Alabama CPA

The Tax Cuts and Jobs Act—Few Changes for Capital Gains and Qualified Dividends  

PART 8 Sometimes the more things change, the more they stay the same. That’s the case with the Tax Cuts and Jobs Act (TCJA) as it relates to capital gains and qualified dividends. What changed? Not a lot, actually.   First of all, the tax reform act retained the same capital gains rates on long-term capital…
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Are Repairs to Tangible Property Deductible?

Repairs to tangible property, such as buildings, machinery, equipment or vehicles, can provide businesses a valuable current tax deduction — as long as the so-called repairs weren’t actually “improvements.” The costs of incidental repairs and maintenance can be immediately expensed and deducted on the current year’s income tax return. But costs incurred to improve tangible property must…
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The Tax Cuts and Jobs Act—Estate Tax Relief

The Tax Cuts and Jobs Act (TCJA) has made it easier for you to share your wealth. Prior to the TCJA, the lifetime exemption was $5.49 million. Beginning in 2018, tax reform doubles the exemption to $11.2 million per individual (a total of $22.4 million for a married couple). These limits apply for estate, gift…
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What’s your mileage deduction?

Individuals can deduct some vehicle-related expenses in certain circumstances. Rather than keeping track of the actual costs, you can use a standard mileage rate to compute your deductions. For 2017, you might be able to deduct miles driven for business, medical, moving and charitable purposes. For 2018, there are significant changes to some of these…
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Small business owners: A SEP may give you one last 2017 tax and retirement saving opportunity

Are you a high-income small-business owner who doesn’t currently have a tax-advantaged retirement plan set up for yourself? A Simplified Employee Pension (SEP) may be just what you need, and now may be a great time to establish one. A SEP has high contribution limits and is simple to set up. Best of all, there’s…
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The Tax Cuts and Jobs Act—Expanding the Cash Method of Accounting

PART 6 The Tax Cuts and Jobs Act (TCJA) allows more businesses to use simpler accounting methods, but the new laws still are complicated. So let’s take a closer look at how the changes might alter the way you do business.  For many years the use of the cash method of accounting has been limited…
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The Tax Cuts and Jobs Act—Business Deductions

PART 5 Under the Tax Cuts and Jobs Act (TCJA), business deductions have changed quite a bit. These significant changes, positive or not, will require research and action on the taxpayer’s part. Every business (or the business’s advisor) needs to sort through the various changes and fully understand the potential outcome. Section 179 Expensing Expanded…
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The Tax Cuts and Jobs Act— Individual Changes

PART 4 Let’s get personal this time. The Tax Cuts and Jobs Act (TCJA) made some significant changes to how individuals will pay taxes in 2018. Here are some of the things you need to know: Personal Exemptions Eliminated Beginning in 2018, personal exemptions are eliminated. For 2017, the exemption was $4,050 per person. The…
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Alabama Accountability Act – $15 Million in Credits Remaining

UPDATE, March 6, 2018: The tax credits are no longer available. Last month, we wrote about the federal tax benefits for Alabama taxpayers that make a donation to a scholarship granting organization (SGO) under the Alabama Accountability Act (AAA). The 2018 annual cap on donations statewide is $30 million. As of February 21, 2018, only…
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The Tax Cuts and Jobs Act— Qualified Business Income Deduction

PART 3 One of the most significant (and complicated) provisions of the Tax Cuts and Jobs Act is the new deduction available for qualifying pass-through entities. Subject to limitations, the owner of a sole proprietorship, LLC (single or multi-member), S corporation, or partnership is granted a deduction equal to 20% of “qualified business income.” The…
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