The Tax Cuts and Jobs Act of 2018 changed both the type of mortgage interest that can be deducted as well as the amount of interest that can be deducted. Acquisition Debt vs. Equity Debt Acquisition Debt is incurred in acquiring, constructing, or substantially improving any qualified
Read more →After years of saving for retirement, it’s time to start using those savings—even if you don’t really need to. Once you reach 70 ½ years old, you must begin taking annual distributions from your qualified retirement plan. This is called a required minimum distribution (RMD.) If you
Read more →As 2020 rolls in right around the corner, you may be thinking of things like New Year’s resolutions and dreams you’ve had year after year. One big dream that a lot of people have is starting a business. Deciding to start your own business is a big
Read more →If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to
Read more →As your tax professional, we may be asking you additional questions next year that are required by the Tax Cuts and Jobs Act. Tax preparers must collect new information from clients who qualify for any of the following tax credits: Earned Income Tax Credit (EIC) Child Tax
Read more →Under the 2018 Tax Cuts and Jobs Act guidelines, a taxpayer may be able to claim a $500 credit for household dependents that don’t meet the definition of a qualifying child or qualifying relative. Provided that the individual has income of less than $4,150 and meets the
Read more →In July 2019, the IRS released a draft of form 1099-NEC, which is designed to report non-employee compensation. While this may seem like a new form to many, it’s actually a revival of a form used until the early 1980’s, which was eventually replaced by form 1099-MISC.
Read more →If you receive an audit notice from the IRS, do not panic. Just breathe! Read the letter in its entirety to see what they are auditing. In many cases, it’s a great idea to hire a tax representation professional to deal with the audit, especially if it’s
Read more →If you’re involved in a lawsuit or a court case (except as a juror), you may want to get up to speed on how court settlements and judgements are taxed. Settlements and judgements are taxed the same—if you win a judgement or settle a case, the same
Read more →The Tax Cuts and Jobs Act created a new tax incentive to defer (and possibly even eliminate) capital gains taxes by investing in a Qualified Opportunity Zone (QOZ). What is a Qualified Opportunity Zone? A Qualified Opportunity Zone is an economically distressed community. For an area to
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