Meara Welch Browne’s Tax Partner, Julie Welch, along with Ed Slott, president of Ed Slott & Company, were interviewed on CNBC's Squawk Alley about the tax benefits of selling stocks before the end of the year. You can view CNBC's interview at the following link: https://www.cnbc.com/video/2018/12/27/tax-experts-nows-the-time-to-sell-stocks-claim-losses.html
Today the IRS issued proposed regulations and a news release providing guidance to individuals who are considering making large gifts to take advantage of the increased gift/estate tax exclusion levels that are effective for 2018 through 2025. The current exclusion amount is now $11,800,000 but is scheduled to revert to pre-2018 levels after 2025 ($5,000,000 as adjusted for inflation). The concern was that an estate tax after 2025 could apply to gifts made during 2018 through 2025 (known as Clawback). [...]
Meara Welch Browne’s Tax Partner, Julie Welch, was quoted Thursday in USA Today “Business” section article titled “Tax Planning: 6 ways to lower the amount you owe” by Robert Powell. The article discusses ways to cut your tax bill before year end. You can read Julie's quote and the entire article on USA Today website at the following link: https://www.usatoday.com/story/money/columnist/2018/11/07/tax-planning-6-ways-lower-amount-you-owe-government/1648902002/
Tax benefits from medical expenses are available by taking an itemized deduction for medical expenses, using a Flexible Spending Account (FSA) through an employer, or using a Health Savings Account (HSA) for those who have qualified high deductible health insurance. For the 2018 itemized deduction, only medical expenses more than 7.5% of your adjusted gross income are deductible. That is set to increase for 2019 to 10% of adjusted gross income unless new legislation is enacted. Sarah O’Brien, a writer [...]
Missouri Governor Mike Parson signed a tax bill into law that primarily takes effect in 2019. Here are the highlights of the changes: TAX CUT The top individual rate drops from 5.9% to 5.4% beginning in 2019 The top rate can drop by 0.1% for each year that Missouri meets stated revenue targets – eventually dropping the maximum rate down to 5.1% TAX INCREASE The deduction for Federal income taxes (currently a maximum of $5,000 single and $10,000 married) [...]
The IRS just announced revised inflation-adjusted amounts for 2018. As a result of the Tax Cuts and Jobs Act that was enacted December 22, 2107, the IRS had to modify some inflation-adjusted amounts it announced in late 2017. The new law requires the inflation adjustments to be based on the chained Consumer Price Index for all Urban consumers. The basic exclusion amount for a decedent dying in 2018 is $11,180,000.
Meara Welch Browne’s Tax Partner, Julie Welch, was quoted Sunday in The New York Times – “Business” section article titled “Dealing With the Changes in the Tax Code” by Jan M. Rosen. The article discusses the new tax law and its impact on taxpayers. It also maps out tips from tax professionals on things to be aware of when it comes to your 2018 tax return. Julie’s quote can be found in the section of the article “To plan for [...]
The 40th Annual Recent Developments in Federal Taxes covering many aspects of the new tax law is Saturday, January 27, 2018. Julie Welch is moderator of the program and will also give the Individual Income Tax Update. Here is a link to the brochure for more information.
Today the President signed the Tax Cuts and Jobs Act into law – the most sweeping tax reform in three decades. Most of the changes will go into effect next year (2018) so here are some last minute moves you should consider in the last few days of 2017. INDIVIDUALS Due to the elimination of many itemized deductions beginning in 2018, if one will no longer itemize deductions in 2018, consider paying as many itemized deductions in 2017 as possible [...]
Actions to consider before 12/31/17 due to Tax Reform Proposals By Julie A. Welch, CPA, PFP, CFP The Senate narrowly passed its version of the most sweeping tax reform in three decades, “Tax Cuts & Jobs Act,” early Saturday morning December 2, 2017 BY a vote of 51-49. The House had passed its version in mid-November. So now the bills move to “reconciliation” to work out the differences and come up with a bill on which both chambers can agree [...]
Pass-through income tax reform proposals By Cara L. Smith, CPA, CFP The House and Senate bills both provide tax benefits to owners of pass-through businesses (those taxed as S Corporations or Partnerships), but they use different methods to determine the benefit. The House bill would impose a 25% maximum tax rate on pass-through business income. Lower rates would be available for those pass-through business owners earning less than $225,000 ($112,500 for single filers). Wage income would still be subject [...]
Corporate provisions in tax reform proposals by Luke D. Guettermann, CPA The United States House Representative and Senate have both pass separate versions of a tax reform bill. Below is a chart that detail the proposals and the current tax law. Corporate and Business Breakdown of Tax Bills Issue House Bill Senate Bill Current Law Corporate Tax Rate Beginning in 2018 a flat 20% tax rate and a personal service flat 25% tax rate. Beginning in [...]