The Tax Cuts and Jobs Act— The Death of Alternative Minimum Tax?
The Tax Cuts and Jobs Act (TCJA) made major changes to the Alternative Minimum Tax (AMT). The minimum tax was enacted in 1969. The idea was for high-income households (with lots of deductions) to pay their share of taxes. There was a problem, though. The AMT exemptions were never indexed for inflation, so as wages…
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The Tax Cuts and Jobs Act—Changes to the Child Tax Credit
The Tax Cuts and Jobs Act (TCJA) brought major changes to the child tax credit. For tax years 2018 through 2025, the credit is doubled from $1,000 to $2,000 per qualifying child. In addition, up to $1,400 of the credit is refundable. What’s more, the income phase-out was expanded, which means more taxpayers will…
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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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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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