January is a good time to review your insurance coverage. In particular, you should be sure you have adequate auto insurance if you own or lease one or more cars. Reviewing your current policy might not be simple. You likely will find terms such as bodily damage liability, property damage liability, collision, comprehensive, personal injury […]
The Tax Cuts and Jobs Act (TCJA) of 2017 generally disallowed all deductions for business entertainment, amusement, and recreation (see the May 2018 CPA Bulletin). However, the TCJA did not specifically turn thumbs up or down on the deductibility of business meal expenses. Example: Jim Morgan, who owns a roof cleaning business, takes a prospect […]
JANUARY 2019 January 15 Individuals. Make a payment of your estimated tax for 2018 if you did not pay your income tax for the year through withholding (or did not pay enough in tax that way). Use Form 1040-ES. This is the final installment date for 2018 estimated tax. However, you don’t have to make […]
The Tax Cuts and Jobs Act (TCJA) of 2017 sharply raised the standard deduction and placed limits on itemized deductions. In particular, no more than $10,000 can be deducted in state and local tax (SALT) payments on a single or joint tax return. As a result, most people will take the standard deduction now and […]
Most people realize the importance of a will to help direct the transfer of assets after death. During your lifetime, you also may want to have a power of attorney (POA) for convenience and asset protection. The person who creates a POA is known as the principal. In the POA, an agent (known as the […]
Rewarding employees at the end of the year can brighten up their holidays and set the stage for your company to enjoy a good start to 2019. Some forethought and careful communications can avoid problems. A key first step is to check your company’s financial condition. Year-end bonuses can boost morale, but you shouldn’t pay […]
DECEMBER 2018 December 17 Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in November if the monthly rule applies. Corporations. Deposit the fourth installment of estimated income tax for 2018. JANUARY 2019 January 15 Individuals. Make a payment of your estimated tax for 2018 if you […]
The Tax Cuts and Jobs Act of 2017 (TCJA), passed at the end of last year, generally took effect in 2018. Therefore, the fourth quarter of this year provides the first real opportunity for year-end planning under what has been called the most important tax law passed in more than 30 years. Broadly, the TCJA […]
Under the new, as well as prior, tax law, taxpayers can either take a standard deduction or itemize deductions on Schedule A of IRS Form 1040. Typically, tax preparation involves comparing the total of itemized deductions with the standard deduction and choosing the larger amount. Most people have used the standard deduction and that probably […]
As explained in the article, “Sizing up the standard deduction,” more taxpayers are likely to take the standard deduction for 2018, rather than claim itemized deductions. Therefore, they’ll lose the tax benefits from their charitable contributions. Example 1: Art and Beth Dean are in their 40s and have paid off their home mortgage. They seldom […]