Certified Public Accountant
OUR 41ST ANNIVERSARY 1978-2019
26 Brighton Street
Belmont, MA 02478
ph: 617-484-1816
fax: 617-484-3467
russ
OK Democrats here's your turn.....Hillary Clinton will increase the capital gains tax to as much as 39.6% (from it's current maximum rate of 20%) This is in addition to the 3.8% Medicare (Obamacare) surtax on investment income. She would also cap itemized deductions for the high earner and make the the American Opportunity Credit (tuition credit) a permanent fixture.....Bernie Sanders will raise the maximum tax rate for high earners to 50% from 39.6%. He will also raise estate tax and Social Security taxes on high earners. He would also impose a 0.5% tax on stock trades to fund his his plan for free college tuition at public universities.
I will update as we get deeper into the election season and as most Republicans drop out of the race.
Republican update: Trump will overhaul the IRS code to reduce tax and create incentives for more hiring. Cut rates...cut estate taxes...end the marriage penalty...That's a lot of promises !!.....Carly Fiorina merely wants to scrap the 70,000 page IRS tax code and replace it with "tax simplification". Easier said than done.
January 31, 2015
I get a number of calls each year from clients saying that they were contacted by telephone by an IRS Agent about unpaid taxes from a previous year. The Agent will state that you are liable for this tax and if payment is not received immediately you could be arrested. The Agent will provide you with their name and IRS badge number and may also know the last four digits of your social security number. The caller ID information on your phone may even appear as if they are calling from the IRS.
These are obviously scams phishing for payment via prepaid cards or wire transfers.
Please note the following:
1.The IRS will never make demands a for tax debt to be paid using prepaid debit cards or wire transfers.
2. The IRS does not know your Email address and will never contact you via Email or Fax
3. The IRS does not contact you about discrepancies or unpaid taxes by phone. They will always contact you via US mail.
If you are contacted by scammers don’t provide any bank account or other personal information to them. Just hang up the phone.
Call and report the incident to the Treasury Inspector General for Taxpayer Administration (TIGTA) at 800-366-4484.
Forward emails from the "IRS" to phishing@irs.gov. Don’t open any attachments or click on any links in those emails.
File a complaint with the Federal Trade Commission at ftc.gov/complaint. Include “IRS Telephone Scam" in your complaint.
If you are concerned that your identity has been stolen contact one of the credit reporting agencies' fraud alert departments and place a fraud alert on your credit report
Equifax Fraud Department
Call 1-800-525-6285
www.equifax.com
Experian Fraud Department
Call 1-888-397-3742
www.experian.com
TransUnion Fraud Department
Call 1-800-680-7289
www.transunion.com
1. Exclusion for cancellation of debt income on primary residences
2. Exclusion for qualified small business stock
3. Transit benefits
4. Classroom expense deduction
5. Tuition and fees deduction
6. Deduction for mortgage insurance premiums
7. Deduction for state and local tax
8. Contributions of real property made for conservation purposes
9. Energy credit for residential home owners
10. Work Opportunity tax credit
11. Expanded Section 179 (expensing) deduction for business
12. Bonus depreciation
13. IRA direct distributions to charity
Taxpayers should note that the 2014 tax season opens on January 31, 2014. In most years, the filing season opens on January 21. However, due to the 16-day government shutdown that took place in October 2013, the filing season is delayed by 10 days this year. No returns, paper or electronic, will be processed by the IRS before this date. The April 15 tax deadline is set by statute and will not change.
In the wake of the August 29, 2013 IRS Revenue Ruling 2013-17 all same sex married couples must now be treated as married for Federal income tax, gifting and estate tax purposes regardless of whether the couple resides in a state recognizing same-sex marriage.
Legally married same-sex couples must either file as married filing jointly or married filing separately in 2013. Legally married same-sex couples do not have the option to continue to file as single individuals. This law change may be very helpful or very harmful depending on the total income and deductions of each spouse.
If you and your spouse are both Massachusetts residents and clients of mine, you will be filling out only one income tax questionnaire and filing just one Federal/MA income tax return for 2013. If you are a client and your spouse is not, you will have to determine which spouse’s accounting firm will be preparing your 2013 returns. If I am not chosen to prepare your 2013 returns, I will do everything to assist in a smooth information transition with you spouse’s firm.
