BHT&D Certified Public Accountants Blog

How Will Alimony Payments Be Taxed After 2018?

Posted by Joe Turnes on Fri, Nov 09, 2018 @ 08:00 AM

Alimony is the term used for payments to a separated spouse or ex-spouse as part of a divorce or separation agreement. Since 1985, to be alimony for tax purposes, the payments:

  • Must be in cash, paid to the spouse, ex-spouse, or a third party on behalf of a spouse or ex-spouse; 
  • Must be required by a decree or instrument incident to a divorce, a written separation agreement, or a support decree;
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Tags: Tax Reform, Individual Tax, TCJA, Strategic Planning, Alimony

Are You Prepared For The Income Tax Changes In 2018 and Beyond?

Posted by Joe Turnes on Fri, Nov 02, 2018 @ 12:00 PM

Tax reform has changed the way most taxpayers need to think about and plan for their taxes. It is no longer business as usual. Advanced planning will become very important long before tax time next year.

For most taxpayers, the most significant change is the increase in their standard deduction, which on the surface seems like a big benefit. But, don’t overlook the fact that the same tax reform that nearly doubled the standard deduction took away the personal exemption as a deduction.

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Tags: Itemizing Deductions, Tax Planning, Tax Deductions, Tax Deductible Travel Expenses, Business Tax, Individual Tax, TCJA

New Tax Law Gives Pass-Through Businesses A Valuable Deduction

Posted by Joe Turnes on Fri, Aug 31, 2018 @ 07:00 AM

Although the drop of the corporate tax rate from a top rate of 35% to a flat rate of 21% may be one of the most talked about provisions of the Tax Cuts and Jobs Act (TCJA), C corporations aren’t the only type of entity significantly benefiting from the new law. Owners of non-corporate “pass-through” entities may see some major — albeit temporary — relief in the form of a new deduction for a portion of qualified business income (QBI).

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Tags: Small Business Accounting, Small Business, Individual Tax, TCJA

The TCJA's Affect On Employee Business Expense Deductions

Posted by Joe Turnes on Mon, Mar 26, 2018 @ 08:00 AM

If you are an employee (i.e., a W-2 wage earner) with substantial work-related business expenses, the Act was not kind to you. It suspended (and effectively repealed), for 2018 through 2025, all miscellaneous itemized deductions, which were previously only subject to a floor of 2% of adjusted gross income (AGI). Employee business expenses are included in that category of miscellaneous itemized deductions. 

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Tags: Itemizing Deductions, Small Business Accounting, Small Business, Individual Tax, TCJA

New Tax Law Severely Limits Business Entertainment Deductions

Posted by Joe Turnes on Wed, Mar 07, 2018 @ 07:00 AM

If you are a business owner who is accustomed to treating clients to sporting events, golf getaways, concerts and the like, we have some bad news for you. The GOP’s tax-reform bill that President Trump signed on December 22nd of last year eliminated the business-related deduction for entertainment, amusement or recreation expenses, effective beginning in 2018.

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Tags: Business Tax, Small Business, Tax Reform, TCJA

Will Your 2018 Withholding Be Right?

Posted by Joe Turnes on Tue, Feb 13, 2018 @ 07:00 AM

One of the first trouble spots of the new tax reform is the W-2 withholding for 2018. Passage of the new law in late December hasn’t given the IRS much time to develop new withholding tables. This can be a big issue, as the recent Tax Cuts & Jobs Act (TCJA) substantially altered the tax rates and standard deductions, did away with exemption deductions, and increased the child tax credits—all elements of how the withholding allowances and tables have been structured in the past. 

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Tags: Payroll Tax, Small Business, Tax Reform, Individual Tax, TCJA