After over 30 years of little changes to the tax code, the “Tax Cuts and Jobs Act” (H.R. 1) delivered a major change to the law for 2018. The changes affect both individuals and business owners, so careful planning and analysis are needed to make the right financial choices. We have compiled the best coverage of the tax reform issues below. Feel free to bookmark this page as we will continue to update with new content throughout the year.
State Tax Issues
Two States Cut Taxes Due to Federal Tax Reform – 03/19/2018
Tax Reform Limits Exchanges To Defer Taxes – 3/8/18
Beginning in 2018, Sec. 1031 exchanges will only be allowed for exchanges of real property that is not held primarily for sale. Learn the tax ramifications. 03/08/2019
Tax Reform Adds New Perks to Able Accounts – 3/1/18
If You Care for a Disabled Person, Tax Reform Has Added New Perks To Able Accounts 03/01/2018
Is Bunching Right For You? – 2/27/2018
With tax reform limiting some deductions, bunching deductions into one year has become a legitimate tax planning strategy. Learn how to use the tax code to your advantage.
Living Abroad? Here Is How Tax Reform May Affect You – 2/22/2018
Expats have some of the toughest tax laws to comply with. And with that, draconian penalties if they make a mistake. So how did tax reform changes affect expatriates?
Do You Have Accumulated Deferred Foreign Income? Time To Pay Up! – 2/19/2018
If you are a shareholder in a controlled foreign corporation (CFC), tax reform has changed the way you are taxed. There are a few options for tax planning.
Tax Reform Puts A Cap On Deducting Business Losses– 2/15/2018
The tax reform legislation but a crimp in deducting business losses. This does not mean that no losses are allowed, but they generally are now limited to $250,000 ($500,000 for married couples filing jointly).
Surprise! Extender Bill Passed: Do You Benefit? – 2/12/2018
Changes to the 2017 tax law came in a surprise addition to the recent budget. These so-called, tax extenders, apply to both individuals and small business owners. The IRS will actually need to change current forms and some that already filed will need to amend their returns to take advantage of the changes.
Business Owners Beware – New Tax Law Severely Limits Entertainment Deductions – 2/09/2018
A not so popular change brought by the “Tax Cuts and Jobs Act” are the changes covering business entertainment expenses. This means you can no longer deduct 50% of the cost of that entertainment as a business expense, making it more costly for you to entertain clients. But, there are some options depending on how you conduct the meeting.
Personal Casualty Losses Axed By The New Tax Law – 2/07/2018
After a year of horrific hurricanes, fires, and natural disasters, the Federal Government changed the tax law in regards to tax treatment of casualty and disaster losses. The important change is whether the loss was covered in a Presidentially declared disaster area. It is an important distinction to understand.
Employee Business Expenses & Tax Reform – 2/06/2018
The tax reform provisions will hit employees (W-2 wage earner) that incur substantial business-related expenses the most. These changes are effective in 2018 and you may want to talk to your employer about alternative compensation arrangements.
Tax Reform Cracks Down On IRA Recharacterizations – 2/01/2018
If you use a traditional IRA or Roth IRA for retirement savings, tax reform made some changes you need to be aware of. This overview provides some insight on what changed and some alternative strategies.
What Does Tax Reform Mean to Business Owners? – 1/30/2018
Now that tax reform is a reality, business owners of all shapes and sizes need to review their business structure and the possible tax ramifications. This article reviews the different possibilities for pass-through entities. These are complicated calculations and expert advice is highly recommended.
Medical Deductions; The New Tax Law – 1/23/2018
The Tax Cuts and Jobs Act retained the medical deduction going forward, but with some new caveats. If you have high medical costs there are some planning strategies you can use to make sure you maximize your possible tax savings.
Employee Tax Issues
The TCJA’s Significant Tax Benefits for Employees Who Become Contract Workers – 1/17/2018
The Tax Cuts and Jobs Act changed the rules on reimbursed expenses and is causing many to consider working as a sole proprietor. This is a significant issue that includes some risk, both from the loss of job security and potential compliance issues with the IRS. This overview from the Tax Policy Center goes over the top level issues.
Home and Mortgage
New Tax Law Cracks Down On Home Mortgage Interest – 1/16/2018
The Tax Cuts and Jobs Act made significant changes to the deductibility of home mortgage interest. This includes changes to the primary and secondary home limitations. If you own a home or secondary homes, it is important to understand how these tax law changes will affect you.
Will Your 2018 Withholding Be Right? – 1/15/2018
The big promise of the new tax reform legislation is the bump in pay coming from the lower tax rates. The IRS recently released the new withholding tables that will allow taxpayers to adjust their take-home pay.
2018 Standard Mileage Rates Announced – 1/11/2018
The IRS updated the inflation-adjusted standard mileage rates for 2018. Tax reform has also brought into consideration new employee/business relationships when it comes to reimbursable expenses.
2018 Pocket Tax Guide Online Edition – 1/9/2018
Feel free to bookmark the ultimate guide to the recent tax law changes and updated tax and financial tables. This 7-page guide can be referenced for many taxes and financial questions that arise throughout the year.
State Tax Issues
State Strategies to Preserve SALT Deductions for High-Income Taxpayers – 1/05/2018
High taxed states have been on the defensive on how they can answer the new federal limits on state and local tax deductions. States like New York, New Jersey, and California have been very vocal about changes in the state code that would provide resident taxpayers some relief from these lost deductions. Tax Foundation has compiled an overview of the different proposals and whether they are feasible.
Tax Reform and Your Taxes – 12/26/2017
This excellent review, details the new tax rates, deductions, credits and more from the Tax Cuts and Jobs Act. The article is geared for individual taxpayers.
Tax Reform Special Report – 12/17/2017
This unique side-by-side comparison of the old tax code to the new code has been a great reference for taxpayers and business owners. The table highlights the predominate changes and makes it easier to see how the law changes might affect you.