The Tax Cuts and Jobs Act created a new tax-planning strategy called “Qualified Opportunity Funds.” It was designed to provide a new qualified-opportunity-fund tax-deferral strategy that can also eliminate some capital gains and make others tax-free. Our take on qualified opportunity funds? We believe they do provide an ability to defer (and possibly eliminate) some … [Read more...]
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Tax reform sticks it to business startups that lose money
There’s a provision in the Tax Cuts and Jobs Act that we believe is terribly unfair to business start-ups and struggling business owners. You see, the rule prevents you from using all your business losses against non-business income if the losses are considered to be too large. (That determination is made by Congress.) If you want to find out how this onerous new law can … [Read more...]
Seven answers to your Section 199A questions
The Tax Cuts and Jobs Act added a new tax code Section 199A that gives business owners of pass-through businesses a possible 20-percent tax deduction on business income. Sounds good, And it is good. But as you can imagine, some important questions arise that need definitive answers. In this issue of the Tax Reduction Letter we’re going to ask the questions that our … [Read more...]
Defeating the kiddie tax after tax reform
When it comes to the kiddie tax, the IRS isn’t kidding around. Thanks to the Tax Cuts and Jobs Act, there are new changes in the law for tax years 2018 through 2025. For those years, the Tax Cuts and Jobs Act taxes a portion of an affected child’s or young adult’s unearned income at the federal income tax rates paid by trusts and estates. And those rates are … [Read more...]
2018 last-minute vehicle purchases to save on taxes
Do you need a replacement business car, SUV, van, or pickup truck? Then hurry to your dealership and buy now! No. I’m not a car dealer trying to make a sale. I’m an accountant trying to get you a big tax deduction for 2018! Here’s the story… Thanks to the Tax Cuts and Jobs Act, you can now write off the cost of a vehicle-purchase faster than ever before, including, in … [Read more...]