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Tax Reform: Which Changes Are Temporary vs. Permanent?

Tax Reform Changes

It’s hard to keep track of what aspects of the new tax law are permanent and which changes are scheduled to expire at the end of 2025

The Tax Cuts and Jobs Act (TCJA) includes a bevy of important tax changes for individuals and businesses. However, it’s sometimes hard to keep track of which changes are permanent and which are scheduled to expire at the end of 2025 — unless Congress extends them.

Here’s a scorecard to help you keep track of the permanent vs. temporary changes as the tax law currently stands.  Read more

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Calculating Deductions for Business Interest Expense

interest expense

The Tax Cuts and Jobs Act generally limits business interest expense deductions for businesses with average annual gross receipts over $25 million, with a few industry-specific exceptions.

One of the most complicated provisions of the Tax Cuts and Jobs Act (TCJA) is the new limitation on deductions for business interest expense. At face value, this limitation seems straightforward, but the devil is in the details. Read more

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Effects of the Tax Law Vary Based on Major Life Events

Tax Law

The Tax Cuts and Jobs Act affects everyone differently depending on their specific life circumstances.

Change is part of life. The Tax Cuts and Jobs Act (TCJA) has brought sweeping changes to the federal income tax rules for individuals. But how will you and your family be affected? That depends on your specific circumstances. Major life changes — from marriage and birth to divorce and death — can provide opportunities and pitfalls under the tax law. Here’s an overview of some TCJA provisions that may be relevant during different life events. Read more

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Tax Issues To Watch for When Planning for Your Business in 2018

Tax Issues

Although many businesses and owners expect to owe less federal income tax in 2018, the impact of the new law depends on your specific circumstances.

The Tax Cuts and Jobs Act makes sweeping changes. But some of the new provisions won’t necessarily be relevant to your situation. Here’s a quick reference guide to the major changes under the new law to help you understand what’s changing.

In general, these changes are effective for tax years beginning after December 31, 2017. For businesses, these changes are permanent, unless otherwise noted. Read more

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6 Cool Ways to Save Taxes during the Hot Summer Months

Save Taxes

The tax rules underwent a major overhaul last winter. Here are some ideas for individuals and small business owners to consider in the summer months.

The Tax Cuts and Jobs Act (TCJA) may have put a crimp in some of your summer plans by eliminating or scaling back certain tax breaks. But individuals and small business owners still have plenty of opportunities to save taxes. Here are six ideas to consider this summer. Read more

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Tax Cut Law: Mostly Good News for Employers and Employees

Tax CutThe most immediate concrete change the Tax Cuts and Jobs Act (TCJA) will bring about for employers is new payroll tax withholding rates. Here’s the latest word from the IRS: “We anticipate issuing the initial withholding guidance in January reflecting the new legislation, which would allow taxpayers to begin seeing the benefits of the change as early as February. The IRS will be working closely with the nation’s payroll and tax professional community during this process.” Read more

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Defaulting on Retirement Plan Loans Causes Taxable Distributions

Retirement Plan Loans

Not repaying retirement plan loans can lead to major tax consequences.

Want to borrow money from your retirement plan? Not so fast. Retirement plan loans can be a viable way to get money in a crunch, but you need to follow the rules about repaying them. If you don’t, it could lead to unfavorable tax consequences, as two taxpayers recently learned the hard way in U.S. Tax Court. Read more

Christine Hradsky No Comments

Rx for Itemizing Medical Expenses

Itemizing Medical ExpensesMedical expenses can be costly — and they’re not always covered by insurance. But there may be a silver lining: You may be able to claim an itemized deduction for the amounts you pay for medical, dental and vision care, if you incur enough costs to exceed the applicable threshold for the tax year. Here are the details about this deduction. Read more