The Tax Cuts and Jobs Act (TCJA) changes the rules for deducting interest on home loans. Most homeowners will be unaffected because favorable grandfather provisions will keep the prior-law rules for home acquisition debt in place for them.
The Tax Cuts and Jobs Act (TCJA) changes the rules for deducting interest on home loans. Most homeowners will be unaffected because favorable grandfather provisions will keep the prior-law rules for home acquisition debt in place for them.
On Friday, February 9, 2018, the Bipartisan Budget Act of 2018 was signed into law. The new law includes an extension of certain expired tax provisions for 2017, and tax relief for victims of Hurricanes Harvey, Irma, and Maria and the California Wildfires. Below is a summary of the key provisions affecting individual taxpayers.
As you’ve heard by now, the Tax Cuts and Jobs Act (TCJA) includes a number of changes that will affect individual taxpayers in 2018 and beyond. Significant attention has been given to the reduced tax rates for most individuals and the new limit on deducting state and local taxes. But there is more to the story. We provide a summary of some of the lesser-known provisions in the new law.
This week the Tax Cuts and Jobs Act (the Act) has officially passed. The Act significantly changes the landscape for individuals and business for tax years beginning after December 31, 2017.
For many taxpayers, the changes made by the legislation present a host of tax planning challenges and opportunities going forward. We have included an overview of these challenges and opportunities for both individuals and businesses below.
Please contact your AHP tax consultant with any questions or concerns you may have.
Are you age 50 or older? If so, you can currently make extra “”catch-up”” contributions to certain types of tax-favored retirement accounts. Over time, these contributions can make a significant difference in your retirement-age wealth.
What about tax reform? After President Trump and other lawmakers stated that they wouldn’t tinker with retirement plan contribution tax breaks, the U.S. Senate has proposed limits to catch-up contributions. These are just proposals. For now, the rules in this article are current law.
Unfortunately, many people are unaware of this retirement savings bonus. Here’s what you need to know to reap the benefits.
As year end approaches, you may be thinking about making some charitable donations. Here’s a rundown of the potential tax breaks for your generosity.
Itemized Deductions
You can claim write-offs for contributions of cash and other items donated to charitable organizations, such as United Way and Goodwill. What you might not realize is that not all contributions to charities qualify for tax breaks.
First, you receive tax savings from charitable donations only if you itemize deductions on your personal tax return. For 2017, the standard deduction amounts are:
The IRS is warning about possible fake charity scams that are emerging due to recent hurricanes. Taxpayers who want to help should seek out recognized charitable groups to make donations.
“While there has been an enormous wave of support across the country for the victims of Hurricane Harvey, people should be aware of criminals who look to take advantage of this generosity by impersonating charities to get money or private information from well-meaning taxpayers,” the IRS stated. Such fraudulent schemes may involve in-person solicitations or contact by telephone, social media and e-mail.
Criminals often send “phishing” e-mail messages that steer recipients to bogus websites that appear to be affiliated with legitimate charitable causes. These sites frequently try to imitate the websites of — or use names similar to — genuine charities. They sometimes claim to be affiliated with legitimate charities in order to persuade people to send money or provide personal financial information that can be used to steal identities or financial resources.
Although nowhere in the United States is safe from Mother Nature, there is a silver tax lining: If your personal-use property is struck by a natural disaster, damaged by another calamity or stolen, you may be able to obtain some relief by claiming a casualty or theft loss as an itemized deduction on your individual tax return. As with most tax breaks, however, there are important rules and limits you need to be aware of.
The Basics
To qualify for a casualty loss deduction, the damage or destruction must result from a “sudden, unexpected or unusual” event. Typically, this includes damage or destruction caused by natural disasters, such as hurricanes, tornadoes, fires, earthquakes or volcanic eruptions. But casualty losses may also result from such events as automobile collisions or water pipes bursting during a severe cold snap.
Summer — the traditional wedding season — is just around the corner. Marriage changes life in many ways. Here’s how it may affect your tax situation.
Marital Status
Your marital status at year end determines your tax filing options for the entire year. If you’re married on December 31, you’ll have two federal income tax filing choices for 2017:
File jointly with your spouse, or Opt for “married filing separate” status and then file separate returns based on your income and your deductions and credits.
Here are two reasons most married couples file jointly:
If you recently filed your 2016 income tax return (rather than filing for an extension) you may now be wondering whether it’s likely that your business could be audited by the IRS based on your filing. Here’s what every business owner should know about the process.
Catching the IRS’s Eye
Many business audits occur randomly, but a variety of tax-return-related items are likely to raise red flags with the IRS and may lead to an audit. Here are a few examples:
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