If you have any questions about the new law please feel free to contact my office for assistance.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
3.8% on unearned income.
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
1. Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
Repeal of Obamacare and the Medicare surtax of 0.9% on earned income and
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
On Friday, January 20th Donald Trump will be sworn in as our 45th President. Like him or not, here are some major changes we can expect him to propose in the next twelve months:
2. Consolidation of income tax brackets (currently seven) into three brackets with a
top rate of 33% (currently 39.6%).
3. Elimination of the Alternative Minimum Tax (AMT) . This is estimated to cost
$30 billion to accomplish. See below regarding the history of the AMT and the
permanent fix to protect millions of middle class taxpayers from this tax.
4. Retaining the maximum capital gains tax of 20% (up from 15% prior to 2014).
5. Cut business taxes for C-Corporations, LLC Partnerships, S-Corporations and
for self employed individuals to just 15%.
6. Elimination of the Estate Tax, but not without a cost. The “stepped up basis” for
inherited assets will be repealed as well.
Much of the criticism of Trump's tax plans are that he would give the biggest breaks to the highest earners. Yet Trump firmly believes that loosening of capital at the top will encourage investment, create jobs and fuel economic growth. Trump hopes to eliminate the Alternative Minimum Tax (see number 3 above). The AMT is an unfair tax that continues to be a burden on higher earning taxpayers. Enacted in 1970 it affected just 155 high income filers that paid no taxes. Today it affects millions of taxpayers. In an effort to eliminate this tax for many middle class taxpayers Congress enacted temporary relief during each of the last several years by passing what is called a “patch”. This patch raises the AMT exemption so that fewer people would end up paying the AMT. Congress has now permanently extended the patch and has also indexed the exemption for inflation. For 2016 the AMT exemption increases to $83,800 for married couples filing jointly and $53,900 for single filers.
Many clients have asked about options they have in light of the Equifax security breach. Here is a quick summary of your options in plain English. Doing "nothing" should not be an option. Protect yourself !!
1. Place a "Fraud Alert" on your credit file..............One of the first steps you should consider taking if you suspect you are a victim of identity theft is to place a fraud alert with one of the three credit reporting bureaus. You only have to do this with one of the bureaus. A fraud alert is a notice on your credit file that lets lenders know that they should contact you and verify your identity before approving you for new credit. There is no cost to place a fraud alert on your report however it only lasts for 90 days and must continually be renewed. There is also the option to apply for an extended fraud alert that will last for 7 years.
2. Place a "Security or Credit Freeze" on your credit file.............This is the next step in providing more protection . A great idea especially if you believe you have had information stolen and are at high risk of fraud. A security freeze will stop creditors from looking at or accessing your credit file entirely. Only those you authorize to view your credit report will be able to access it, You can pick and choose specific creditors to look at your credit report. There may be charges for a security freeze depending on your state of residence and whether or not you were a victim of identity theft. Some states also have a fee for lifting the security freeze . In Massachusetts a Security or Credit Freeze will stay on your report until you remove it . This varies by state. Be careful when you institute a credit freeze as once it is placed, it may delay approval for new credit as creditors may not be able to see your report to evaluate your financial standing.
3. Place a "Credit Lock" on your credit report...............A credit lock is a service offered by credit reporting company Equifax that is similar to a security freeze with some exceptions. A credit lock gives you the power to block access to your Equifax credit file like a security freeze. However, the difference is that this credit lock allows you to lock and unlock your account online easily rather than having to verify your identity every time you want to lift or place a security freeze.There is an annual fee associated with the credit lock service and will last until you stop paying the annual fee. The credit lock only works for Equifax and not the other two credit reporting companies. Equifax has waived the credit lock fee through November 21, 2017.
I hope this helps
Many clients have asked about options they have in light of the Equifax security breach. Here is a quick summary of your options in plain English. Doing "nothing" should not be an option. Protect yourself !!
1. Place a "Fraud Alert" on your credit file..............One of the first steps you should consider taking if you suspect you are a victim of identity theft is to place a fraud alert with one of the three credit reporting bureaus. You only have to do this with one of the bureaus. A fraud alert is a notice on your credit file that lets lenders know that they should contact you and verify your identity before approving you for new credit. There is no cost to place a fraud alert on your report however it only lasts for 90 days and must continually be renewed. There is also the option to apply for an extended fraud alert that will last for 7 years.
