Tax Reform
We’re answering your questions on how the Tax Cuts and Jobs Act are affecting you; as individuals, businesses and C-Corporations.
Tax Cuts and Jobs Act
The House of Representatives and Senate have both passed the “Tax Cuts and Jobs Act.” The compromise bill includes agreements on corporate and individual tax rates, the treatment of pass-through income, the estate tax, and itemized deductions such as those for mortgage interest and state and local taxes, among other areas. President Trump is expected to sign this legislation into law this week.
Tax Cuts and Jobs Act Yearend Tips
President Trump signed the TCJA into law on Friday, December 22, 2017.Cautionary notes:
The specific applications and appropriateness of these general comments will vary, based on individual circumstances. You should consult your tax adviser before undertaking any of the tactics discussed below.
Withholding Guidance
On December 26, the IRS issued guidance on withholding, in light of changes to withholding tables and systems needed to conform with the Tax Cuts and Jobs Act, effective January 1, 2018. Please see the language from the IRS Statement below.
Tax Reform Hot Topic: The Section 199A Pass-Through Deduction
The part of the new Tax Cuts and Jobs Act (“TCJA”) about which we at HM&M have received the most inquiries is the new “pass-through” deduction provided by Section 199A of the Internal Revenue Code. Section 199A is in effect for years from 2018 through 2025.
Tax Reform Hot Topic: Meals and Entertainment
Question:Are Business-Related Meals and Entertainment Still Deductible?
Answer: Fifty percent of all costs of reasonable business-related meals are deductible. Some exceptions exist. Except for limited situations and categories of expenses, entertainment costs are not deductible.
Here are the presentation slides we have put together on the major changes from the Tax Cuts and Jobs Act and how these changes are affecting individuals, businesses, C-Corporations, and a variety of other topics.
Here are the presentation slides we have put together on the 199A – Passthroughs Tax Deduction.
Tax Strategy: Bunching Itemized Deductions
In the past (as recently as 2017), particularly in Texas, some people regularly paid two years of property taxes (“bunching” the two years’ worth of deductions) in Year One and itemized their personal deductions in Year One.
Tax Strategy: Qualified Charitable Distributions
Individuals may distribute up to $100,000 tax-free from their IRAs to certain charitable organizations.
Qualified Opportunity Funds – A New Investment Vehicle from the TCJA
A new Qualified Opportunity Zone (“QOZ”) program to encourage investment in low-income communities (“LICs”) is part of the massive tax law enacted in December 2017 that is often referred to as the Tax Cuts and Jobs Act of 2017 (“TCJA”).
Tax Strategies for Businesses – Part 1
The recently enacted Tax Cuts and Jobs Act (TCJA) has altered the tax landscape for a lot of businesses.
Tax Strategies for Individuals – Part 1
Given the increased standard deduction for 2018 will you still be eligible for itemizing your deductions? If the total of your allowable itemized deductions exceeds the standard deduction you should still keep track of your expense documentation for support in deducting those amounts on your tax return.
Tax Strategies for Businesses – Part 2
The recently enacted Tax Cuts and Jobs Act (TCJA) has altered the tax landscape for a lot of businesses.
Tax Strategies for Individuals – Part 2
The Tax Cuts and Jobs Act enacted in 2017 has many changes that could affect individuals’ Federal tax liability in 2018.
Recent Tax Development Impacting Nonprofit Organizations
On May 22, 2018 Randy Garcia spoke at the TSCPA 2018 Nonprofit Organizations Conference and shared some important information concerning the new tax laws and nonprofit organizations.
Income Tax Planning for Individuals: Effects of the Tax Cuts and Jobs Act
On August 3, 2018 Vance Maultsby spoke at the 34th annual Fort Worth CPA Tax Institute and shared some practical information regarding tax changes that may affect individual income taxation.
Section 199A Proposed Regulations Have Finally Arrived!
The Proposed Regulations will affect individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses.
Qualified Opportunity Zones
An Introduction to a New Tax Incentive for Investors.
3 strategies that can be used to increase your charitable giving “bang for the buck”
We may be able to help you cut the costs of charitable giving – or increase the size of your contributions without costing any more in after-tax dollars – in part due to the new Tax Cuts and Jobs Act of 2017 (“TCJA”). Taking action before yearend could mean a quick return on your efforts.
IRS Says No “Clawback” When Estate and Gift Tax Basic Exclusion Amount Reverts to Old Limits
The Tax Cuts and Jobs Act temporarily doubled the value of assets that can be transferred without triggering estate or gift tax. Commentators and our clients have been asking whether the Internal Revenue Service (IRS) might “claw back” the benefits of the higher basic exclusion amount (BEA) once the increase “sunsets” at the end of 2025 and the BEA reverts to the lower amounts.
IRS Releases New Round of Qualified Opportunity Zone Proposed Regulations – Observations Regarding Certain Key Provisions
April 17, 2019, the U.S. Treasury and the Internal Revenue Service (IRS) published a 169-page document setting forth a second round of proposed regulations regarding the new Qualified Opportunity Fund (“QOF”) investment vehicle. Generally, these new proposed regulations are taxpayer-friendly, instructive, and should promote investments in low-income communities. After a quick refresher on the QOF program, this paper gives an overview of some of the key provisions in the new proposed regulations.
What You Now Need To Know About Meal, Travel, and Entertainment
When owners, managers and salespeople attend trade shows, call on customers or evaluate suppliers, they may incur meal, travel, and entertainment expenses. This article explains that many of these expenses may be deductible if they’re properly substantiated, but some of the rules have changed under the TCJA.
Excess Business Loss Rule May Be Unfavorable To You
Sole proprietorships and pass-through entity structures, which include partnerships, S corporations and certain limited liability companies (LLCs), provide owners with some valuable tax benefits, such as avoidance of double taxation and the potential ability to deduct losses from the business on their individual tax returns. But the Tax Cuts and Jobs Act (TCJA) has placed some limitations on deducting business losses. This article looks at the changes in the rules and how they affect sole proprietors and owners of pass-throughs.
The TCJA Limit on Interest Expense Deductions
The TCJA introduced a variety of tax benefits for businesses. At the same time, the act placed limits on several tax breaks, including the amount of interest expense a business may deduct. This article takes a closer look at the business interest limit and possible exemptions and opt-outs.
Tax Cuts and Jobs Act – Overview
§199A Pass-through Deduction
March 16, 2018
Vance Maultsby, CPA, discusses the new Entertainment & Meals expense rules under the Tax Cuts and Jobs Act.
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February 19, 2018
Carrie Reese, CPA discusses Changes in Itemized Deductions due to the Tax Cuts and Jobs Act
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January 18, 2018
Daryl L. Leick, CPA, discusses Excess Business Losses, a new provision from the Tax Cuts and Jobs Act of 2017.
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