December 2017 - HBL CPAs

Dec
28
2017

Tax Cuts and Jobs Act and changes to AMT (Alternative Minimum Tax)

What happens next with tax reform? On Dec. 2, the U.S. Senate passed the Tax Cuts and Jobs Act in a 51-49 vote. Many changes were made to the bill in order to win over the Senators who opposed parts of it, including a provision to keep the current individual alternative minimum tax (AMT), but with a higher exemption threshold. (The corporate AMT would also be retained.) An earlier version of the bill repealed the AMT.

Dec
22
2017

Changes to the Child Tax Credit under the Tax Cuts and Jobs Act of 2017

The child tax credit increases under the Tax Cuts and Jobs Act. Currently, a taxpayer can claim a child tax credit of up to $1,000 per qualifying child under age 17. For tax years after Dec. 31, 2017, and before Jan. 1, 2026, the credit is raised to $2,000. The income levels at which the credit phases out are increased to $400,000 for married taxpayers filing jointly ($200,000 for all other taxpayers). The refundable amount of the credit is increased to $1,400 per qualifying child.

Dec
19
2017

Accrual-basis taxpayers: These year-end tips could save you tax

One way accrual-basis taxpayers can save tax is to properly record and recognize expenses incurred this year but that won’t be paid until 2018 so they can be deducted on the 2017 tax return. Common examples include commissions, salaries, wages, payroll taxes, advertising, interest, utilities, insurance and property tax. 2017 may be an especially good year to accelerate deductible expenses. Why? Income tax rates for many businesses could drop significantly in 2018, and deductions save more tax when rates are higher.

Dec
13
2017

Even if your income is high, your family may be able to benefit from the 0% long-term capital gains rate

Even if your income is high, your family may be able to benefit from the 0% long-term capital gains rate. Giving appreciated stock instead of cash to loved ones in the 0% bracket might allow you to eliminate all federal tax liability on the appreciation, or at least significantly reduce it. The recipients can sell the assets at no or a low federal tax cost. Before acting, make sure the recipients won’t be subject to the “kiddie tax.” Also consider any gift and generation-skipping transfer (GST) tax consequences.

Dec
12
2017

2018 Q1 tax calendar: Key deadlines for businesses and other employers

Here are a few key tax-related deadlines for businesses during Q1 of 2018. JAN. 31: File 2017 Forms W-2 with the Social Security Administration and provide copies to employees, and provide copies of 2017 Forms 1099-MISC to recipients. FEB. 28: File 2017 Forms 1099-MISC if paper filing. (Forms 1099-MISC reporting nonemployee compensation in Box 7 must be filed by Jan. 31.) MAR. 15: If a calendar-year partnership or S corp., file or extend your 2017 tax return.

Dec
06
2017

Getting around the $25 deduction limit for business gifts

At this time of year, it’s common for businesses to make thank-you gifts to customers, employees and other business entities. Unfortunately, tax rules limit the deduction for business gifts to only $25 per person per year. But there are exceptions. Here are three: 1) gifts to a company for use in the business, 2) incidental costs of making a gift, such as engraving or shipping, and 3) gifts to employees (though other limits apply and they may be treated as taxable compensation).

Dec
01
2017

IMPORTANT ANNOUNCEMENT!

ATTENTION!!! On November 27, 2017 the SSA announced that the 2018 social security wage limit would be set at $128,400. This is $300 lower than the previously announced limit of $128,700.