IRS

2018 Tax Reform-Business Tax Changes

The Tax Cuts and Jobs Act (H.R. I; the Act) provides for major changes to business tax law.  Most of the changes are effective January 1, 2018.  The majority of the business provisions do not expire.

The following are a few changes that may save you significant tax dollars this year and in future years:

  • C-corporations: Are now subject to a flat tax of 21% and the special tax rate for personal service corporations is eliminated.
  • Small business deduction: Probably the most revolutionary addition to the tax law is the new deduction for qualified business income from “pass-through entities,” which also applies to sole proprietorships and rental properties. This provision can provide a deduction of up to 20% of your net “qualified business income”. This new law is too complicated to […]
By |February 8th, 2018|Categories: Announcements, Business Operations, Business Tax, IRS, Real Estate|Comments Off on 2018 Tax Reform-Business Tax Changes

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

2016 Tax Planning Guide

 

Our 2016/2017 Tax Planning Guide is now available. The election of a new President in addition to Republicans retaining control of Congress could result in significant changes in tax laws in the upcoming year.  Our online Tax Planning Guide will give you access to updated tax and financial planning information throughout the year as legislative changes are made. Feel free to forward it to friends and family who you think might find it interesting or helpful. We hope this guide will prove to be a convenient resource for you throughout the year.  Just a few of the topics covered in the guide are:

  • Changes to some business and individual tax filing deadlines effective in 2017
  • Tax planning for investments and net investment income tax
  • How […]