2. Place a "Security or Credit Freeze" on your credit file.............This is the next step in providing more protection . A great idea especially if you believe you have had information stolen and are at high risk of fraud. A security freeze will stop creditors from looking at or accessing your credit file entirely. Only those you authorize to view your credit report will be able to access it, You can pick and choose specific creditors to look at your credit report. There may be charges for a security freeze depending on your state of residence and whether or not you were a victim of identity theft. Some states also have a fee for lifting the security freeze . In Massachusetts a Security or Credit Freeze will stay on your report until you remove it . This varies by state. Be careful when you institute a credit freeze as once it is placed, it may delay approval for new credit as creditors may not be able to see your report to evaluate your financial standing.
3. Place a "Credit Lock" on your credit report...............A credit lock is a service offered by credit reporting company Equifax that is similar to a security freeze with some exceptions. A credit lock gives you the power to block access to your Equifax credit file like a security freeze. However, the difference is that this credit lock allows you to lock and unlock your account online easily rather than having to verify your identity every time you want to lift or place a security freeze.There is an annual fee associated with the credit lock service and will last until you stop paying the annual fee. The credit lock only works for Equifax and not the other two credit reporting companies. Equifax has waived the credit lock fee through November 21, 2017.
I hope this helps
Many clients have asked about options they have in light of the Equifax security breach. Here is a quick summary of your options in plain English. Doing "nothing" should not be an option. Protect yourself !!
1. Place a "Fraud Alert" on your credit file..............One of the first steps you should consider taking if you suspect you are a victim of identity theft is to place a fraud alert with one of the three credit reporting bureaus. You only have to do this with one of the bureaus. A fraud alert is a notice on your credit file that lets lenders know that they should contact you and verify your identity before approving you for new credit. There is no cost to place a fraud alert on your report however it only lasts for 90 days and must continually be renewed. There is also the option to apply for an extended fraud alert that will last for 7 years.
2. Place a "Security or Credit Freeze" on your credit file.............This is the next step in providing more protection . A great idea especially if you believe you have had information stolen and are at high risk of fraud. A security freeze will stop creditors from looking at or accessing your credit file entirely. Only those you authorize to view your credit report will be able to access it, You can pick and choose specific creditors to look at your credit report. There may be charges for a security freeze depending on your state of residence and whether or not you were a victim of identity theft. Some states also have a fee for lifting the security freeze . In Massachusetts a Security or Credit Freeze will stay on your report until you remove it . This varies by state. Be careful when you institute a credit freeze as once it is placed, it may delay approval for new credit as creditors may not be able to see your report to evaluate your financial standing.
3. Place a "Credit Lock" on your credit report...............A credit lock is a service offered by credit reporting company Equifax that is similar to a security freeze with some exceptions. A credit lock gives you the power to block access to your Equifax credit file like a security freeze. However, the difference is that this credit lock allows you to lock and unlock your account online easily rather than having to verify your identity every time you want to lift or place a security freeze.There is an annual fee associated with the credit lock service and will last until you stop paying the annual fee. The credit lock only works for Equifax and not the other two credit reporting companies. Equifax has waived the credit lock fee through November 21, 2017.
I hope this helps
Many clients have asked about options they have in light of the Equifax security breach. Here is a quick summary of your options in plain English. Doing "nothing" should not be an option. Protect yourself !!
1. Place a "Fraud Alert" on your credit file..............One of the first steps you should consider taking if you suspect you are a victim of identity theft is to place a fraud alert with one of the three credit reporting bureaus. You only have to do this with one of the bureaus. A fraud alert is a notice on your credit file that lets lenders know that they should contact you and verify your identity before approving you for new credit. There is no cost to place a fraud alert on your report however it only lasts for 90 days and must continually be renewed. There is also the option to apply for an extended fraud alert that will last for 7 years.
