Posts from Mitch Estling
Did You Know: The Federal Exemption for Estate Tax Doubled with Tax Reform?
Higher exclusions may tempt some individuals to overlook estate tax planning, resulting in missed potential opportunities. It could be a mistake to over-simplify your estate plan in reaction to the new law.
Did You Know: The Corporate AMT and DPAD are Dead, but Research Tax Credits Live On?
With DPAD going away, the Research Tax Credit is now more valuable given reduction of the corporate tax rate from 35% to 21%.
Did You Know: The Availability of the Cash Method of Accounting Expanded for Small Businesses?
Beginning in 2018, the average annual gross receipts threshold for businesses to use the cash method increases from $5 million to $25 million.
Did You Know: You May Want to Change Your W-4 for 2018?
On January 29, 2018, the IRS issued Notice 2018-14 to provide additional federal income tax withholding guidance pending the release of the 2018 Form W-4. The IRS is currently revising Form W-4 to reflect changes made by the Tax Cuts and Jobs Act affecting individual taxpayers.
DID YOU KNOW? – The Tax Cuts and Jobs Act introduces a net operating loss (NOL) income limitation
The TCJA introduces a limitation on the amount of NOLs that a corporation may deduct in a single tax year equal to the lesser of the available NOL carryover or 80% of a taxpayer’s pre-NOL deduction taxable income (the “80% limitation”).
Understanding Entertainment Expenses Under the Tax Cuts and Jobs Act
One of the new provisions under the now signed Tax Cuts and Jobs Act may have you thinking twice before scheduling a round of golf with you customer. Yes, we’re talking about changes to the entertainment expense deduction. Previously, no deduction was allowed for ordinary and necessary expenses for an activity of a type generally […]
Did You Know: Taxpayers are allowed a qualified business income deduction?
If your individual taxable income is typically $315,000 or more ($157,500 for single filers), then this deduction will be phased out for specified service trades such as health, law, consulting, athletics, financial or brokerage services.
Did You Know: 529 Plans Are Expanded with the Tax Cuts and Jobs Act
This new provision gives taxpayers more flexibility by allowing funds in a 529 account to be used to pay for tuition expenses in connection with enrollment in an elementary or secondary public, private or religious school tax-free at the federal level.
Qualified Business Income Deduction
One of the more complex provisions of the Tax Cuts and Jobs Act (TCJA) is the Section 199A deduction which provides individuals a 20% deduction of “qualified business income” (QBI) from a partnership, S corporation, LLC or sole proprietorship. The deduction is an attempt to narrow the federal tax rate difference between corporations (21%) and […]
Tax Reform Roundup – The Details and Our Take
The recently enacted Tax Cuts and Jobs Act (TCJA) includes provisions that will affect businesses and individuals. This is the biggest income tax change since 1986 and there are still a lot of unknowns on how it will apply in different situations and many clarifications are still needed