2018 Tax Law Changes- International Provisions
International Tax Provisions The new law adopts a participation exemption system that provides a 100% deduction for the foreign-source portion of dividends received from specified 10% owned foreign corporations by domestic corporations that are United States shareholders of those foreign corporations. No foreign tax credit or deduction is allowed for any taxes paid or accrued […]
2018 Tax Law Changes- Pass-Through Enttities
Pass Through Entity Taxes An individual taxpayer may deduct 20% of domestic qualified business income from partnership, S corporation or sole proprietorship. The amount of the deduction will be limited to the greater of: 50% of W-2 wages paid by the business or; The sum of 25% of W-2 wages paid by the business and […]
2018 Tax Law Changes- Estate and Trust Provisions
Estate and Trust Provisions Tax Rate Structure Rates Estate and Trusts 10% Up to $2,550 24% $2,550 to $9,150 35% $9,150 to $12,500 37% Over $12,500 Doubles the basic exclusion amount for gift and estate tax purposes from the current exclusion of $5.49 million in 2017, as indexed for inflation, […]
2018 Tax Law Changes- Business Provisions
Business Provisions Lower the top corporate tax rate from 35% to a flat 21% (the same flat rate applies to personal service corporations). Eliminates the corporate alternative minimum tax. The dividend received deductions will be reduced to 50% from the current 70% and 65% from the current 80%. This change is to account for the […]
How Do I Get Audited by the IRS? | IRS Audit Procedures | Legacy Tax & Resolution Services
How Do I Get Audited by the IRS? | IRS Audit Procedures | Legacy Tax & Resolution Services An IRS audit is a review or examination of an organization’s or individual’s returns and supporting information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax […]
2018 Tax Law Changes- Individual Provisions
Individual Provisions The act’s final version retains the seven overall tax brackets, but tax cuts are achieved by cutting the rates themselves. The final version cuts the top rate to 37% as follows: Filing Status Rates Single Married Joint Married Separate Head of Household 10% Up to $9,525 Up to $19,050 Up to $9,525 Up to […]
How Does Education Impact Your Taxes?
The kids are back in school! Things like student loans, scholarships, and fellowship grants can play a role in parents’ and college students’ tax liability. Let’s look at how education costs can impact your taxes. Student Loan Forgiveness Student debt is a hot topic. As of July 2023, total U.S. student loan debt stood at $1.774 […]
How Far Back Can the IRS Audit You? | IRS Audit Statute of Limitations | Legacy Tax & Resolution Services
How Far Back Can the IRS Audit You? | IRS Audit Statute of Limitations | Legacy Tax & Resolution Services How Many Years Back Can the IRS Audit? Most taxpayers dread the possibility of undergoing an audit by the Internal Revenue Service (IRS). No matter how careful you are, it’s still possible to make a […]
Are Holiday Office Parties Deductible?
Ask The Taxman: Are Holiday Office Parties Deductible? Holiday parties are traditionally held for employees, clients or both. The deductible of the expenses for these parties is completely dependent on the guest list and the purpose of the party. How Are Employee Holiday Office Parties Treated? IRS makes an exception to the standard 50 percent […]
Education Credits Aren’t Just For Children’s Tuition
Article Highlights: Overview Eligible Education Expenses Credit Qualifications American Opportunity Credit Lifetime Learning Credit Qualifications Who Gets the Credit If you think that education credits are just for sending your children to college, think again; the credits are available to you, your spouse (if you are married), and your dependents. Even if you or your […]