2018 Year-End Tax Planning
Year-end 2018 presents challenges and opportunities for tax planning that have not been present before. With 2018 seeing the implementation of the vast majority of the Tax Cuts and Jobs Act (TCJA) provisions, tax professionals will have to be ready to adopt new strategies to assist taxpayers in maximizing tax savings under the new laws. The IRS also released guidance on the new provisions that presents opportunities. These changes on top of standard year-end planning, and potential legislation, could make for a busy end to 2018. And now, with the mid-term elections in the rearview mirror, and the House flipping to Democratic control with an expanded GOP majority in the Senate, legislative action during the lame duck session and beyond is unpredictable.Read More
IRS Scams: IRS Sets the Record Straight
To help taxpayers avoid scams in which criminals impersonate IRS employees, the IRS has published a Fact Sheet setting out the ways it does, and does not, contact taxpayers. Since 2013, the Treasury Inspector General reports that more than 10,000 victims have collectively paid over $54 million to scammers posing as IRS officials. IRS impersonation […]Read More
What Do I Do If I Lost an Original Will?
Houstonians lost many valuable papers during the flood of Hurricane Harvey. Some of these papers are relatively easy to replace. But others are not, such as an original will. It can be an expensive nuisance to have a new will prepared. That is one reason why you should keep your original will in a safe […]Read More
PENNIES ON THE DOLLAR!! REALLY??
The radio announcer captures your attention with, “Do you owe more than $10,000 to the IRS? If so, call [XYZ] Company and they will: (1) resolve all your problems, (2) get IRS off your back, and (3) remove most (if not all) of your tax debt.” It sounds too good to be true and it […]Read More
How Does the IRS Choose Who to Audit?
An IRS audit is an in-depth review of your tax return during which the IRS makes sure you are in strict compliance with the tax law and have documentation for every deduction you claimed. If not, they will disallow it and assess you back taxes, interest, and penalties. Penalties apply if the tax deficiency […]Read More
Differences Between a Tax Attorney and a Tax Accountant
People are often confused over whether to hire a tax attorney or a tax accountant to handle their tax issues. In many cases, the roles these individuals play can overlap. They both know a lot about taxes, charge about the same, and have a professional license. However, these professions have distinct roles. In some […]Read More
Highlights of the Tax Cuts and Jobs Act.
Changes Affecting Individuals New Income Tax Rates & Brackets. For tax years 2018 through 2025, seven tax rates apply for individuals: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The tax rates for estates and trusts are: 10%, 24%, 35%, and 37%. An individual reaches the highest tax rate at taxable income of $500,000 ($600,000 […]Read More
Changes Affecting Estates and Trusts
The new Tax Cuts & Jobs Act signed by the President on December 22, 2017 contains several key estate and trust provisions. Keep in mind that these changes only apply in 2018 through 2025. Among the changes affecting estate planning are: Increased Estate, Gift, and GST Tax Exclusion/Exemption. The new law doubles the estate, gift, […]Read More
New 20% Deduction for Pass-Through Entities
Starting in 2018, taxpayers are allowed a deduction equal to 20 percent of the lesser of a) their “qualified business income” from partnerships, S corporations, LLCs, and sole proprietorships, or b) their taxable income. The income must be from a domestic business. Therefore, investment income (i.e. interest, dividends, royalties, etc.) does not qualify. Nor do […]Read More
Changes Affecting Businesses
Below are just a few of the many changes affecting businesses. Corporate Tax Rates Reduced. For tax years beginning after Dec. 31, 2017, the corporate tax rate is a flat 21% rate. This applies to personal service corporations, as well, which are subject to a maximum corporate tax rate of 35% before 2018. Personal service […]Read More