Who’s afraid of the big, bad AMT (Alternative Minimum Tax)? Before recent tax reform took effect, you’d be afraid if your AMT liability was higher than your regular federal tax liability. (You’d have to pay the difference in additional taxes.) Now that tax reform is the law, you’ve got much less to fear from the onerous AMT. The bottom line? Changes in the law mean … [Read more...]
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Tax Reform Does Much to Help Your Rental Real Estate
Do you own commercial and/or residential rental property? If you do, the recent Tax Cuts and Jobs Act provides some extremely nice benefits for you. For starters, qualified businesses income from your rental creates a possible twenty-percent tax deduction… and without any effort on your part. Plus, if you want to earn taxable income, the new law gives you enhanced bonus … [Read more...]
Did Tax Reform Goof When Disallowing Deductions for Client Meals?
In recent days, we learned that lawmakers did not intend to eliminate business meals with clients and prospects. We’re not exactly sure how lawmakers can undo what they’ve done to the tax code in this area, but experience says that if there’s a will, there’s a way. We think it may take a technical correction to the tax code, but some speculate that you could get this done … [Read more...]
Tax reform punishes W-2 employees — Get even!
The Tax Cuts and Jobs Act that passed recently, created winners and losers. One big loser is the W-2 employee. Why? Because thanks to the new law, W-2 employees’ business expenses are no longer deductible! That’s right. W-2 employees get a zero deduction for legitimate expenses. Which has them shouting, “I’m mad as hell and I’m not taking it any more!” What can you … [Read more...]
Tax reform attacks home mortgage interest deductions
Sorry to be the bearer of bad news, but here it is… Under the new Tax Cuts and Jobs Act, the home mortgage interest deduction rules did not fare well. And that’s an understatement. The simple fact is, the loss of home mortgage interest deductions means the cost of home ownership will rise a lot. Ouch! We’ll tell you the whole sad story when you read my new article Tax … [Read more...]