2. Place a "Security or Credit Freeze" on your credit file.............This is the next step in providing more protection . A great idea especially if you believe you have had information stolen and are at high risk of fraud. A security freeze will stop creditors from looking at or accessing your credit file entirely. Only those you authorize to view your credit report will be able to access it, You can pick and choose specific creditors to look at your credit report. There may be charges for a security freeze depending on your state of residence and whether or not you were a victim of identity theft. Some states also have a fee for lifting the security freeze . In Massachusetts a Security or Credit Freeze will stay on your report until you remove it . This varies by state. Be careful when you institute a credit freeze as once it is placed, it may delay approval for new credit as creditors may not be able to see your report to evaluate your financial standing.
Many clients have asked about options they have in light of the Equifax security breach. Here is a quick summary of your options in plain English. Doing "nothing" should not be an option. Protect yourself !!
I hope this helps
So we now have a House and a Senate version of this massive tax bill. There are a number of significant differences that must be resolved before a final version can be sent to the President for his signature. These issues will be resolved by the House and Senate conference committee. I am not addressing the entire tax bill here....just the major differences that need to be resolved in Committee.
Individual tax rates.….The House bill reduces the number of brackets to four (top bracket 39.6%). The Senate bill retains the current seven brackets (top bracket of 38.5%)
Child tax credit…..The child tax credit is increased to $1,600 in the House bill and $2,000 in the Senate bill.
Mortgage interest deduction…..The House bill caps the interest deduction on $500K for new purchases. The Senate bill keeps it at $1M
Medical expenses…..The House bill repeals the medical deduction. The Senate bill maintains the deduction and drops the current 10% threshold to 7.5% of adjusted gross income.
Affordable Care Act's Individual Mandate.....The House bill preserves the individual mandate. The Senate bill repeals the individual mandate.
Individual tax on Pass Through entities (S-Corps or LLC’s) and for sole proprietors…..The House bill drops the top rate to 25% while also phasing in a lower rate of 9% for businesses that earn under $75K. The House bill prohibits anyone providing personal services (e.g. Lawyers, Accountants, Architects, Consultants, etc) from taking advantage of the lower rate. The Senate bill lowers taxes by allowing pass through entities and sole proprietors to deduct 23% of their income. The 23% deduction is prohibited for anyone in the service business except those with taxable incomes under $500K (married) and $250K (Single)
Corporate tax rate reduction start date…..Both bills cut the Corporate tax rate to 20% yet the House bill cuts begin on January 1, 2018 while the Senate bill cuts begin in 2019.
Estate tax…..The House bill repeals the estate tax. The Senate bill essentially doubles the Federal estate tax exemption.
Student loan interest…..The House bill repeals the deduction. The Senate bill maintains the deduction.
Alternative Minimum Tax…..The House bill eliminates the AMT. The Senate bill maintains the AMT but raises the amount of income exempt from it.
Teacher out of pocket expenses…..The House bill eliminates the current $250 deduction. The Senate bill maintains the deduction and raises it to $500.
So we now have a House and a Senate version of this massive tax bill. There are a number of significant differences that must be resolved before a final version can be sent to the President for his signature. These issues will be resolved by the House and Senate conference committee. I am not addressing the entire tax bill here....just the major differences that need to be resolved in Committee.
Individual tax rates.….The House bill reduces the number of brackets to four (top bracket 39.6%). The Senate bill retains the current seven brackets (top bracket of 38.5%)
Child tax credit…..The child tax credit is increased to $1,600 in the House bill and $2,000 in the Senate bill.
Mortgage interest deduction…..The House bill caps the interest deduction on $500K for new purchases. The Senate bill keeps it at $1M
Medical expenses…..The House bill repeals the medical deduction. The Senate bill maintains the deduction and drops the current 10% threshold to 7.5% of adjusted gross income.
Affordable Care Act's Individual Mandate.....The House bill preserves the individual mandate. The Senate bill repeals the individual mandate.
Individual tax on Pass Through entities (S-Corps or LLC’s) and for sole proprietors…..The House bill drops the top rate to 25% while also phasing in a lower rate of 9% for businesses that earn under $75K. The House bill prohibits anyone providing personal services (e.g. Lawyers, Accountants, Architects, Consultants, etc) from taking advantage of the lower rate. The Senate bill lowers taxes by allowing pass through entities and sole proprietors to deduct 23% of their income. The 23% deduction is prohibited for anyone in the service business except those with taxable incomes under $500K (married) and $250K (Single)
Corporate tax rate reduction start date…..Both bills cut the Corporate tax rate to 20% yet the House bill cuts begin on January 1, 2018 while the Senate bill cuts begin in 2019.
