The new tax law is the most sweeping change in tax laws since 1986. This tax law will definitely impact you.
In particular, you may qualify for the new 20% deduction of net business income. This amount will be FREE from federal income taxes! There are, however, many moving parts when computing this deduction.
We are currently taking as many continuing education seminars and reading every authority we can in order to understand the new tax law. No one really has definitive information on how everything will shake out.
THIS INCLUDES IRS!
Joanne is currently putting together a FREE seminar which will go through the key provisions of the new tax law. We will contact you with available dates as they are set.
It’s time for Tax Planning!!!
IMPORTANT INFO ON THE NEW TAX LAW!!!
THE LARGEST TAX LAW CHANGE SINCE 1986!!!
TAX SAVINGS FOR YOU!!!
PROACTIVE TAX PLANNING = MAXIMUM TAX SAVINGS!!!
(Please read this memo in its entirety!!!)
Congress passed the Tax Cuts and Jobs Act in December which dramatically impacts 2018 returns. It is a HUGE tax law change, covering everyone from individuals to business ownerswhile also making extensive changes to the forms themselves.
THIS IS THE LARGEST TAX LAW CHANGE SINCE 1986. Having experienced both changes, I personally think this change is even greater than 1986’s.
We’ve been spending nearly every day watching webinars, etc. learning about the many facets of the new law in order to advise our clients on how the changes impact them. It is an evolving situation.
IRS promised clarifying (and preliminary) regulations to us by the end of July. They finally provided some updates recently, but there are still countless questions left unanswered. MANY of the “final” determinations/definitions will take years to solidify. But in the meantime, the new law is the new law.
FOR ALL TAXPAYERS
There are significant new tax breaks for individual taxpayers. There are changes to traditional deductions and other rules, including: (1) The tax rates themselves have gone down; (2) the child tax credit has been increased to $2,000with many more families qualifying; (3) the “marriage penalty” has been largely eliminated; (4) itemized deductions have been dramatically altered or eliminated, but the standard deduction is significantly higher; (5) alternative minimum tax is reduced or eliminated.
But do not be deceived! Have you heard about the new “postcard-sized” tax return? The return may be the size of a postcard, but it only means that ALL of the information that had appeared on the first page of the tax return has now been moved to attached schedules! Frankly, for us, this means more work, particularly when reviewing your return.
WITHHOLDING CHECKUP:We have learned that many taxpayers will find themselves in a “surprise!” situation come April because the withholding tables may not be correct for your new tax-law situation.
The W-4 (which tells your payroll department how much to withhold from your pay) is in the process of being adjusted for this, but the draft form is several pages long and too cumbersome for most people. We suggest that you contact us for a withholding checkup to verify that the amount of taxes being withheld from your paychecks is correct. Please contact our office for details.
FOR BUSINESS TAXPAYERS
Wow. Wow. Wow. There’s simply too much to talk about here – most of it VERY GOOD NEWS FOR YOU!!!
In particular, most of our business owners will get a special new tax break based on Qualified Business Income (QBI). At first glance, this break (called Section 199A), simply means that 20% of your QBI is FREE from federal tax. (Net rental income can also qualify as QBI.)
HOWEVER, as with everything from IRS, nothing is as straight-forward as it seems. THERE ARE MANY MOVING PARTS TO THE COMPUTATION OF THIS “FREE” INCOME.I’ve included a diagram showing an overview of how the break is computed, incorporating some of the moving parts. You can see that it’s very complex.
Our first concern is to contact our business clients who will need proactive tax planning. In order to make the most out of this terrific new tax break, planning is essential.
As always, decisions (asset acquisitions/depreciation, bonuses, profit-sharing contributions, etc.) can often be made throughout the year to capture maximum tax benefits. Once a plan is done, changes throughout the year as situations change will be relatively easy to incorporate into the original plan.
We will not be able to wait until the last minute to fully plan for these important changes impacting you. Proactive tax planning = maximum tax savings.
Please contact us for tax planning now.
What do you need to do? Call us at 440-255-0707!
STOP! New Tax Laws are coming in 2018!
There are sweeping changes that require quick tax moves!
What do you need to do? Call us at 440-255-0707!
The new Tax Law will be crazy!!! If you own a small business, 20% of your income will be tax-free in 2018!
We can help you make the right tax moves, but time is running out!