President signed legislation – Last moves to consider before 12/31/17

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 [...]

By |December 22nd, 2017|Tax|

Actions to consider before 12/31/17 due to Tax Reform Proposals

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 [...]

By |December 15th, 2017|Tax|

Pass-through Income Tax Reform Proposals

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 [...]

By |December 14th, 2017|Tax|

Corporate Provisions in Tax Reform Proposals

  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 [...]

By |December 14th, 2017|Tax|

Interest Deductions in Tax Reform Proposals

Interest Deductions in Tax Reform Proposals By Brent D. McLaughlin and Megan L. Austin The House and Senate tax reform bills both would make significant changes to deductions.  Here is how the bills address deductions for mortgage interest, student loan interest, business interest, and taxes.   Itemized deduction for mortgage interest Currently, taxpayers may deduct the interest paid on acquisition indebtedness up to $1.1 million in total -   $1 million for the purchase of the residence, and $100,000 of home [...]

By |December 14th, 2017|Tax|

Julie Welch Provides Insights in the November 22, 2017 The Kansas City Star

Meara Welch Browne's Tax Partner, Julie Welch, recently contributed to an article in The Kansas City Star - "Personal Finance" section article titled "New H&R Block CEO Jeff Jones to hold first session with shareholders amid tax reform" by Mark Davis. The article discusses the upcoming quarterly conference call where H&R Block executives “will be previewing some components of the upcoming tax season”.  The article also mention's "extensive changes in tax rates, deductions and other key provisions of the tax code" that Congress [...]

By |November 27th, 2017|Tax|

Julie Welch Quoted in the November 3, 2017 The New York Times

Meara Welch Browne's Tax Partner, Julie Welch, was quoted today in The New York Times - "Your Money" section article titled "Why It's Too Soon to Predict What the Tax Changes Will Mean for You" by Ron Lieber. The article discusses the new House tax bill that was just revealed and cautions readers not to get too caught up in its current form. It also reviews some of the main items addressed by the bill and generally how they may affect [...]

By |November 3rd, 2017|Tax|

Tax Cut Bill Just Released

The House Ways & Means Committee "Tax Cuts & Jobs Act" was just released this morning.  The bill would lower the individual tax rates for low and middle income people to 0%, 12%, 25%, and 35% and retain the 39.6% rate for high-income (over $1 million) people; lower the corporate rate to 20%; and lower the small business pass through entity rate on a portion of the income to 25%. The bill would increase (almost double) the standard deduction to $12,200 [...]

By |November 2nd, 2017|Tax|

Controversial Proposed Section 2704 Valuation Rules to be Withdrawn

The Treasury Department announced Wednesday that it plans to withdraw proposed estate and gift tax regulations under Section 2704 in their entirety.  In the Treasury’s own words, the proposed regulations “would have hurt family-owned and operated businesses by limiting valuation discounts.” The goal of the proposed regulations was to counteract changes in state statutes and developments in case law that have eroded Section 2704’s applicability and facilitated the use of family-controlled entities to generate artificial valuation discounts, such as for [...]

By |October 5th, 2017|Tax|

Framework Announced . . . Details to Follow . . .

President Trump announced the long-awaited framework that would cut individual and corporate tax rates and eliminate many exemptions and deductions.  The "Big Six" (Speaker of the House Paul Ryan, House Ways and Means Committee Chair Kevin Brady, Senate Finance Committee Chair Orin Hatch, Senate Majority Leader Mitch McConnell, Treasury Secretary Steven Mnuchin, and National Economic Council Director Gary Bohn) negotiated the "Unified Framework for Fixing Our Broken Tax Code" which would be the biggest tax overhaul since the 1980's. The [...]

By |September 28th, 2017|Tax|

Tax Changes are Coming

Tax Changes are Coming By Julie Welch and Steve Browne This week President Trump and congressional Republicans are expected to release a framework for tax reform legislation.  Here is an article printed in Ingram's Magazine earlier this year about the tax changes coming. With a newly elected President, many are expecting major tax changes.  Looking through the Trump Tax Plan, it appears to mirror the Reagan tax cuts (the Economic Recovery Tax Act of 1981 and the Tax Reform Act [...]

By |September 25th, 2017|Tax|

KC Harvey Relief Effort

KC Harvey Relief Effort Dear Friends: Our prayers go out to those affected by Hurricane Harvey and its catastrophic flooding along the Gulf coast. Amid that terrible devastation, we should all pause and be grateful for our own good fortune. But as we do so, the sheer magnitude of this disaster and the suffering it is causing should kindle in all of us a desire to reach out and help those in such desperate need. And the need is great; [...]

By |September 1st, 2017|General|