It's hard to believe that another tax season is nearly here! In an effort to save a few trees, we will no longer automatically mail tax organizers to clients. Instead, if you are an existing client and would like to receive a tax organizer showing your prior year tax figures (very useful for gathering [...]
Open enrollment season on www.healthcare.gov has begun and lasts through December 15. Although 2019 will be the first year that those without coverage are not penalized, it is of course a very good financial move to obtain health insurance, and you may well qualify for subsidies to do so. Health insurance premiums for the [...]
Corporations electing subchapter S tax treatment were originally designed to pass corporate income, losses, deductions, and credits through to the owners of small corporations. S corporations must limit the number of shareholders to 100 and can only have one class of stock (although there may be voting and nonvoting common stock), imposing restrictions on [...]
The IRS has issued 128 pages of proposed regulations clarifying the application of the new 20% pass-through income deduction. The main takeaway is that the regulations are quite pro-taxpayer. For instance, the law states that the 20% deduction is not available to businesses "where the principal asset is the reputation or skill of one [...]
The South Carolina educational tax credit for exceptional needs children is rather unique. It is a credit that a taxpayer may purchase (via donation) and receive a dollar-for-dollar reduction in South Carolina income tax (up to 60% of the current year tax liability). Furthermore, the donation qualifies for a federal charitable tax deduction. So, [...]
In our continuing series on major provisions of the new tax law, today we focus on the deductibility of moving expenses. It's pretty simple really. Under the prior law, all moving expenses were deductible if the move was job-related and a distance test was met. Under the new law, moving expenses are no longer [...]
The tax reform bill that takes effect in 2018 contains significant provisions that impact nearly all of our clients. One such provision is that affecting the deductibility of unreimbursed employee business expenses such as business mileage, tools, equipment, and uniforms. In the past, these expenses have been treated as "miscellaneous itemized deductions" and deductible [...]
The tax reform bill that takes effect in 2018 contains significant provisions that impact nearly all of our clients. One such provision is that affecting the deductibility of home equity loan interest (second mortgages). In the past, interest paid on home equity loans has been fully deductible up to the first $100,000 of debt. [...]
The tax bill has finally cleared Congress. It contains significant changes that will affect our clients. Perhaps the most significant is a new 20% deduction for "pass-through income" from sole proprietorships, partnerships, and S corporations. This provision may result in significant tax savings for many clients, but its application is quite complicated. To help [...]
Open enrollment for health insurance on www.healthcare.gov begins on November 1. For coverage beginning January 1, 2018, you must select a policy and pay the first month's premium by December 15. The 2018 penalty for not having coverage is 2.5% of family income. (Contrary to popular belief, the penalty has not been abolished and [...]
