The CBD Blog

Find peer advice, partner insights, and industry updates – all here in the CBD blog, ‘At The Helm’! With contributions from our entire team, we blog about the things that interest you.

How the New Limit on SALT Deductions Affects Homeowners

There’s been a lot of controversy about the recent tax law change that limits the federal deductions for state and local taxes (SALT). This limitation will have an adverse effect on many homeowners, especially residents of jurisdictions with high property taxes and people who own expensive homes or more than one home. Here are the details, along with important information if you’re thinking about selling your house.

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Close-Up on Mortgage Interest Deduction Rules

Unfortunately, the new tax law places new limits on home mortgage interest deductions for the 2018 through 2025 tax years. But the changes only affect homeowners with larger first mortgages and those with home equity debt. Are you in danger of losing some of your home mortgage interest deduction under the new law? Read this article to find the answer.

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New Law Gives Eligible Pass-Through Businesses a Special Tax Break

The new tax law introduces a special deduction for eligible pass-through businesses. The deduction is generally equal to 20% of “qualified business income.” It’s designed to help achieve parity between the reduced corporate income tax rate and the tax rates for business income that passes through to individual owners of sole proprietorships, partnerships, limited liability companies (LLCs) and S corporations. Here are the details.

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Important Tax Figures for 2018

Every year, the dollar amounts allowed for various federal tax benefits are subject to change based on inflation adjustments and legislation. Here are some important tax figures for 2018, compared with 2017, including the estate tax exemption, Social Security wage base, qualified retirement plan and IRA contribution limits, driving deductions, allowable business write-off amounts and more.

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New Law Eases the Individual Alternative Minimum Tax

The Tax Cuts and Jobs Act eliminates the alternative minimum tax (AMT) for corporations, but retains it for individuals. However, there’s some good news: Fewer taxpayers will be hit with the AMT, and those who are affected will likely see their AMT liabilities decrease for the 2018 through 2025 tax years under the new law. Here’s how the changes might affect you.

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AMT Calculations: It’s Showtime

Many people are uncertain how the more taxpayer friendly alternative minimum tax (AMT) provisions of the new tax law will affect them. Here are some examples that showcase how AMT calculations will differ for 2018 through 2025. (Spoiler alert: Don’t assume you won’t be hit by the AMT under the new rules.)

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6 Last-Chance Tax Breaks: Do You Qualify?

The IRS is now accepting tax returns for 2017. But many people are uncertain how the new tax law will affect their 2017 taxes. As a general rule, it’s a good idea to maximize any deductions that are available to you for 2017, because some of them are repealed, suspended or modified under the new law for 2018. Here are six valuable breaks that will soon disappear, along with a list of deductions that survived tax reform.

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3 Affordable Care Act Taxes Postponed by Congress

A short-term government funding bill, which was signed into law recently, suspends three health care related taxes. These are the 40% Cadillac tax on employers that offer generous health insurance coverage, the 2.3% medical device tax and an annual excise tax on health insurance providers. Here are the details, including an update about the health coverage mandates for individuals and certain employers.

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New Law Revamps the Kiddie Tax

The so-called “kiddie tax” was designed to discourage high-income taxpayers from shifting income to children in lower tax brackets to reduce the family’s overall tax bill. The kiddie tax can cause a portion of a dependent child’s net unearned income to be taxed at higher rates than the regular rates for single taxpayers. The Tax Cuts and Jobs Act changes the kiddie tax rate structure for 2018 through 2025. Here’s how.

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Spotlight on Pass-Through Entities under the Tax Cuts and Jobs Act

The federal income tax treatment of business entities has changed dramatically under the new tax law. For tax years beginning after December 31, 2017, C corporations will pay a 21% flat tax rate. Meanwhile, income from pass-through businesses will still be taxed at the owners’ rates but owners will get a valuable new tax deduction. So which type of entity is best under the new rules?

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Tax Reform: Topics of Special Interest for Individuals

How will the new tax law affect you? A lot of attention has been given to the reduced tax rates for most individuals and the new limit on deducting state and local taxes. But there’s much more to the changes. Here’s a look at some of the law’s fine print, including how it will affect the individual health care mandate, the kiddie tax and various tax deductions.

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Many Businesses Will Celebrate Tax Cuts in the New Tax Year

The new tax law is commonly known as the Tax Cuts and Jobs Act (TCJA) for a reason because most U.S. businesses are looking forward to owing far less federal income tax for tax years beginning after January 1, 2018. However, the exact tax cuts that most businesses will enjoy depend on several factors. Here’s a summary of some important changes for businesses.

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Landmark Tax Reform Bill Passes

The Tax Cuts and Jobs Act is the biggest tax reform package in over 30 years. With tax filing season right around the corner, business and individual taxpayers, with the help of their tax advisors, are scrambling to understand how the changes will affect them. Here are some key elements of the new law.

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How Might the New Tax Reform Law Affect You?

The new tax law has finally passed and the changes generally kick in in 2018. President Trump and Republican members of Congress say it will bring $3.2 trillion in tax cuts. But some individual taxpayers are skeptical. Everyone’s situation is unique and not everyone will come out ahead. This article provides an example of how it might affect your taxes in 2018, if you’re still eligible to itemize deductions.

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Is Social Media Activity Putting You at Risk?

Are you planning to go on a vacation this winter? Whether you’re trying to escape the cold or visiting loved ones, travel brings photo opportunities that you’ll want to share on social media. But think twice before you post a selfie from the beach or check-in at the airport. Thieves have been known to troll social media activity and some insurance companies may review your social media posts before approving theft-related claims.

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Dialing in on Smartphones for Kids

What’s the “right” age for buying a child his or her first smartphone? These devices can be a major financial investment, so it’s important to do your homework. But there are other nonfinancial challenges that need to be factored into this purchase, such as maturity issues, social media concerns, and the risks of cyberbullying and identity theft.

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Bad Debt Losses: Can You Deduct Loans Gone Bad?

Attempts by individual taxpayers to claim write-offs for bad debt losses have led to countless deficiency notices from the IRS. This article briefly explains the tax issues related to bad debt loss deductions and summarizes a recent U.S. Tax Court decision that allowed favorable business bad debt treatment for uncollectible loans.

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IRS Increases Annual Gift Tax Exclusion for 2018

Are you feeling generous this holiday season? If so, there’s good news: There’s still time to make gifts to family members for 2017. Plus, the annual gift tax exclusion has been increased by $1,000 for 2018. Here’s how annual gift-giving can add up to major tax savings for your family along with information on how the gift tax works and how recent tax reform proposals could affect your gift and estate plans.

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