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Personal Tax

Taxpayer First Act & Introduced Legislation

Taxpayer First Act Last week, Congress passed the Taxpayer First Act, a tax reform bill that has several provisions championed by the National Association of Enrolled Agents. The Act establishes an Independent Office of Appeals to serve as an independent judiciary for administrative actions (examination and collection determinations) by the IRS. While an Office of Appeals exists within the current IRS structure, it is not a completely independent structure. The Office of the Taxpayer Advocate is strengthened as well. The Act also prescribes changes to the customer service strategy, allows for exceptions from user fees for low-income taxpayers, and changes [...]

2019-06-24T11:19:45-07:00June 21st, 2019|Business Tax, Personal Tax|Comments Off on Taxpayer First Act & Introduced Legislation

Effects of Tax Cuts and Jobs Act

The Congressional Research Service, a division of the Library of Congress, has released a preliminary report detailing the effects of the 2017 Tax Cuts and Jobs Act, which lowered marginal tax rates and made other modifications to the tax code for the 2018 tax year and beyond. The service reports that there was no discernible change in federal gross domestic product (GDP) and that "the growth effects tend to show a relatively small (if any) first-year effect on the economy." Neither GDP nor wages saw a statistically significant change. The Congressional Budget Office initially estimated that total revenues would fall [...]

2019-06-24T11:22:31-07:00May 22nd, 2019|Business Tax, Personal Tax|Comments Off on Effects of Tax Cuts and Jobs Act

Interest on Home Equity Loans Often Still Deductible Under New Law

IR-2018-32, Feb. 21, 2018 WASHINGTON — The Internal Revenue Service today advised taxpayers that in many cases they can continue to deduct interest paid on home equity loans. Responding to many questions received from taxpayers and tax professionals, the IRS said that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labelled. The Tax Cuts and Jobs Act of 2017, enacted Dec. 22, suspends from 2018 until 2026 the deduction for interest paid on home equity [...]

2018-03-03T12:11:05-07:00March 3rd, 2018|Personal Tax|Comments Off on Interest on Home Equity Loans Often Still Deductible Under New Law

Last-minute year-end moves in light of Tax Cuts and Jobs Act

Congress is enacting the biggest tax reform law in thirty years, one that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill, and the amount of federal tax you will pay. Since most of the changes will go into effect next year, there's still a narrow window of time before year-end to soften or avoid the impact of crackdowns and to best position yourself for the tax breaks that may be heading your way. Here's a quick rundown of last-minute moves you should think about making. Lower tax rates coming. The [...]

2017-12-20T14:06:38-07:00December 20th, 2017|Business Tax, Personal Tax|Comments Off on Last-minute year-end moves in light of Tax Cuts and Jobs Act

Case Study: Are You Managing Your Personal Cashflow?

Client Sue and Richard are a newly married professional couple.  They have no children and earn a very decent income as corporate lawyers.  The mystery was they were living pay to pay.  Truth be told, they were behind!  They had acquired few assets other than a great car, substantial wardrobes and an eclectic wine collection. Problem Sue and Richard required assistance to manage their income and expenses so they could save to purchase a home within the new few years.  Their immediate need was to understand where their funds were going. Solution Their Accountant listened and reviewed the limited financial [...]

2017-10-11T12:27:11-07:00October 11th, 2017|General Consulting, Personal Tax|Comments Off on Case Study: Are You Managing Your Personal Cashflow?

Simple Options to Improve your Personal Cashflow

It is very simple: To gain wealth, you must spend less than you earn. Being fiscally astute is not rocket science.  Let’s review simple options to help you turn your spending habits around and achieve a positive personal cash flow. Settle bills by the due date unless there is an incentive to pay early. Your money is better placed to work for you in an interest-bearing account. Pay off high-interest rate debt to free up money. This is your priority task.  Debt is not a given.  Break the cycle and pay off your debts.  Pay as much extra off the debt as [...]

2017-10-11T12:25:57-07:00October 11th, 2017|Personal Tax|Comments Off on Simple Options to Improve your Personal Cashflow

Changes to Child Tax Credit – American Opportunity Tax Credit – Earned Income Tax Credit

Over the past few years, the use of refundable tax credits has increased.  Due to the significant potential - and actual - fraud, Congress has required the Internal Revenue Service to put into places certain measures to combat fraud, which costs the Federal Government over $10 billion dollars per year. For more information on reforming these tax credits, click here. Accelerated Form Filing Dates Worker payment reports (Forms W-2 and 1099) must be filed with the federal government by January 31.  The prior law required forms to be given to workers by January 31, but the filing copies were due at a [...]

2016-12-23T09:54:18-07:00December 23rd, 2016|Personal Tax|Comments Off on Changes to Child Tax Credit – American Opportunity Tax Credit – Earned Income Tax Credit

Year-End Planning for 2016

As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Factors that compound the planning challenge this year include turbulence in the stock market, overall economic uncertainty, and Congress's all too familiar failure to act on a number of important tax breaks that will expire at the end of 2016. Some of these expiring tax breaks will likely be extended, but perhaps not all, and as in the past, Congress may not decide the fate of these tax [...]

2016-12-06T22:26:34-07:00December 6th, 2016|Business Tax, Personal Tax|Comments Off on Year-End Planning for 2016
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