One of the best treats in life is to be able to learn from the challenges of others. For private companies implementing Topic 606, Revenue from Contracts with Customers, 2018 is providing just this opportunity. Most public business entities (PBEs) adopted Topic 606 on January 1, 2018. This represented the culmination of, for many PBEs, […]
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Home Equity Loan Interest Could Still be Deductible
The Service recently responded to widespread confusion surrounding changes made through the Tax Cuts and Jobs Act by announcing that taxpayers can often still deduct interest on a home equity loan, home equity line of credit or second mortgage, without regard to the label placed on the loan. Tax reform imposed a lower limit of […]
IRS Recalculates HSA Family Coverage Deduction
Last week, IRS recalculated the previously released 2018 figures for Health Saving Account (HSA) family coverage deductions. Under the Tax Cuts and Jobs Act, inflation adjusted figures previously utilizing the Consumer Price Index for All Urban Consumers (CPI-U) would be indexed under the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). Though of little […]
Bipartisan Budget Act of 2018 Provides Miscellaneous Tax Related Provisions
On February 9, 2018, Congress passed and President Trump signed into law the Bipartisan Budget Act of 2018. The main purpose of the legislation was to fund the government through March 23, 2018, but it also provided a few relevant retroactive tax changes we should note and be aware of for tax year 2017. The […]
Avoiding Costly Mistakes Regarding Choice of Entity Post-Tax Reform
Choice of entity is undoubtedly a discussion for practitioners currently meeting with clients for tax return preparation. Clients are confused as to which structure–C corporation or S corporation–is best suited for their entity after tax reform. The Tax Cuts and Jobs Act lowered the tax rate for C corps to 21%. Moreover, the new §199A […]
The Service Business Disadvantage of the New Section 199A
The tax reform law includes a new Section 199A which creates a deduction for Qualified Business Income (QBI). For tax years 2018 through 2025, an individual Taxpayer may deduct 20% of QBI from a partnership, S corporation, or sole proprietorship. QBI is the net amount of qualified items of income, gain, deduction, and loss with […]
Surgent’s New Tax Reform Webinar
With the final Tax Cuts and Jobs Act now signed by President Trump—and many clients already asking their accountants what they should do this year in light of the bill’s provisions—Surgent’s internal team of tax experts has prepared an all-new professional education course, Critical Tax Reform Update for CPAs: The Tax Cuts and Jobs Act (TACT). This […]
Highlights of the Compromise Tax Reform Package
Republican lawmakers released their conference committee report for The Tax Cuts and Jobs Act on December 15, 2017. This compromise tax reform package passed in both the House and Senate the week of December 18th. President Trump’s signature has heralded in the most substantive changes to the tax code in over 30 years. The basic […]
Tips for 2017 Year-End Planning Amid Our Uncertain Environment
With the House and Senate bills being reconciled in an effort to pass a tax reform law, it is incredibly difficult for a professional to competently advise an individual on year-end planning. To illustrate this point, the IRS itself has punted on usually already issued withholding guidance as it awaits the finalized legislation. Here, however, […]
Senate Passes Own Version of Tax Cuts and Jobs Act
The Senate passed its version of the Tax Cuts and Jobs Act at approximately 2 a.m. on the morning of December 2, 2017, almost entirely along party lines. The final vote was 51-49 with only Senator Bob Corker (Republican, Tenn.) defecting. The House is scheduled to vote December 4, 2017 regarding conferencing with the Senate […]