The IRS recently issued a stern warning to some taxpayers who plan to travel internationally: Pay off your tax debt or your passport may be revoked. Under a little-noticed 2015 law, the IRS was granted the authority to notify the State Department about taxpayers who have a “seriously delinquent tax debt.” This is defined [...]
Dear Clients and Friends (and Blog Readers!): With the first tax season under the Tax Cuts and Jobs Act (TCJA) behind us, we have a better understanding of the practical applications on the tax law changes. As expected, the law changes had a profound impact on many taxpayers and created new planning opportunities. There [...]
As you are probably aware if you read this blog consistently, we think Opportunity Zones have great potential for taxpayers/investors. In fact, since last fall, many of the uncertainties around Opportunity Zones have been cleared up through IRS regulations. Most people are not expecting any more official IRS guidance release so the rules of [...]
The charitable remainder trust (CRT), which has been a valuable estate planning tool for decades, has not been forgotten. Currently, the usual 15% tax rate on long-term capital gains is increased to 20% for upper-income investors, while a 3.8% surtax may also apply to a portion of your investment income. Thus, CRTs remain a popular [...]
It takes dedication, innovation and a little luck—or perhaps a lot of luck—to turn a vision into a successful business. This might be your life story or the story of someone you are close to. But what will happen to the small business when the owner is no longer able to chart the course? According [...]
The massive tax legislation signed over a year ago, the Tax Cuts and Jobs Act (TCJA), authorized a brand-new deduction for qualified business income (QBI) of pass-through entities and sole proprietors. This deduction under Section 199A of the tax code provides opportunities for a wide range of taxpayers, but has also caused confusion, especially as [...]
Generally, when you rent out a vacation home to strangers, you must pay tax on the rental income, but you are then entitled to some offsetting deductions. Special rule: There are no tax consequences for a rental lasting two weeks or less. In other words, you do not owe any tax, but you cannot [...]
This may be the last year you claim a medical expense deduction on your personal tax return. It all has to do with several changes in the Tax Cuts and Jobs Act (TCJA). Background: Among other provisions that are generally effective for 2018 through 2025, the TCJA cuts back or eliminates certain itemized deductions, while [...]
Are any of your children currently attending college or preparing to enter school in the fall? The tax law provides several special tax breaks that may benefit parents who help pay qualified expenses. In particular, you may be able to claim one of two tax credits for higher education, subject to certain restrictions. Following is [...]
Under the Tax Cuts and Jobs Act (TCJA), certain deductions have been eliminated or modified, including the write-off for state and local tax (SALT) payments. The changes are effective for 2018 through 2025. As a result, some taxpayers will be going on a SALT-free diet when they file their 2018 returns. Background: Previously, many middle-to-upper [...]