December 2018 - Page 4 of 5

Dec
12
2018

Time for NQDC plan deferral elections

If you’re an executive or other key employee, your employer may offer you a nonqualified deferred compensation (NQDC) plan, which pays you in the future for services currently performed and allows deferral of income tax. But NQDC plans must meet many requirements. One is that, if you wish to defer part of your 2019 compensation, you generally must make the election by the end of 2018. Questions? Contact us. We can answer them and help you determine what,

Dec
11
2018

Tax reform expands availability of cash accounting

The cash method of accounting offers greater tax-planning flexibility, allowing some businesses to defer taxable income. Under the TCJA, if your business’s average gross receipts for the previous three tax years are $25 million or less, you generally will now be eligible for the cash method for federal tax purposes, regardless of how your business is structured, your industry or whether you have inventories. Newly eligible businesses should determine whether the cash method would be advantageous and,

Dec
11
2018

Emerge! Holiday House Donation

HBL donated a truck bed full of gifts to Emerge! Center Against Domestic Abuse for their Holiday House Donation project. HBL matched what employees donated for a total donation of $1,619.28.

We wish all recipients a very happy holiday season and thanks to Emerge for hosting this wonderful event.

Dec
11
2018

National Tax Security Awareness Week

Holiday shopping season is in full swing and so is identity theft. As part of National Tax Security Awareness Week, the IRS is reminding individuals to take extra steps to protect themselves from cybercriminals. Thieves can use your data to file fraudulent tax returns or turn stolen data into quick cash. Avoid unprotected Wi-Fi hotspots that may allow thieves to view transactions. Another prevention tip is to “keep a clean machine”; that is, use security software to protect devices against malware designed to steal data.

Dec
10
2018

RMD Reminder

Don’t forget to take required minimum distributions (RMDs). Taxpayers who are at least age 70-1/2 must take a 2018 RMD from their IRAs, 401(k) plans or other employer-sponsored retirement plans before year end. Failure to do so can bring a penalty of 50% of the amount of the RMD that should have been withdrawn. If you turned 70-1/2 in 2018, you can delay the first distribution to 4/1/19, but you’ll need to take another RMD before the end of 2019.

Dec
10
2018

A Few Important Points

With the next tax season rolling up fast, the IRS is reminding taxpayers of a few points. It’s important to keep copies of previous-year returns for at least 3 years, or 7 years if you claim certain security or debt losses. The information on those returns may be needed for current-year filing or to answer IRS questions. Return transcripts can be ordered for free online and by mail or phone, but plan ahead, as delivery can take up to 30 days.

Dec
10
2018

Positive Mind

Dec
09
2018

Large Gifts

There’s no cause for concern, says the IRS, for individuals making large gifts in the years 2018 through 2025. The Tax Cuts and Jobs Act significantly raised the estate and gift tax exemptions for those years, after which the exemptions are scheduled to drop back to pre-2018 levels. The IRS recently announced that individuals who intend to make large gifts between 2018 and the end of 2025 can do so without concern about losing the tax benefit of the higher exemption level once it decreases after 2025.

Dec
08
2018

Reminder

The IRS is reminding taxpayers that like-kind exchange tax treatment is now generally limited to exchanges of real property. Effective 1/1/18, exchanges of personal or intangible property such as machinery, equipment, vehicles, artwork, collectibles, and intellectual property generally no longer qualify for nonrecognition of gain as like-kind exchanges. Like-kind exchange treatment now applies only to exchanges of real property held for use in a trade or business or for investment. Real property includes land and generally anything built on or attached to it.

Dec
07
2018

Family Tax Credits

The Tax Cuts and Jobs Act revised family tax credits for 2018. To help taxpayers prepare for the 2019 filing season, the IRS recently issued a reminder about the changes. The law doubled the maximum child tax credit to $2,000 and raised the income limits to claim the credit. A child must also have a valid Social Security number before the due date of the tax return, including extensions. A second credit of up to $500 per dependent is aimed at taxpayers supporting older children and other relatives who don’t qualify for the child tax credit.