The pieces of tax legislation garnering the most attention these days are the Tax Cuts and Jobs Act signed into law last December and the possible “Tax Reform 2.0” that Congress might pass this fall. But what happens with “extenders” legislation is also important. It affects whether the above-the-line deduction for tuition and related expenses, […]
Archive | Insights & Perspective
The TCJA prohibits undoing 2018 Roth IRA conversions, but 2017 conversions are still eligible
Converting a traditional IRA to a Roth IRA can provide tax-free growth and tax-free withdrawals in retirement. But conversions are subject to income tax. Before the TCJA, if you discovered a conversion would be too costly tax-wise, you could undo it using a “recharacterization” and avoid the tax hit. Effective with 2018 conversions, the TCJA […]
Do you still need to worry about the AMT?
The alternative minimum tax (AMT) has long been a worry to many individual taxpayers. Learn how TCJA changes might affect your AMT risk, and see our AMT planning tips
Why the “kiddie tax” is more dangerous than ever
If you’re considering making a gift of income-producing or appreciated assets to a minor or a college student, beware of the big, bad kiddie tax. It’s fiercer under the TCJA.
New Tax Act and Mortgage Interest Deductions – What Changed?
Dear Clients and Friends: We are writing to let you know about changes in the rules for deducting qualified residential interest, i.e., interest on your home mortgage, under the Tax Cuts and Jobs Act (the Act). Under the pre-Act rules, you could deduct interest on up to a total of $1 million of mortgage debt […]
New 20% deduction for “qualified business income”
Dear Clients and Friends: We are writing to inform you of a significant new tax deduction taking effect in 2018 under the new tax law. It should provide a substantial tax benefit to individuals with “qualified business income” from a partnership, S corporation, LLC, or sole proprietorship. This income is sometimes referred to as “pass-through” […]
Thank You
We would like to use this space to thank our clients and friends for the opportunity to have served them during this past year. Whether called upon to provide accounting, auditing or tax services, business or personal financial planning or perhaps just to listen, we will always do our best to provide quality service. We […]
Tax Reform
The President’s Advisory Panel on Federal Tax Reform has finally issued its report and, surprisingly, found the current tax system to be flawed and in need of some tinkering. We asked the leading Republican Presidential candidate, Donald Trump, for his thoughts on reforming our our current income tax code. The Duck’s response:
Magic: Social Security Benefits
How do you know if your Social Security benefits are taxable? The answer requires MAGIC — (the Modified Adjusted Gross Income Calculation). The “magic” number, generally, is your adjusted gross income (excluding your social security benefits) plus
Happy Holidays
That you are now reading this letter means that you have opened our package and have noticed our Annual Tax Organizer. While you may have a tremendous urge to complete it immediately, we suggest you concentrate initially on the first question posed to you – What is your filing status? Our heroes in Congress and […]