Estate tax…..The House bill repeals the estate tax. The Senate bill essentially doubles the Federal estate tax exemption.
Student loan interest…..The House bill repeals the deduction. The Senate bill maintains the deduction.
Alternative Minimum Tax…..The House bill eliminates the AMT. The Senate bill maintains the AMT but raises the amount of income exempt from it.
Teacher out of pocket expenses…..The House bill eliminates the current $250 deduction. The Senate bill maintains the deduction and raises it to $500.
So we now have a House and a Senate version of this massive tax bill. There are a number of significant differences that must be resolved before a final version can be sent to the President for his signature. These issues will be resolved by the House and Senate conference committee. I am not addressing the entire tax bill here....just the major differences that need to be resolved in Committee.
Individual tax rates.….The House bill reduces the number of brackets to four (top bracket 39.6%). The Senate bill retains the current seven brackets (top bracket of 38.5%)
Child tax credit…..The child tax credit is increased to $1,600 in the House bill and $2,000 in the Senate bill.
Mortgage interest deduction…..The House bill caps the interest deduction on $500K for new purchases. The Senate bill keeps it at $1M
Medical expenses…..The House bill repeals the medical deduction. The Senate bill maintains the deduction and drops the current 10% threshold to 7.5% of adjusted gross income.
Affordable Care Act's Individual Mandate.....The House bill preserves the individual mandate. The Senate bill repeals the individual mandate.
Individual tax on Pass Through entities (S-Corps or LLC’s) and for sole proprietors…..The House bill drops the top rate to 25% while also phasing in a lower rate of 9% for businesses that earn under $75K. The House bill prohibits anyone providing personal services (e.g. Lawyers, Accountants, Architects, Consultants, etc) from taking advantage of the lower rate. The Senate bill lowers taxes by allowing pass through entities and sole proprietors to deduct 23% of their income. The 23% deduction is prohibited for anyone in the service business except those with taxable incomes under $500K (married) and $250K (Single)
Corporate tax rate reduction start date…..Both bills cut the Corporate tax rate to 20% yet the House bill cuts begin on January 1, 2018 while the Senate bill cuts begin in 2019.
Estate tax…..The House bill repeals the estate tax. The Senate bill essentially doubles the Federal estate tax exemption.
Student loan interest…..The House bill repeals the deduction. The Senate bill maintains the deduction.
Alternative Minimum Tax…..The House bill eliminates the AMT. The Senate bill maintains the AMT but raises the amount of income exempt from it.
Teacher out of pocket expenses…..The House bill eliminates the current $250 deduction. The Senate bill maintains the deduction and raises it to $500.
So we now have a House and a Senate version of this massive tax bill. There are a number of significant differences that must be resolved before a final version can be sent to the President for his signature. These issues will be resolved by the House and Senate conference committee. I am not addressing the entire tax bill here....just the major differences that need to be resolved in Committee.
Individual tax rates.….The House bill reduces the number of brackets to four (top bracket 39.6%). The Senate bill retains the current seven brackets (top bracket of 38.5%)
Child tax credit…..The child tax credit is increased to $1,600 in the House bill and $2,000 in the Senate bill.
Mortgage interest deduction…..The House bill caps the interest deduction on $500K for new purchases. The Senate bill keeps it at $1M
Medical expenses…..The House bill repeals the medical deduction. The Senate bill maintains the deduction and drops the current 10% threshold to 7.5% of adjusted gross income.
Affordable Care Act's Individual Mandate.....The House bill preserves the individual mandate. The Senate bill repeals the individual mandate.
Individual tax on Pass Through entities (S-Corps or LLC’s) and for sole proprietors…..The House bill drops the top rate to 25% while also phasing in a lower rate of 9% for businesses that earn under $75K. The House bill prohibits anyone providing personal services (e.g. Lawyers, Accountants, Architects, Consultants, etc) from taking advantage of the lower rate. The Senate bill lowers taxes by allowing pass through entities and sole proprietors to deduct 23% of their income. The 23% deduction is prohibited for anyone in the service business except those with taxable incomes under $500K (married) and $250K (Single)
Corporate tax rate reduction start date…..Both bills cut the Corporate tax rate to 20% yet the House bill cuts begin on January 1, 2018 while the Senate bill cuts begin in 2019.
