After much anticipation, President Trump signed the new tax bill on December 22, 2017. The new tax bill is the most comprehensive tax bill since 1986 and will have a sweeping effect on individuals and businesses.
In part one of this blog, I've outlined the top 11 changes that will affect individual taxpayers:
The economy used to be a simpler place—either you owned a business, or you worked for someone else. In today's 'Sharing Economy', where VRBO, HomeAway, and Airbnb are common ways for the average person to make some extra cash, it's a bit more complex.
You may not think of yourself as a landlord, but if you offer your home or other property as a vacation or short-term rental, you are. And if the additional income isn't enough of a benefit, short-term rentals may also help you minimize your tax liability.
One of the questions that we get most often from our clients is, "What documents do I need to keep in regards to my taxes, and for how long?"
Of course, every situation is different, and your CPA can help you determine what you should keep based on your specific needs. However, there are a few general guidelines you can follow:
Trusts are a great way to put conditions on how, when, and to whom your assets will be distributed after you pass away. However, there are several options and specific terms to know when it comes to setting up a trust, and many people aren't sure of the best path forward.
To help explain, I've put together some frequently asked questions and answers on the subject.
You may have heard that lawmakers recently voted to push forward a proposed "Millionaire's Tax" in the state of Massachusetts. Wondering what this means, and when it could possibly impact Massachusetts residents?
To shed some light on the topic, I've put together a list of frequently asked questions and answers:
The IRS recently released an update to its federal estate tax regulations, relaxing the rules on making a late portability election to a descendant's estate.
Currently, the federal estate tax exemption is $5.4 million, meaning that when a person dies, they will only pay federal estate tax (up to 40%) if the value of their estate exceeds $5.4 million. In 2011, the IRS introduced a concept called 'portability' to the federal estate tax exemption, and has now added an additional rule to allow for a late portability election. Here's what you should know:
President Trump recently unveiled the "2017 Tax Reform for Economic Growth and American Jobs", which calls for tax cuts and simplification for both individuals and businesses. Currently, the plan contains broad principles, with specific details to be determined in the coming weeks.
While we wait for the details to be finalized, I've summarized the major changes outlined in the current proposed plan. Here are the top 10 things you should know:
Did you know that if your company has developed software for internal use, you may be eligible for tax credits? This fall, the IRS finalized a regulation that will allow taxpayers to receive credit for their investment in software research and development.
You might think that you need to develop software for a multi-billion dollar company to claim tax credits, but that's not necessarily the case. If your company is attempting to develop or improve your own software (or have hired someone to do so for you), you're likely to be eligible for tax benefits.
Many people fear the wrath of the IRS, especially during tax season. Penalties for late-filing, late-payment, accuracy related penalties, or estimated tax penalties can make filing your taxes seem like a daunting task.
Over the past several months, we have spoken with many individuals who have received threatening phone calls from the "IRS". The caller may demand immediate payment of back taxes, ask for a credit card number over the phone, or even threaten a lawsuit or arrest for failure to comply.
This is a widespread scam that is becoming more prevalent. As we approach tax season, it is more important than ever to be diligent and protect your personal information. To help you identify scammers, I've put together a list of 6 things the real IRS will never do.
