Latest News

More Give in the Gift Tax

The Tax Cuts and Jobs Act of 2017 increased the federal estate tax exemption to $11.18 million for 2018. That’s per person, so the combined exemption for a married couple can be as much as $22,360,000 worth of assets this year. The same ceilings apply to the federal gift tax, which offsets the estate tax. Example 1: Mona McAfee plans to give $20,000 to her son Luke this year. Does that mean that... Read More

Supreme Court Decision on Sales Tax for Online Retailers

Earlier today, the Supreme Court of the United States released its highly anticipated decision on South Dakota v. Wayfair. The court upheld South Dakota’s ability to collect and remit sales tax from online retailers that do not have a physical presence in the state. The decision effectively reverses the ‘physical test’ precedent set in Quill Corp. v. North Dakota (1992), which... Read More

Deducting Expenses for Business Use of your Home

The home office deduction is one of the most overlooked deductions by small business owners and those that are self-employed. If the expenses associated with the business use of your home qualify for the deduction, it can prove to be beneficial. Various criteria must be met in order for a taxpayer to take the Home Office Deduction. In order to deduct expenses for the business use of a home those... Read More

Tax Cuts and Jobs Act – Foreign-Derived Intangible Income

In our most recent blog about The Tax Cuts and Jobs Act (“the Act”) with an international focus, we had to talk about mandatory repatriation which is one of the few provisions effective for the 2017 tax year. However, we are back with some good news! For C Corporations, the Act introduces IRC Section 250 that provides for a deduction centered around Foreign-Derived Intangible Income. What exactly... Read More

Now Is the Time to Review Your Tax Outlook With the TCJA in Mind

The Tax Cuts and Jobs Act has brought about many changes to exemptions and deductions that were once so advantageous to individual taxpayers. These modifications mean that individuals with more complex tax situations, such as two income providers or multiple sources of income, really need to evaluate their withholding and/or estimated tax payments for the 2018 filing year. These types of taxpayers may be more... Read More

June/July Dates to Remember

June 15 Individuals. If you are not paying your 2018 income tax through withholding (or will not pay enough tax during the year that way), pay the second installment of your 2018 estimated tax. Corporations. Deposit the second installment of estimated tax for 2018. Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in May if the monthly... Read More

Avoiding the Warm Weather Slow Down in Business

During the summer, it may be true that “the living is easy,” as the old song goes. The midyear season, though, is often not so easy at small businesses because many employees are taking vacations. Total work hours often shrink and so may company productivity. Spreading vacation time over the rest of the year might not be practical, especially if many of your workers have school-age children and... Read More

Planning to Reduce Market Impact on Retirement Plans

We have seen an increase in market volatility in early 2018. A steep pullback in stocks could be good news for working people who are building retirement funds, but those approaching or recently beginning retirement might be hurt. Historically, stock market setbacks have proven to be buying opportunities for patient investors. Example 1: Harry Walker was 50 years old in 2008, with most of his retirement... Read More

Home Equity Loans May Still be Deductible

The Tax Cuts and Jobs Act of 2017 affected the tax deduction for interest paid on home equity debt as of 2018. Under prior law, you could deduct interest on up to $100,000 of home equity debt, no matter how you used the money. The old rule is scheduled to return in 2026. The bad news is that you now cannot deduct interest on home equity loans or home equity lines of credit if you use the money for college... Read More