Tag: Tax Cuts and Jobs Act

QBI deduction and statutory employees

According to a recent article in the Journal of Accountancy, a little-noticed consequence of the proposed regulations on the 20% qualified business income (QBI) deduction introduced by the legislation known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, is...

IRS issues final regulations under section 199A (20% deduction)

The U.S. Department of the Treasury has issued final regulations and other guidance on a substantial provision of the Tax Cuts and Jobs Act, which allows owners of sole proprietorships, partnerships, trusts, and S corporations to deduct up to 20...

New proposed regulations on 20% QBID

The IRS recently issued proposed regulations on the 20% flow-through deduction. There is a 45-day period for people to comment, so these are not final. However, they can be relied upon until the final ones are issued, and they provide...

Tax Reform Planning Series: Bunch charitable contributions through donor-advised funds

The Tax Cuts and Jobs Act (TCJA) temporarily increases the limit on cash contributions to public charities and certain private foundations from 50% to 60% of AGI. However, standard deduction has almost doubled. Combined with the capping of the state and...

Tax Reform Planning Series: Take advantage of the new child tax credit

Before the Tax Cuts and Jobs Act (TCJA), the child tax credit was $1,000 per qualifying child, but it was reduced for married couples filing jointly by $50 for every $1,000 (or part of $1,000) by which their Adjusted Gross...

Tax Reform Planning Series: Maximize home mortgage interest deductions

Before the Tax Cuts and Jobs Act (TCJA), taxpayers could deduct interest paid on up to $1 million ($500,000 if married filing separately) of home acquisition debt (debt used to buy or substantially improve a first or second home). Also,...

Tax Reform Planning Series: New standard deduction versus itemized deductions

For 2018, joint filers can enjoy a standard deduction of $24,000 (versus $12,700 for 2017). The new standard deduction for heads of household is $18,000, and single taxpayers (including married taxpayers filing separately) can claim a standard deduction of $12,000....

Tax Reform Planning Series: Take advantage of lower tax rates and investment gains

Under the Tax Cuts and Jobs Act (TCJA), 2018 ordinary tax rates are generally lower than those for 2017. For example, the top rate has been reduced from 39.6% to 37%. (The remaining six rates are 10%, 12%, 22%, 24%,...