It’s a fact. The Tax Cuts and Jobs Act (TCJA) made the C corporation a lot more attractive than in the past. Why? Because the TCJA created a flat 21% federal income tax rate. That’s a heck of a lot better than paying the 37% maximum federal income-tax rate for individual taxpayers. And there are other reasons for favoring the C corporation. However… we’re writing … [Read more...]
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Beat the Unfair $10,000 SALT Cap with a C Corporation
Do run a profitable S corporation? Then you know that before the Tax Cuts and Jobs Act (TCJA) became law, you could deduct foreign, state, and local taxes (SALT) on your Form 1040 Schedule A without limit! Well, the TCJA changed all that. Now, it caps those deductions at $10,000. What can you do to avoid some of this government picking your pocket with the TCJA? Well, … [Read more...]
Eight Answers to Questions About the SECURE Act
In late December 2019, Congress passed the “Setting Every Community Up for Retirement Enhancement Act” (SECURE). If you have questions about how the new SECURE Act affects your retirement and Section 529 planning, you are not alone. We’ve received many questions from readers of the Tax Reduction Letter that deal with the impact the SECURE Act will have on their retirement … [Read more...]
Top 8 Changes in the New SECURE Act You Need to Know Now
As year-end approached in 2019, all was not deadlocked in Washington. You see, on December 20th the president signed off on an important new law called the Setting Every Community Up for Retirement Enhancement Act of 2019, also known as the SECURE Act. The new law, explained in my new article, makes significant changes in how you can… Save money for retirementUse your … [Read more...]
Congress Reinstates Expired Tax Provisions—Some Back to 2018
This is the story of death and resurrection. No. I’m not talking about religion. I’m talking about some important changes congress made to the tax law. Let me explain… Congress, in its wisdom, left many tax breaks, called “extenders,” to expire on December 31, 2017. This means the extenders were killed for all of 2018. Ouch! Then the resurrection took place. … [Read more...]