tax return

If your family has trouble with the kiddie tax, you face some new wrinkles for tax years 2018 through 2025 thanks to the Tax Cuts and Jobs Act (TCJA) tax reform. This is one of the many areas where tax planning can pay off.

“Our new Constitution is now established, and has an appearance that promises permanency; but in this world, nothing can be said to be certain, except death and taxes.”

It’s a quote that comes to us from Benjamin Franklin, who uttered the phrase in 1789.

by Louis Alleva

How will the Tax Cuts and Jobs Act (TCJA) affect a taxpayer’s withholding? Should any changes be made? Are there new circumstances that require an examination of the allowances claimed? You bet there are, but before explaining the impact of tax reform on withholding, let’s take a step back and look at the allowances themselves.

Tax Reform and Tax Preparation

As a new year approaches, many of us will reflect on the year that has passed. Personal and professional accomplishments may take center stage. We may take stock of any disappointments and recalibrate as 2019 approaches.

If you claim status as a tax law–defined real estate professional who can deduct his or her rental property losses, your time record for the year must prove that you spent:

The Tax Cuts and Jobs Act of 2017 removed entertainment from available business tax deductions, but did not address deductibility of expenses for business meals. To clarify the confusion that arose in the business community due to this omission, the IRS recently released interim guidance that taxpayers can rely on until they issue proposed regulations.

The Tax Cuts and Jobs Act (TCJA) includes several changes that affect partnerships and their partners, as well as LLCs that are treated as partnerships for tax purposes and their members. Most of the changes are good news. Here are some highlights:

Technical Termination Rule Repealed (Good)

The depreciation you claim with your home-office deduction is subject to a recapture tax when you sell your home.

As you likely know by now, your travel meals continue under tax reform as tax-deductible meals subject to the 50 percent cut. Also, tax reform did not change the rules that apply to your other travel expense deductions.

No matter how the 2017 Tax Cuts and Jobs Act (TCJA) may alter your tax planning, we’d like to believe one thing will remain the same: With or without a tax write-off, many Americans will still want to give generously to the charities of their choice. After all, financial incentives aren’t usually your main motivation for giving. We give to support the causes we cherish.