We’re answering your questions on how the Tax Cuts and Jobs Act are affecting you; as individuals, businesses and C-Corporations.
The House of Representatives and Senate have both passed the “Tax Cuts and Jobs Act.” The compromise bill includes agreements on corporate and individual tax rates, the treatment of pass-through income, the estate tax, and itemized deductions such as those for mortgage interest and state and local taxes, among other areas. President Trump is expected to sign this legislation into law this week.
President Trump signed the TCJA into law on Friday, December 22, 2017.Cautionary notes:
The specific applications and appropriateness of these general comments will vary, based on individual circumstances. You should consult your tax adviser before undertaking any of the tactics discussed below.
On December 26, the IRS issued guidance on withholding, in light of changes to withholding tables and systems needed to conform with the Tax Cuts and Jobs Act, effective January 1, 2018. Please see the language from the IRS Statement below.
The part of the new Tax Cuts and Jobs Act (“TCJA”) about which we at HM&M have received the most inquiries is the new “pass-through” deduction provided by Section 199A of the Internal Revenue Code. Section 199A is in effect for years from 2018 through 2025.
Question:Are Business-Related Meals and Entertainment Still Deductible?
Answer: Fifty percent of all costs of reasonable business-related meals are deductible. Some exceptions exist. Except for limited situations and categories of expenses, entertainment costs are not deductible.
Here are the presentation slides we have put together on the major changes from the Tax Cuts and Jobs Act and how these changes are affecting individuals, businesses, C-Corporations, and a variety of other topics.
Here are the presentation slides we have put together on the 199A – Passthroughs Tax Deduction.
In the past (as recently as 2017), particularly in Texas, some people regularly paid two years of property taxes (“bunching” the two years’ worth of deductions) in Year One and itemized their personal deductions in Year One.
Individuals may distribute up to $100,000 tax-free from their IRAs to certain charitable organizations.
Tax Cuts and Jobs Act – Overview
§199A Pass-through Deduction
March 16, 2018
Vance Maultsby, CPA, discusses the new Entertainment & Meals expense rules under the Tax Cuts and Jobs Act.
February 19, 2018
Carrie Reese, CPA discusses Changes in Itemized Deductions due to the Tax Cuts and Jobs Act
January 18, 2018
Daryl L. Leick, CPA, discusses Excess Business Losses, a new provision from the Tax Cuts and Jobs Act of 2017.