Estate tax…..The House bill repeals the estate tax. The Senate bill essentially doubles the Federal estate tax exemption.
Student loan interest…..The House bill repeals the deduction. The Senate bill maintains the deduction.
Alternative Minimum Tax…..The House bill eliminates the AMT. The Senate bill maintains the AMT but raises the amount of income exempt from it.
Teacher out of pocket expenses…..The House bill eliminates the current $250 deduction. The Senate bill maintains the deduction and raises it to $500.
Individual tax rates.….The House bill reduces the number of brackets to four (top bracket 39.6%). The Senate bill retains the current seven brackets (top bracket of 38.5%)
Child tax credit…..The child tax credit is increased to $1,600 in the House bill and $2,000 in the Senate bill.
Mortgage interest deduction…..The House bill caps the interest deduction on $500K for new purchases. The Senate bill keeps it at $1M
Medical expenses…..The House bill repeals the medical deduction. The Senate bill maintains the deduction and drops the current 10% threshold to 7.5% of adjusted gross income.
So we now have a House and a Senate version of this massive tax bill. There are a number of significant differences that must be resolved before a final version can be sent to the President for his signature. These issues will be resolved by the House and Senate conference committee. I am not addressing the entire tax bill here....just the major differences that need to be resolved in Committee.Individual tax rates.….The House bill reduces the number of brackets to four (top bracket 39.6%). The Senate bill retains the current seven brackets (top bracket of 38.5%)Child tax credit…..The child tax credit is increased to $1,600 in the House bill and $2,000 in the Senate bill.Mortgage interest deduction…..The House bill caps the interest deduction on $500K for new purchases. The Senate bill keeps it at $1MMedical expenses…..The House bill repeals the medical deduction. The Senate bill maintains the deduction and drops the current 10% threshold to 7.5% of adjusted gross income.Affordable Care Act's Individual Mandate.....The House bill preserves the individual mandate. The Senate bill repeals the individual mandate.Individual tax on Pass Through entities (S-Corps or LLC’s) and for sole proprietors…..The House bill drops the top rate to 25% while also phasing in a lower rate of 9% for businesses that earn under $75K. The House bill prohibits anyone providing personal services (e.g. Lawyers, Accountants, Architects, Consultants, etc) from taking advantage of the lower rate. The Senate bill lowers taxes by allowing pass through entities and sole proprietors to deduct 23% of their income. The 23% deduction is prohibited for anyone in the service business except those with taxable incomes under $500K (married) and $250K (Single)Corporate tax rate reduction start date…..Both bills cut the Corporate tax rate to 20% yet the House bill cuts begin on January 1, 2018 while the Senate bill cuts begin in 2019.Estate tax…..The House bill repeals the estate tax. The Senate bill essentially doubles the Federal estate tax exemption.
Student loan interest…..The House bill repeals the deduction. The Senate bill maintains the deduction.Alternative Minimum Tax…..The House bill eliminates the AMT. The Senate bill maintains the AMT but raises the amount of income exempt from it.
Estate tax…..The House bill repeals the estate tax. The Senate bill essentially doubles the Federal estate tax exemption.
Alternative Minimum Tax…..The House bill eliminates the AMT. The Senate bill maintains the AMT but raises the amount of income exempt from it.
Republican leaders on Wednesday reached an agreement on their final tax bill.and are aiming to hold a vote on the compromise bill early next week so that they could get the bill to Trump's desk before Christmas.
Let me be perfectly clear about this tax bill.......this does very little for most of us hard working Americans with or without kids paying thousands of dollars a year in state, local and real estate taxes. This bill benefits the rich with large earned and unearned income, major Corporations that make millions of dollars and those fortunate to die with multi million dollar estates.
As I have said in the past I do not support this bill. If it passes it should not be enacted until January 1, 2019 at the earliest.
Here are some parts of the final bill the Conference Committee is prepared to vote on:
The compromise bill now drops the maximum individual tax for the wealthiest to 37% (instead of the 38.5% proposed in the Senate bill. It would still be down from the current top rate of 39.6%.
