Showing posts tagged with: TCJA
14May
A review of significant TCJA provisions affecting small businesses
Business Ownership

 

Now that small businesses and their owners have filed their 2017 income tax returns (or filed for an extension), it’s a good time to review some of the provisions of the Tax Cuts and Jobs Act (TCJA) that may significantly impact their taxes for 2018 and beyond. Generally, the changes apply to tax years beginning after December 31, 2017, and are permanent, unless otherwise noted.

Corporate taxation

  • Replacement of graduated corporate rates ranging from 15% to 35% with a flat corporate rate of 21%
  • Replacement of the flat personal service corporation (PSC) rate of 35% with a flat rate of 21%
  • Repeal of the 20% corporate alternative minimum tax (AMT)
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08May
Do you need to adjust your withholding?
Taxes

If you received a large refund after filing your 2017 income tax return, you’re probably enjoying the influx of cash. But a large refund isn’t all positive. It also means you were essentially giving the government an interest-free loan.

That’s why a large refund for the previous tax year would usually indicate that you should consider reducing the amounts you’re having withheld (and/or what estimated tax payments you’re making) for the current year. But 2018 is a little different.

TCJA and withholding

To reflect changes under the Tax Cuts and Jobs Act (TCJA) — such as the increase in the standard deduction, suspension of personal exemptions and changes in tax rates and brackets —the IRS updated the withholding tables that indicate how much employers should hold back from their employees’ paychecks, generally reducing the amount withheld.

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05Mar
Personal exemptions and standard deductions and tax credits, oh my!
Taxes

Under the Tax Cuts and Jobs Act (TCJA), individual income tax rates generally go down for 2018 through 2025. But that doesn’t necessarily mean your income tax liability will go down. The TCJA also makes a lot of changes to tax breaks for individuals, reducing or eliminating some while expanding others. The total impact of all of these changes is what will ultimately determine whether you see reduced taxes. One interrelated group of changes affecting many taxpayers are those to personal exemptions, standard deductions and the child credit.

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27Feb
Despite new restrictions under TCJA, home equity loan interest may still be deductible
Taxes

Alert: The interest on your home equity loan may still be deductible. Despite new restrictions under the Tax Cuts and Jobs Act (TCJA), the IRS announced taxpayers can often still deduct interest on a home equity loan, home equity line of credit, or second mortgage, regardless of how the loan is labeled. On Feb. 21, the IRS clarified that the TCJA does suspend the deduction for interest paid on home equity loans and lines of credit, UNLESS they’re used to buy, build or substantially improve the taxpayer’s home that secures the loan. (IR 2018-32)

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