While waiting on Arizona conformity I could have birthed an orca

Do you know that there is a stretch of freeway in Tempe that is slated to have an additional lane added in each of the north and the south bound directions? And this construction is expected to take 16 months. That seems like a long while – right? And it may be slightly annoying for …

Keep Reading

Moving on with life, deducting moving expenses

When you graduate from college, you never know where life is going to take you. My hopes following graduation were to move away from home and get a job in my degree. Luckily for me, I was able to make this happen. Two days after my graduation, I drove with my family from Michigan down …

Keep Reading

Tax reform and valuation, the big picture

We saw large increases in the value of public companies during 2017 in anticipation of the new administration’s proposals to reduce federal regulations, promote growth policies and push for tax reduction. The Dow Jones Industrial Average and the NASDAQ both increased just over 20% during 2017 and the S&P 500 index increased by almost 16% …

Keep Reading

Tax reform basis impact, business tax fun

If you’re new to our blog series, first off, welcome! We typically post various news and tidbits related to tax laws and how they may impact you and/or your business. Maybe you’ve heard, but recently there was a sweeping change to the U.S. Tax Code – the largest change in over 30 years actually. We …

Keep Reading

Big changes to moving expenses deduction

As if moving and a career change aren’t stressful enough, the rules around deducting moving expenses have dramatically shifted beginning in 2018 with the passage of the Tax Cuts & Jobs Act (TCJA). Work-related moves for 2018 and beyond Relative to qualified expenses of a work-related move, starting in 2018, both the deduction for qualified …

Keep Reading

Foreign-derived intangible income – tax reform impact

One good provision out of the new tax reform bill or Tax Cuts and Job Act (TCJA pronounced Tic-Ja) is the foreign derived intangible income or FDII. This provides domestic corporations with reduced rates of U.S. tax on their FDII. FDII is the domestic corporation’s portion of its intangible income, determined on a formulaic basis …

Keep Reading

Tax reform impacts education tax breaks

The Tax Cuts and Jobs Act modifies qualified tuition programs and the exclusion of student loan discharges from gross income. There was much debate regarding changes to other educational benefits as part of tax reform, including the elimination of the student loan interest deduction, repeal of exclusion of income for graduate student tuition waivers and modifications …

Keep Reading

Tax reform: 2018 tax rates – do they help?

All the talk about tax reform leaves everyone with many questions. The most important question we are all asking is, “how does this affect me?” The most direct way this reform affects everyone is through the tax rates. Let’s recap the rates for 2017. Then we will go through the 2018 rates and income thresholds. …

Keep Reading

What happened to my 263A (A)djustment?

First, let us explain IRC Section 263A since most people (non-accountants) probably have no idea what I am talking about, because it is something their CPA does behind the scenes and is often hard to explain. 263A requires certain costs that are normally expensed to now be capitalized as part of inventory for tax purposes. …

Keep Reading

Medical expense deduction changes under new tax law

From 1986 until 2013, the rules for deducting medical expenses remained unchanged. Expenses were only deductible to the extent that they exceeded 7.5% of a taxpayer’s adjusted gross income (AGI). This resulted in a tax deduction for only a small percentage of taxpayers with high medical expenses. One of the provisions of the Affordable Care …

Keep Reading