The rate of tax for major Corporations (C-Corporations) like Microsoft, GM and Apple Computer drops from 35% to 21%.
The GOP bill would eliminate the personal exemption you take for you, your spouse and your kids and replace it with a larger standard deduction for 2018 of $12,000 for single filers and $24,000 for joint filers.
If you itemize deductions The GOP revised bill will allow you to now deduct $10,000 in either property tax or state and local income tax.
The mortgage interest deduction would be changed to limit the benefit to interest paid on $750,000 in home loans, down from the $1 million limit currently in place This is very bad news for people in places like Greater Boston and other high end real estate cities where housing costs are very high. While current homeowners are exempt from the new cap potential buyers are not making it more expensive for potential buyers to secure new mortgages.
The rate for pass-through income business entities (like S-Corporations and LLC's) that pay taxes through the individual side -- would be determined by a 20% deduction. This deduction is eliminated for profession service providers with high incomes.
The individual Alternative Minimum Tax (AMT) will remain but with a higher "standard deduction"
The estate tax exemption would be doubled to $22M.....so the tax would not be repealed entirely.
The Obamacare individual mandate to have health insurance would be repealed.
These controversial deductions in the House Bill will remain untouched in the final Committee bill:
Here are some parts of the final bill the Conference Committee is prepared to vote on:
Here are some parts of the final bill the Conference Committee is prepared to vote on:
Corporate tax rate
They settled on 21 percent, to begin immediately, which is still a huge reduction from the current 35 percent.
Individual tax rates
Most people will see small reductions in the rate they pay. The bottom rate stays at 10 percent, rising to 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and finally 37 percent for income above $500,000 for individuals and $600,000 for couples. (The comparable current rates are 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent, and 39.6 percent.)
The biggest change was the last one Republicans made, in which they decided to reduce the top marginal rate to 37 percent from 39.6 percent—lower than either the House or Senate originally proposed. There’s a big catch to all of these rates, however: To get the plan under $1.5 trillion in cost, Republicans have set them all to expire at the end of 2025, meaning Congress will have to act before then to extend them.
Standard deduction
This was the one constant in the Republican plans from start to finish: The standard deduction will nearly double, from $6,500 for individuals and $13,000 for families to $12,000 and $24,000, respectively. For many people, this will represent the biggest tax cut in the plan, and for some in high-tax states, it will offset the reduction in the state-and-local tax deduction.
The effect of doubling the standard deduction will be limited, however, by the elimination of the personal exemption. This change is the biggest example of simplifying the tax-filing process for individuals, since it will prompt more people to take the standard deduction rather than itemizing. Like the reduced tax rates, though, this provision also expires at the end of 2025.
Individual mandate
For Republicans, the icing on the cake of the tax bill is its elimination of the penalty for people who go without health insurance—a step toward the party’s promise of repealing the Affordable Care Act. This scraps a key component of the law, though the GOP will face pressure to pass other bills that mitigate its impact on premiums. The Congressional Budget Office has said as many as 13 million fewer people would have coverage after a decade due to the repeal of the individual mandate. GOP leaders initially feared doing this in the tax bill would blow up the legislation, but they didn’t face as much opposition from rank-and-file members as they expected.
This change doesn’t take effect until 2019, so people will still be on the hook for the penalty next year.
Child tax credit
Republicans had always wanted to expand the current $1,000 child tax credit, but the provision got progressively more generous as the process went along. The new credit will be $2,000 per kid, with $1,400 of that refundable following a late push by Senator Marco Rubio of Florida.
State-and-local tax deduction
The proposed elimination of this tax break, known as SALT, was the biggest and most controversial pay-for in the Republican plan from the beginning. House members representing high-tax, largely Democratic states rebelled, and GOP leaders ultimately settled on a compromise: People will be able to deduct $10,000 in state and local property, sales, or income taxes off their federal bill. An earlier proposal would have limited the deduction to property taxes, but that was broadened in the final agreement.
Mortgage-interest deduction
Interest on mortgages up to $750,000 will be deductible under the new law, a change from the $1 million current cap. This was a compromise between the Senate and the House, which had called for lowering the cap to $500,000.
