If you’re a regular reader of the Tax Reduction Letter, you know that the Tax Cut and Jobs Act can cause you some real pain. But in this article, we have good news — and here it is … Thanks to tax reform, you now have a more favorable and permanent Section 179 deduction for qualified assets placed in service starting in 2018. In fact, the new, improved Section 179 … [Read more...]
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Is your spouse robbing you of your 199A deduction?
Recent changes in the tax law provide a hefty 20-percent Section 199A tax deduction for lots of lucky taxpayers. But not for everyone. “In-favor” business owners are winners. “Out-of-favor” business owners are losers. What happens when an in-favor owner marries an out-of-favor owner? Does one spouse rob the other of their valuable 20-percent deduction? You’ll get the … [Read more...]
Beat some of the new limits on state tax deductions
Tax reform under the Tax Cuts and Jobs Act has put your state and local tax deductions in the crosshairs. Thanks to lawmakers, your federal deductions for state income taxes now can’t exceed a $10,000 ceiling. And that’s just for starters. But don’t lose heart. Once again the Tax Reduction Letter comes to the rescue with specific strategies you can use to keep more money in … [Read more...]
Does moving your W-2 to Schedule C increase your taxes?
If you qualify to report your W-2 wages on Schedule C (to avoid losing your employee business expenses), will you get any credit for the FICA taxes withheld from your W-2? And another question … would you get any credit for the employer matching the FICA taxes? If you believe that a large part of your tax savings could go down the drain (through the additional … [Read more...]
Don’t let the “cliff” kill your new Section 199A deduction
Thanks to Section 199A of the new tax law, you could wind up with a nice 20-percent deduction worth as much as $63,000. Or you could wind up with nothing. Zero. Zip. Why is your deduction at risk and what can you do to make sure you come out a winner? Here’s the answer. Take a minute and read my new article titled Tax Tips: Don’t Let the Cliff Kill Your New Section 199A … [Read more...]