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IRS Clarification: Home Equity Loan Interest May Still Be Deductible

Home Equity LoanThe IRS recently announced that in many cases, taxpayers can continue to deduct interest paid on home equity loans. The tax agency issued the clarification because there were questions and concerns that such expenses were no longer deductible under the Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, 2017. Read more

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Tax Extensions- FAQ

Tax extensions

You may have to file for an extension on your taxes. Let’s take a look at some of the most frequently asked questions about extensions.

Your CPA tells you it’s best to ‘extend’ your tax return. What does that actually mean for you? The AICPA has provided a list of seven frequently asked questions and answers. Read more

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Contractors, Don’t Wait To Act On Revenue Recognition

By Jody Hillenbrand and Luis Torres

Jan. 1, 2019, is quickly approaching. For most privately held construction companies, this is the implementation deadline for the new revenue recognition standard, Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. The time to act is now, especially for contractors with projects lasting over 12 months. A contract that starts now, but extends into 2019, will be subject to the new standard.  Read more

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What Tax Reform Means For Healthcare Entities: For-Profit & Non-Profit

HEALTHCARE EntitiesOn Dec. 22, 2017, President Trump signed sweeping tax reform, formerly known as the Tax Cuts and Jobs Act, into law, marking the largest change to U.S. tax policy in decades.

What changes are coming for healthcare companies?

To help organizations navigate the issues most impactful and urgent to the healthcare industry, we’ve prepared a summary of the major implications based on the signed legislation. Read more

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How the New Tax Law Affects Rental Real Estate Owners

Rental Real Estate

Owners of rental real estate should be aware of the tax changes due to the new law.

Do you own residential or commercial rental real estate? The Tax Cuts and Jobs Act (TCJA) brings several important changes that owners of rental properties should understand.

In general, rental property owners will enjoy lower ordinary income tax rates and other favorable changes to the tax brackets for 2018 through 2025. In addition, the new tax law retains the existing tax rates for long-term capital gains. (See “Close-Up on Tax Rates” in the right-hand box.) Read more

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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