What's new that affects you?
Changes in the tax law are here and we want to help you navigate the landscape. Contact us during our tax planning season (usually in early fall) to identify tax planning strategies to capitalize on opportunities within the new law. For some of you with higher income, the time may be now to discuss opportunities that may exist.
Did you know?
- Due to the increase in the standard deduction and changes in itemized deductions, it is more important than ever to consider the timing of deductible expenses.
- The child tax credit has increased to $2,000 per qualifying child. Plus, more people will qualify for this credit since the threshold at which the credit is phased out is increased to $400,000 for married taxpayers and $200,000 for other taxpayers.
- There is a new $500 credit for dependents who do not qualify for the child tax credit.
- For divorces finalized after 2018, alimony payments will no longer be taxable to the recipient and no longer deductible to the payer.
- There is a new deduction for business income. The calculation and limitations are complex, but we can help you.
- With the decrease in tax rate for corporations, now may be the time to consider a change in the structure of your business.
- Expenses for entertainment are no longer deductible!
- Bonus depreciation and Section 179 expensing have been expanded for purchases of equipment and improvement property.
- More businesses will qualify to use the cash method of accounting, businesses with $25 million or less in gross receipts are eligible.