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 [...]
JamisonMoneyFarmer PC is pleased to announce that CPAs Kristi Moore and Rachel Taylor have been admitted as shareholders in the firm effective January 1, 2019. Managing Shareholder Scott Goldsmith of JamisonMoneyFarmer PC (“JMF”) is pleased to announce the promotions of Kristi Moore and Rachel Taylor as shareholders. Kristi and Rachel join twelve other shareholders at [...]
If your company maintains flexible spending arrangements (FSAs) for the healthcare expenses of employees, an important deadline may be looming: March 15, 2019. For many healthcare FSAs, this is the last day you can withdraw funds from the balance in your account for 2018. Background: An FSA is funded with pre-tax dollars, so there are [...]
In lieu of deducting actual expenses, the IRS permits qualified taxpayers to deduct a flat rate based on miles traveled, plus related tolls and parking fees. These standard mileage rates are updated annually. For 2019, the rates are: 58 cents per mile driven for business driving (up 3.5 cents from 2018); 20 cents per mile [...]
What’s the biggest tax deduction on your 2018 return? For many itemizers, it is the write-off for charitable donations on Schedule A. But these deductions are not automatic if you do not have the proper records to back up your claims. Here are several important reminders for this year’s tax filing season. Monetary contributions: Deductions [...]
The IRS has provided some estate planning comfort for well-to-do individuals. Under the Tax Cuts and Jobs Act (TCJA), the estate tax exclusion was raised to $10 million, indexed for inflation. That provides plenty of leeway for most families. However, like many other TCJA changes for individuals, this provision is scheduled to “sunset” after 2025. [...]