to help achieve parity between the reduced corporate income tax rate and the tax rates for business income that pass through to owners of sole proprietorships, partnerships, S corporations and limited liability companies (LLCs), which are treated as sole proprietorships or partnerships for tax purposes.

But not every pass-through entity is eligible for the break — and it isn’t always 20%. Here’s an overview of how much this deduction can amount to and which types of income count as qualified business income (QBI) under the new tax law. Read more

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Important Tax Figures for 2018

Federal tax information

From Social Security to estate taxes, see how tax figures compare from 2017 to 2018.

The following table provides some important federal tax information for 2018, as compared with 2017. Many of the dollar amounts are unchanged and some changed only slightly due to inflation. Read more

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Pennsylvania Consumer Use Tax Notification and Reporting Election and Penalty

On December 22, 2017, the Pennsylvania Department of Revenue issued Corporation Tax Bulletin 2017-02 in which it announced that marketplace facilitators, referrers and remote sellers have until March 1, 2018, to elect for this year to either comply with Pennsylvania’s new consumer use tax notification and reporting regime or to voluntarily collect and remit Pennsylvania sales-and-use tax. 

In other words, if you do not have sales tax nexus in Pennsylvania but otherwise are producing taxable sales within the Pennsylvania state border, the state is now requiring certain information to be reported to both the consumer and the state in order to better ensure that the required Pennsylvania use tax is being reported and collected to the state.  

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I Married a Non-Resident, Non-Citizen…now what?

non-resident

Your tax status changes when you get married, especially if your new spouce is a not a US resident.

By Bethany Bouw

In the flush of love and planning a wedding, perhaps the last thing on your mind was how the marriage might impact your income tax filings going forward. You were probably so busy planning how to deal with the immigration paperwork so you could simply reside in the same nation, that you may have not given your tax situation much thought. We at Ryan & Wetmore are here to help with some filing tips to get you started in the right direction.  These eight tips will help clear things up for you, so you can get back to focusing on your new spouse instead of your new tax status! Read more

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Foreign Trust Annual Reporting – Who, What, When, Where, Why?

Foreign Trust

Reviewing the Who, What, When, Where, and Why of foreign trust reporting.

By Bethany Bouw

Perhaps you remember from grade school considering the five W questions for a topic to make sure you really comprehended the material. Well, foreign trust reporting (Form 3520-A) is a topic that deserves this treatment to make sure you do not miss a crucial step and end up with a late filing. Let’s walk through the five W’s together: Read more

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Legislative Alert: Congress Passes Budget Bill With Wins For Medical Groups

Overnight, Congress passed a sweeping two-year budget deal signed into law by President Trump today. The Bipartisan Budget Act of 2018 (H.R. 1892) is largely a win for physician practices. The law addresses top MGMA priorities, including reducing burden in the MIPS program, eliminating the unelected Medicare cost-cutting board known as the IPAB, and averting a flawed misvalued-code policy that would have resulted in drastic across-the-board payment cuts in 2019 and 2020.

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The Tax Incentives Keeping The LED Lights On

Q&A with: David Diaz, Managing Partner at Walker Reid Strategies

As energy efficiency initiatives become common procedure for new construction, many in the real estate and construction industries could be eligible for tax incentives but not taking advantage of them. For a closer look at the cost saving opportunities for real estate operators and contractors, we spoke with David Diaz, Managing Partner with Walker Reid Strategies, a BDO Alliance firm specializing in energy efficiency and specialty tax services. Read more