The recent tax reform destroyed what was a win-win tax benefit for the employer and the employee. Transportation fringe benefits came into being in 1992 under the Energy Policy of 1992 (Pub. Law. 102-486). One difficulty was that the benefits expired often and worked their way into the group of tax provisions called extenders. No…
Miscellaneous
Tax Reform Attacks Home Mortgage Interest Deductions
The recent tax reform contains two big changes to how much you can deduct in mortgage interest for tax years 2018 through 2025: During this seven-year period, you may not deduct any interest on prior or current home equity debt, with certain exceptions. Also during this seven-year period, the maximum amount you may treat as…
Tax Reform Puts Screws to Hobbies
The tax law has mistreated hobbies 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. Under both prior law and the new law after the recent tax…
Chart 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 below shows you how the Tax Cuts and Jobs Act treats 12 meal and/or entertainment events. 100% Deductible for 2018 50% Deductible 0% Deductible Amount Deductible for Tax Year 2018 Description 100%…
Preserve the Deduction with an S Corporation
Will your business operation create the 20 percent tax deduction for you? If not, and if that is due to too much income and a lack of (a) wages and/or (b) depreciable property, a switch to the S corporation as your choice of business entity may produce the tax savings you are looking for.
Claim a Tax Credit for Sending Your Child to Camp
You may be able to claim the child and dependent care credit if you pay expenses for the care of your under-age-13 child or another qualifying person to enable you (and your spouse, if filing a joint return) to work or look for work. The tax credit is a percentage of the work-related expenses you…