Individual Tax

Home Equity Loan Interest can still be Deducted (in certain instances)

The IRS clarified in its News Release on February 21, 2018 that taxpayers can continue to deduct the interest on home equity loans, if the home equity loans are used to buy, build or substantially improve the taxpayer’s home that secures the loan.

Under prior tax law (pre-2018), the interest on a home equity loan secured by the taxpayer’s qualified residence was deductible (on a loan balance of up to $100,000) even if the loan was used to pay personal living expenses, i.e., paying off credit card debts, student loans or buying a car.

Starting in 2018, the new tax law does not allow taxpayers to deduct the interest on a home equity loan if the loan was used for personal living expenses.

In order for home equity loan interest to be deductible, […]

By |February 25th, 2018|Categories: Individual Tax, IRS, Real Estate|Comments Off on Home Equity Loan Interest can still be Deducted (in certain instances)

2018 Tax Reform-Individual Tax Changes

The President signed the biggest tax reform law in over 30 years. When you file your 2018 tax returns — about a year from now — your tax return may look very different. And because most changes don’t happen until then, we have some time to learn about the changes and plan for next year. Here are a few of the biggest changes that may affect you.

  • Tax rate changes: The maximum individual rate is reduced to 37%.
  • Standard deduction increases: The standard deduction is almost double.
  • Personal exemption eliminated: You will have no personal exemption deduction for yourself, your spouse, or your dependents.
  • Increased Child Tax Credit and new Dependent Credit: The credit is increased for each child to $2,000 (up to $1,400 of which is refundable for each […]
By |February 5th, 2018|Categories: Announcements, BCo Community News, Individual Tax, IRS|Comments Off on 2018 Tax Reform-Individual Tax Changes

IRS Enforces Tax Regulations on Cryptocurrency

With cryptocurrencies like Bitcoin, Ethereum and Litecoin gaining in popularity among investors, the IRS is becoming more aware of those who fail to disclose their gains and/or losses. According to an article written by Accounting Today (Click Here to read article), the IRS is going after Coinbase, an online platform where you can buy and sell cryptocurrencies. A court ordered Coinbase to release information about over 14,000 of its customers who may not have reported their cryptocurrency transactions on their tax returns.

Now that the IRS has pointed its spotlight on this issue, we want our clients to know the tax implications that might occur when investing in cryptocurrencies.   Notice 2014-21 (Click here to read), which was issued by the IRS, describes how cryptocurrency transactions are taxed.

By |December 22nd, 2017|Categories: Individual Tax, IRS|Comments Off on IRS Enforces Tax Regulations on Cryptocurrency

Proposed Tax Legislation – Update

As the proposed tax legislation is going through the reconciliation process, we are continuing to find various articles that delve deeper into certain provisions of the House and Senate bills.  We again found two very comprehensive articles on the Forbes website.  One of them focuses on the provisions of both bills that will effect landlords (click here to read) and the other analyzes who will benefit, and who will not, from the Senate tax bill (click here to read).

By |December 14th, 2017|Categories: Business Tax, Individual Tax, IRS|Comments Off on Proposed Tax Legislation – Update

Proposed Tax Legislation

As proposed tax legislation winds through committees in the House and Senate, heading for votes during the holidays, we thought it would be a good time to take a closer look at the two different bills.  We found two very comprehensive articles on the Forbes website.  One of them compares the bills with existing law (click here to read) and the other compares and contrasts the bills with each other (click here to read).

Take a look and feel free to give us a call to discuss in further detail if you have any questions…and stay tuned for updates!

By |November 15th, 2017|Categories: Announcements, Business Tax, Individual Tax|Comments Off on Proposed Tax Legislation