Buried within the Tax Cuts and Jobs Act of 2017 are six pages that create a massive tax-savings opportunity. Sections 1400Z-1 and 1400Z-2 define a completely new tax incentive for Qualified Opportunity Zones and Qualified Opportunity Funds. In short, individuals with capital gains obtain tax benefits by investing those gains in Qualified Opportunity Funds, which, in turn, invest in economically distressed areas designated as Opportunity Zones.
It’s a hot topic, and although recent ... Read More
Last year, we discussed Internal Revenue Code §163(j) created by the Tax Cuts and Jobs Act of 2017 ("TCJA"). At the time, we knew business interest expenses were limited to 30% of Adjusted Taxable Income + business interest income + floor plan financing interest expense. We also knew businesses with gross receipts of $25 million or less were "excepted" from the limitation and that ... Read More
Memorizing the different tax brackets, rates, standard deduction amounts, etc., is near impossible for most. Unless you are an accountant, these numbers don’t come naturally. Truth be told, even we need to look up something every now and then. As a handout at our presentations, we’ve prepared a two-page 2017-2019 comparative federal tax sheet. It is extremely helpful to have at your ... Read More
By: Lana Goldina, CPA, and Dan Marques, CPA, MT
The infamous Section 199A, also known as “20% pass-through deduction,” is considered one of the most complex areas of the Tax Cuts and Jobs Act of 2017. On Friday, January 18, the IRS issued final regulations on parts of the law. Among the many issues and questions needing clarification under Section 199A is how you can elect to aggregate ... Read More
By: Dylan Haughey, CPA and Rosalind W. Sutch, CPA, MT
Hobbies are a great way to occupy your free time. If you’re lucky, you may earn a few bucks in the process and if you’re even luckier, you may earn enough to offset some or all the costs of your hobby. The IRS has strict rules about what is a hobby and what is a business and those rules matter now more than ever.
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By: Rosalind W. Sutch, CPA, MT
Everyone living or working in Philadelphia knows the significant wage tax burden that comes along with the privilege. At its height, the Philadelphia Wage Tax reached 4.96% in 1985. Since the mid-1990s, rates have slowly dropped. But did you know that certain low-income taxpayers may qualify for a 0.5% reduction in their Philadelphia Wage tax and are due a refund?
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One of the major goals of the Tax Cuts and Jobs Act of 2017 (“TCJA”) was to simplify the tax law so the average American can more easily file their federal taxes. The tax code has always had a bad reputation for being too long and too confusing. But, the TCJA’s attempt to make the tax code more approachable and comprehendible seems to be counterproductive.
The TCJA contained 1,097 pages ... Read More
You can claim the standard deduction or itemized deductions on your tax return. You can use whichever gives you the lowest tax liability, but you cannot claim both. In 2018, personal exemption amounts are no longer allowed. So, which is best for you? In today’s post, we’ll explore some facts that may help you decide.
The amount of standard deduction you can take depends on your ... Read More
Have you heard of the Tax Cuts and Jobs Act (“TCJA”)? Of course, you have. And, you’ve likely heard more about the TCJA than any other tax law before it. The last time the federal tax code was significantly transformed was in 1986, the year I was born, so the TCJA is a big deal. The question is, will states conform to the changes?
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From time to time, The Tax Warriors® at Drucker & Scaccetti call on highly skilled friends of the firm in the areas of law and wealth management to share knowledge that can help you better understand your own tax situation. Today, attorney Herbert Fineburg, of the law firm Offit Kurman discusses the changes to the PA Uniform LLC Act and how these changes may have an adverse impact on members.
The recently enacted changes under the Pennsylvania Uniform Limited Liability Company Act, 15 ... Read More
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