2018 Tax Reform – How do the changes affect you?

In December 2017, the President signed into law the Tax Cuts and Jobs Act (“Tax Act” or “Act”), which introduces the most significant changes to the U.S. tax system since 1986. With a few exceptions, the provisions are generally effective starting in 2018. However, many of the changes are temporary and scheduled to sunset after 2025. Although the Tax Act may provide simplification in a few aspects by eliminating tax provisions, there are also added complexities. Due to the number of changes, as well as some new concepts introduced in the law, there is a need for guidance from the…

A Deduction a Day Keeps the Taxes Away

With the new standard deduction amounts being introduced in 2018, it might not be reasonable for taxpayers to itemize their deductions moving forward. However, if you still plan to itemize, here are some notable changes that you should take into account for 2018. Capping of the State and Local Taxes Deductions (SALT) The number to remember is $10,000. For the year 2018, all state and local income, sales, and property taxes combined are capped at $10,000. This only applies to amounts listed on schedule A and do not affect sales and property taxes that are on Schedule C, Schedule E,…

Medical Expenses for Misbehaved Children?

Do you have a child with behavioral issues? Did you know that expenses for the treatment as well as tuition for boarding schools may qualify as a medical expense? According to IRC Section 213, expenses paid for medical care of the taxpayer, spouse or a dependent may be allowed as a deduction. The Code gives us their definition of “medical care” which includes the diagnosis, cure, mitigation, treatment, or prevention of disease. Keep in mind that in order to deduct medical expenses, you must itemize deductions under Schedule A. The medical expenses must also exceed 10 percent of your adjusted…

Draft “Postcard” Tax Return released by US Treasury

This final week in June has seen the release of the first draft of the upcoming 2018 “Postcard” Tax Return from the US Treasury. After months of waiting, we are finally getting a glimpse of the changes that will be impacting next year’s tax season, even if in preliminary form. Next year’s Individual Income Tax Return – Form 1040 will replace the current version of Form 1040, as well as the current Forms 1040-A & 1040-EZ.  All individual taxpayers will now be required to use the same Form 1040 to report their annual income, regardless of complexity. The new Form…

After Tax Reform, Here’s What the Nonprofit Sector is Watching

By Courtney Rozen Initial estimates aren’t promising: The American Enterprise Institute projected June 18 that the law would reduce charitable giving by $17.2 billion this year, according to a static analysis. But in the six months since Republicans passed the 2017 tax act (Pub. L. No. 115-97), much of the impact is yet to be seen. For one thing, practitioners and professors who focus on nonprofit tax say there’s more to watch than just the numbers. “I think we’re all just kind of holding our breath and moving forward,” said Lisa Dietlin, a Chicago-based philanthropic adviser. Here are areas to...

Client Spotlight – American Gold Star Manor

May 29, 2018 In the words of President Terry Geiling, “American Gold Star Manor is Long Beach’s best-kept-secret,” providing independent and affordable senior living for Gold Star Mothers and Fathers, veterans, and other qualified seniors. After working alongside Terry Geiling, Glen Patrick (Chief Operating Officer), Bethann Cairns (Office Manager), and other wonderful staff members,  we have seen their passion and dedication towards the community and residents of Long Beach.   In 2015, the Manor announced a $58 million renovation, restoring and upgrading each of the 348 units on the property. We are glad to be assisting them with the accounting…