Newsletters

Tax-exempt Organizations to Pay UBIT for Providing Parking Benefits to Employees

The Tax Cuts and Jobs Act (the Act) passed in late 2017 has brought a collection of changes to almost every business. Although many tax cuts, such as reducing the corporate tax rate from 35% to a flat rate of 21%, are widely and warmly welcomed, the Act trims down some tax breaks that businesses have depended on for many years, including qualified transportation benefits. Qualified transportation benefits are defined as: • A ride in a commuter highway vehicle between the employee’s home and work place; • A transit pass;…

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Supreme Court’s Internet Sales Tax Ruling

The Virtual Age Demands Change In the modern era in which we live, interpretation of laws is in flux. The virtual world creates new areas of query for lawmakers, courts, businesses, and their advisors. The interpretation of the Commerce Clause of the U.S. Constitution has been up for debate in recent years due to the increasing demand for goods in the online market place. Consumers are purchasing at an increasing rate through remote sellers who, due to their lack of physical presence in the purchaser’s state, have not collected and…

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Tax filing reminders

July 31st    Calendar-year pension and self-aware benefits plans (Form 550) is due September 17th 2017 calendar-year S corporation income tax return (Form 11205) on extension is due 2017 calendar-year Partnership income tax return (Form 1065) on extension is due Individual and Trust third quarter estimated tax payments are due Calendar-year corporations third installment of estimated income tax for 2018 October 1st Tax return for 2017 is due for extended income tax returns for estates and trusts October 15th 2017 calendar-year C corporation income tax return (Form 1120) on extension is…

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NEW 1040 FORM: SHORTER FOR 2018, BUT HAS MORE SCHEDULES

The IRS has issued drafts of the 2018 Form 1040 and new Schedules 1 through 6. This is a major redesign and allows the politicians to say that the tax return has been reduced to postcard size. The new 1040 is about half the size of the current version, with only 23 numbered lines (down from 79). The front page includes signature lines and no financial information. The numbers are reported on the back page of the 1040 and additional Schedules are completed only if they apply to the taxpayer….

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Tax filing reminders

June 15th  Individual income tax returns are due for U.S. citizens or resident aliens living and working or on military duty outside the U.S. and Puerto Rico Individual and Trust second quarter estimated tax payments are due Calendar-year corporations second installment of estimated income tax for 2018 September 17th 2017 calendar-year S corporation income tax return (Form 11205) on extension is due 2017 calendar-year Partnership income tax return (Form 1065) on extension is due Individual and Trust third quarter estimated tax payments are due Calendar-year corporations third installment of estimated…

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Tax retention guidelines for small businesses

You may have breathed a sigh of relief after filing your 2017 income tax return (or requesting an extension). But if your office is strewn with reams of paper consisting of years’ worth of tax returns, receipts, canceled checks and other financial records (or your computer desktop is filled with a multitude of digital tax-related files), you probably want to get rid of what you can. Follow these retention guidelines as you clean up. General rules Retain records that support items shown on your tax return at least until the…

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Changes to business expense deductions

Employer’s Deduction for Fringe Benefit Expenses Limited Under prior law, a taxpayer could deduct up to 50% of meals and entertainment; housing and meals provided for the convenience of the employer on the business premises were 100% excluded from gross income; and qualified transportation fringe benefits were not included in an employee’s gross income. For amounts paid after Dec. 31, 2017, all deductions for entertainment expenses are disallowed, eliminating the subjective determination of whether such expenses are sufficiently business related. The current 50% limit on meals is expanded to meals…

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10 highlights of the tax cuts & jobs act for individuals

The new tax law has some good news. Tax rates have gone down in 2018 for the majority of taxpayers. There are a few case where rates increase, including single taxpayers in the 33% bracket for 2017 will be at 35% for 2018. For married filing jointly, those in a 35% bracket in 2017 see no change for 2018. Most others filers see a decreased rate for the same taxable income amount. Your taxable income will not be the same in 2018. For starters, there are no more personal exemptions…

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Get started on 2018 tax planning now!

With the April 17 individual income tax filing deadline behind you (or with your 2017 tax return on the back burner if you filed for an extension), you may be hoping to not think about taxes for the next several months. But for maximum tax savings, now is the time to start tax planning for 2018. It’s especially critical to get an early start this year because the Tax Cuts and Jobs Act (TCJA) has substantially changed the tax environment. Many Variables A tremendous number of variables affect your overall…

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Great uses for your tax refund

Most Americans get a refund every year, with the average check weighing in at $2,895 last year. Even though it’s really money that they earned, many people are tempted to treat it like a windfall and splurge. If you can resist that temptation, here are some of the best ways to put your refund to good use: Pay off debt. If you have debt, part of your refund could be used to reduce or eliminate it. Paying off high-interest credit card or auto loan debt means freeing up the money…

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