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The corporate AMT has been repealed by the TCJA. Congress has eliminated this tax for Corporations ONLY.
The recently enacted Tax Cuts and Jobs Act (TCJA) has altered the tax landscape for a lot of businesses. The changes are extensive, and this blog provides a high-level overview of some of the highlights to keep you informed. Due to the sweeping nature of the changes and the need for continued guidance, we’d like the opportunity to have a personalized conversation with you now to discuss planning opportunities for your specific situation. Additional conversations and tax projections are likely necessary to ensure we maximize your tax benefits. Please call our office at your earliest convenience to schedule a meeting.
Please call our office to schedule a planning meeting.
The Tax Cuts and Jobs Act (TCJA) includes several changes that affect partnerships and their partners, and LLCs that are treated as partnerships for tax purposes and their members. Some good some not so good! We are at your disposal to identify opportunities within the new law that apply to you and help steer you away from new pitfalls and challenges. Please call our office today at 262-358-8297 to set up a tax planning meeting.
The Tax Cuts and Jobs Act (TCJA) disallows all miscellaneous itemized deductions subject to the 2% floor for the tax periods 2018-through 2025. What does this mean for the Home Office Deduction during the aforementioned tax periods?
Company Employees who work from home will no longer be eligible to deduct any home office expenses as in past years. In prior years, all the expenses that went into making the home office space comfortable from the paint to the furniture were deductible as home office expenses. Now you will be working from home for the pure convenience of it, no more perks for the next 7 years (including the current year)!
Good News for those Self Employed- You can still deduct eligible home office expenses against your self-employment income.
The recently enacted Tax Cuts and Jobs Act (TCJA) has altered the tax landscape for a lot of individuals and businesses. The changes are extensive and this blog provides a high-level overview of some of the highlights to keep you informed. Due to the sweeping nature of the changes and the need for continued guidance, we’d like the opportunity to have a personalized conversation with you now to discuss planning opportunities for your specific situation. Additional conversations and tax projections are likely necessary to ensure we maximize your tax benefits. Please call our office at your earliest convenience to schedule a meeting.
Here’s how the TCJA applied its tax reform to your supper money meal allowances. Before tax reform, you deducted 100 percent of the supper money cost. Now, because of tax reform, your tax deduction for supper money is subject to a 50 percent cut for amounts paid during tax years 2018 through 2025.
More Like... When people believe tax season is over after April 15, but its actually October 15 (contingent upon 15th falling on a weekday and non holiday.
The Partnership Representative
The Partnership Representative is the sole individual (or entity) with the ability to act on behalf of the partnership in relation to the IRS. The Partnership Representative has significant authority to bind both the partnership and the partners in administrative proceedings and judicial actions. Partners do not have the ability to appeal or challenge the decisions of the Partnership Representative, but are still generally required to report consistent with the positions and allocations determined by the partnership.
While the broad authority of the Partnership Representative cannot be limited by the partnership agreement from the IRS’s perspective, provisions should be put in place to outline decision-making procedures and to require the Partnership Representative to follow such decisions. The following is a brief list of topics to consider when drafting provisions addressing the Partnership Representative:
Selection: Because of the significant authority vested in the Partnership Representative, care should be taken in this appointment and the partnership should include provisions either naming the Partnership Representative or providing a clear mechanism for appointing the Partnership Representative, especially in the event the Partnership Representative is removed, resigns or becomes incapacitated. Unlike the TMP, the Partnership Representative is not required to be a partner in the partnership.
Limits on Decision-making Authority: The partnership may want to include procedures for pre-approving the decisions of the Partnership Representative made in connection with an audit and establish communication requirements between the Partnership Representative and the partnership’s management or partners. While any such limitations are contractual in nature and not binding on the IRS, such procedures can provide additional protections for the partners.
Standards of Care and Indemnification: Standards of care and indemnification of managers and partners are functions of state law. Currently, there is no specific statutory indemnification of a Partnership Representative. However, with significant authority comes a great deal of risk for the Partnership Representative. Appropriate standards of care and indemnification provisions should be included in the partnership agreement in order to afford the Partnership Representative a certain level of protection from claims made by disgruntled partners or former partners.
Capital Gains is defined as selling an asset for more then your purchase price, which will make a Capital loss the exact opposite. Capital Gains occur on personal and business assets. If you buy a Tractor for $10,000 and sell a few months later for $15,000 you have a Capital Gain. Now if you sell the asset for less then $10,000 you have a Capital Loss.
The length of time matters when dealing with Capital Gains. If you hold the asset for over a year it is a long term Capital Gain and is taxed at a lower rate. Whereas if you sell the asset like the example above you have a Short term Capital Gain and it is taxed at a higher rate.
The 2018 Tax Rate for Long Term Capital Gains are taxed 0%-20% depending on your filing status and Income, Whereas Short Term Capital Gains are taxed at 10%-37% depending on your filing status and Income. Therefore, it is advantageous to hold your item for over a year therefore you will benefit from the lower tax bracket.
In the event that Holding the asset for more than one year isn't possible here are some strategies to reduce your tax liability.
As of January 2, 2018 there is a new and improved Section 179 deduction, thanks to the TCJA.
Section 179 was retroactive to 09/27/2017, which means most of you who have depreciable assets have benefited from this change on your 2017 tax return. What is great about Section 179 is it is like having a flexible tax shelter in your back pocket for when you need it for depreciable assets, but it doesn't have to be used.
The Section 179 deduction is available for both new and used assets (same as prior years) and offers you deduction flexibility. You have up to $1 million in Section 179 deduction availability. You also have new Section 179 qualifying asset possibilities such as
The big advantage to Section 179 deductions over bonus depreciation is flexibility. But bonus depreciation has its place as a tax strategy.
United States revenue stamps for the motor vehicle use tax were used from February 1942 through June 1946. During World War II, there were serious wartime shortages, including gasoline. The US government imposed the motor vehicle use tax to encourage people to use public transportation and to help pay for the war efforts. The cost for these stamps were 42 cents per month or $5 per year. These stamps were placed on the inside windshield as evidence of the payment of such tax. These stamps were expensive considering the national minimal wage was 52 cents per hour.
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Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.
Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.