Estate tax
The so-called death tax lives—but it will apply only to the super wealthy as opposed to the only very wealthy. Republicans have long wanted to repeal the estate tax, which they argue is an unfair example of double taxation that hits family-run farms and businesses. But full repeal couldn’t get through the Senate, so they settled on lifting the exemption from the 40 percent tax to $11.2 million from $5.6 million per individual.
Business-capital expensing
This was an early fight between House Republican leaders who wanted to allow businesses to write off the full cost of new buildings and equipment as a way to stimulate growth, and others in the conservative movement who prioritized lowering the corporate rate as much as possible. In the end, businesses get full and immediate expensing, but the provision will begin to phase out after five years.
Medical expenses
People who itemize their taxes will actually see a more generous deduction for medical expenses than under current law, despite an initial House proposal to kill the break entirely. After a loud political backlash to the House plan, the deduction will kick in for expenses totaling 7.5 percent of income instead of 10 percent. This provision is aimed at people who have unusually large medical bills, and Senator Susan Collins of Maine in particular fought to expand rather than eliminate it. She has said that 8.8 million Americans use it, half with annual incomes under $50,000.
Higher-education tax breaks
The final, conference version of the Tax Cuts and Jobs Act adds the new business deduction to tax law: the Sec 199A Qualified Business Income Deduction.
In a nutshell, the Sec 199A Qualified Business Income tax cut gives the owners of pass-through businesses like sole proprietors, partnerships, S corporations and then real estate investors a deduction equal to 23% 20% of qualified business income.
The AMT is a parallel tax system with a separate set of rules that some taxpayers must follow when calculating their tax liability. As its name implies, the AMT is an alternative to the regular tax system and requires taxpayers earning above a certain amount to calculate their taxes twice and pay the highest amount.
Because it follows a separate set of rules, the AMT disallows some tax preferences – such as state and local tax deductions and dependent exemptions – but provides for a larger AMT exemption amount.
Previous law: For the 2017 tax year, the AMT exemption amount for single filers is $54,300 and begins to phase out at $120,700, and for joint filers, it is $84,500 and begins to phase out at $160,900, according to the IRS.
WASHINGTON — The Internal Revenue Service today reminded employers and other businesses that Jan. 31 remains the filing deadline for wage statements and independent contractor forms.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 started a requirement for employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 7 of this form.
WASHINGTON — The Internal Revenue Service today reminded employers and other businesses that Jan. 31 remains the filing deadline for wage statements and independent contractor forms.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 started a requirement for employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 7 of this form.
IR-2018-231, November 21, 2018
WASHINGTON — The Internal Revenue Service today reminded employers and other businesses that Jan. 31 remains the filing deadline for wage statements and independent contractor forms.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 started a requirement for employers to file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. Certain Forms 1099-MISC, Miscellaneous Income, filed with the IRS to report non-employee compensation to independent contractors are also due at this time. Such payments are reported in box 7 of this form.
IMPORTANT NOTE
On January 2, 2019 we will be mailing out to each of our individual tax clients our 2018 Income Tax Questionnaire. This form should be completed prior to our annual meeting.
If you have not received our 2018 ITQ or need another copy please click on the " Income Tax Questionnaire" tab at the top of this page. You can then print out individual pages or the entire form.
You may also contact my office at 617-484-1816 and we will mail you a copy.
Christmas 1960 with my dad and my Remco Whirlybird. One of the greatest toys of the 60's
My "wall of movements"
Riley and Sonya in my above ground pool c: 2008
Oakley Country Club Senior Club Championship........Sorry to say I haven't cashed in a few years.
2018 Oakley Country Club Donahue Cup Champion
2012 Woodland Country Club Member-Guest Champions
Bob and Russ Khederian
2008 Woodland Country Club Member-Guest Champions
Bob and Russ Khederian
3 Stooges Hand Puppets c:1959
Christmas 1959 with brother Bob and our 3 Stooges puppets.
Beautiful Washington Monument
Smithsonian Museum of American History - Superman outfit worn by George Reeves
Camden Yards
Paris 2009-Taken where my father (US Army- Purple Heart recipient) stood in 1944 after the liberation of Paris
Copyright 2014 Russell M. Khederian, CPA. All rights reserved.
26 Brighton Street
Belmont, MA 02478
ph: 617-484-1816
fax: 617-484-3467
russ