By month: February 2018

Yes, Tax Reform Did Kill Prospect and Client Meal Deductions

You asked us to elaborate on how tax reform did away with client and prospect business meals. It starts with the Tax Reform Act of 1986, when business meals were by law placed in the entertainment category. As you know, so-called business-friendly tax reform killed deductions for business entertainment and, along with it, client and prospect meals.

Tax Reform Cuts Business Tax Deductions for Charity Golf Outings

Imagine this. You pay $1,000 for your golf foursome to play golf in the annual charitable golf outing. You have been doing this for years, and you were always able to deduct the full $1,000. Now, because of the new tax reform, your deduction is $300. Disturbing?

Tax Reform Creates an Unfounded Desire for the C Corporation

Has tax reform created a need for you to switch your S corporation to a C corporation? You will find the answer here. Also, you will find it interesting to see how we make the comparison easy with the chart in this article.

Q&A: New 2018 Desktop Tax Rates for You

We had many compliments on our 2017 desktop reference and requests to create a 2018 desktop reference so that you can quickly look up the new (after tax reform) 2018 tax rates. You can download the new 2018 reference with the link that’s in this article.

Tax Reform Allows 100 Percent Deductions for Presentation Expenses

Tax reform did not destroy business meal presentation expenses. Read this article to see how business meal presentations work in the real world and also learn the basic rules that apply to them.

Tax Reform Allows Bigger, Faster Business Car Deductions

Finally, lawmakers did the right thing by increasing the luxury auto depreciation limits on business cars. The old luxury limits were unrealistic, punitive, unfair, and discriminatory against any car that cost more than about $15,000. The new limits don’t create parity in all respects, but they are a big improvement.

Q&A: How to Make IRS Penalties Go Away

Download your free resource guide titled Beating IRS Penalties, Your Guide to Reducing or Avoiding IRS Penalties.

Does Tax Reform Dislike Your Reputation or Skill?

Here’s a troubling thought. Did lawmakers put you in the out-of-favor tax group that denies you the 20 percent Section 199A deduction (a) because your business makes too much money and (b) it does so because of the reputation or skill of one or more of the business’ owners or employees?


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