Your Guide to State, Local, Federal, Estate + International Taxation

Scam alert: IRS urges taxpayers to be vigilant

We are taking a small break in the tax reform blogs to let you know that the IRS has issued an alert on a growing trend in scams aimed at taxpayers. Here is how the scam works – and keep reading, because there are different versions. After stealing taxpayer data and filing fraudulent returns, the …

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Limitation on deduction for interest

If new tax laws excite you then you’re in luck. With the passing of the Tax Cut and Jobs Act, there are many changes to the code for us to explore. Several of these changes will undoubtedly decrease taxes for businesses and their owners. But the new limits on the deduction of business interest isn’t …

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Goodbye, alimony deduction – tax reform impact

The Tax Cut and Jobs Act of 2017 (TCJA) is repealing a 75-year-old deduction for alimony payments. The deduction was originally introduced in the Revenue Tax Act of 1942. When it became law, it required a “wife who [was] divorced or legally separated from her husband” to count the payments she had received as taxable …

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Individual AMT and the tax reform impact

With the new tax law in place, there are a lot of changes happening for individual income taxes, including with AMT. Under the new legislation, changes go into effect for income earned starting in 2018. Many of the tax provisions that apply to individuals are set to expire at the end of 2025 and there …

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New opportunities to use cash method of accounting

It’s time to start thinking about the most exciting time of year – tax time! As part of the modifications made by the Tax Cuts and Jobs Act of 2017 that generated so much news and discussion at the end of 2017, you may now be allowed to use the cash method of accounting for …

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Individual insurance mandate repeal

On multiple occasions over the summer, Congress unsuccessfully attempted to repeal the Affordable Care Act. Now as part of the Tax Cuts and Jobs Act, Congress has repealed the individual health insurance mandate under the Affordable Care Act. However, it comes with a catch. The repeal is effective for months after December 31, 2018. This …

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Like-kind exchange: Tax Cuts and Jobs Act of 2017

Amid the myriad of changes in the new tax law, there is a change to what type of property can be exchanged under code Section 1031 as a qualified like-kind exchange. What’s changing? Under Code Section 1031, a taxpayer can elect to not recognize gain if he/she exchanges qualified property for similar qualified property, or …

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The basics of the expanded child tax credit

Under the new tax reform bill, the Child Tax Credit was raised to $2,000 (increased $1,000 from 2017) per qualifying child. While the criteria for qualifying a child for this credit have not changed from 2017, some of the other rules are different going forward to 2018. Let’s look at how this credit is changing …

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Changes to net operating losses under tax reform

The tax law on net operating losses (NOLs) has changed with the new Tax Cuts and Jobs Act that was signed into law on December 22, 2017. The “old law” stated that an NOL is carried back two years and then carried forward 20 years. According to the “new law,” any net operating loss that …

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Kiddie tax rules revamped under tax reform

Tax professionals are busy scrutinizing the Tax Cuts and Jobs Act (TCJA) and discussing many of the important changes with their clients. One significant but rarely discussed provision of the new bill is the revamp of the kiddie tax rules. Kiddie tax applies to the special rules on net unearned income of children under the …

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