By month: March 2018

Tax Reform Puts Screws to Hobbies

Hobbies have been mistreated by the tax law for a long time. But the most recent tax reform brings the grim reaper to the party and it’s not pleasant. This means you need to focus on making your activity a business and not a hobby.

Tax Reform Does Much to Help Your Rental Real Estate

The recent tax reform, known as the Tax Cuts and Jobs Act (TCJA), added some good benefits to your real estate rentals, both commercial rentals and residential rentals. Notably, your qualified business income from your real estate rentals creates a possible 20 percent tax deduction with no effort on your part. And if you want less taxable income, the TCJA gives you enhanced bonus depreciation and new avenues for Section 179 expensing.

Did Tax Reform Goof When Disallowing Deductions for Client Meals?

We, you, and just about everyone else have been looking for a ray of sunshine that would allow tax deductions for business meals with clients and prospects. In this article, you learn that lawmakers may have intended to grant deductions for business meals with clients and prospects in spite of how they put together the Tax Cuts and Jobs Act.

Tax Reform Punishes W-2 Employees—Get Even!

The recent tax reform created both winners and losers. One big loser is the W-2 employee who incurs out-of-pocket business expenses to earn his or her W-2 income. Tax reform simplified those W-2 employee business expense deductions by simply making them not tax deductible.

Tax Reform Attacks Home Mortgage Interest Deductions

The home mortgage interest deduction rules did not fare well in the recent tax reform. First, a chunk of your home equity mortgage interest is no longer deductible. Second, you now face a new lower ceiling on mortgages that can qualify for the home mortgage interest deduction.

New Court-Approved Way to Defeat IRS Penalties

You hate IRS penalties, right? Everyone does! There are a lot of strategies you can use to potentially defeat an IRS penalty. Thanks to the courts, though, you now have a brand-new way to beat an IRS penalty.

Helicopter View of Meals and Entertainment After Tax Reform

Tax reform has had a significant impact on the tax deductions you can now claim for business entertainment and meals. The chart in this article shows you how the Tax Cuts and Jobs Act treats 12 meal and/or entertainment events.

New Section 199A Tax Reform Calculator for Your Use

The new 20 percent tax deduction under new tax code Section 199A has many nuances based on your type of business, taxable income, qualified business income, wages, and depreciable property. Here you have an easy-to-use Section 199A calculator that takes away the pains of manually computing your possible benefits.

Tax Reform Imposes a Penalty Tax on Transportation Fringe Benefits

The old saying that “no good deed goes unpunished” could certainly apply to the transportation fringe benefits that lawmakers penalized with the recent tax reform.


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