Entries by Kristen

New Georgia tax legislation will benefit all Georgia taxpayers

  Governor Nathan Deal signed major income tax changes in response to the federal Tax Cuts and Job Act of 2017 (“TCJA”), on March 2, 2018. The major components of the legislation are as follows: The top individual and business tax rates have been reduced to a maximum rate of 5.75% The standard deduction for […]

Hiring new employees with the 2018 Tax Act

When you hire a new employee, they must fill out a W-4 form telling you, their employer, how they want their federal withholdings. Single, married. Number of withholding allowances. The Internal Revenue Service has issued a notice providing guidance for employees and employers on what to do with the Form W-4 under the new Tax […]

2017 Tax Reform: IRS clarifies interest on home equity loans

  2017 Tax Reform: IRS clarifies interest on home equity loans. Often still deductible In an Information Release, IRS has announced that in many cases, taxpayers can continue to deduct interest paid on home equity loans under the recently enacted Tax Cuts and Jobs Act (PL 115-97, 12/22/2017). Background. Taxpayers may deduct interest on mortgage […]

Pros and Cons of the New Tax Law on Real Estate Owners

There are certain provisions of the new tax law that offer expanded tax cuts while others eliminate existing deductions. One big plus is bonus depreciation. Under prior law, there was a 50 percent bonus depreciation for property placed in service in 2017, 40 percent for 2018, and 30 percent for 2019. Qualified property has to […]

Tax Act Changes Deductibility of Mortgage Interest

Here are the changes in the rules for deducting qualified residential interest, i.e., interest on your home mortgage, under the Tax Cuts and Jobs Act (the Act).   Under the pre-Act rules, you could deduct interest on up to a total of $1 million of mortgage debt used to acquire your principal residence and a […]

Will the loss of the entertainment deduction affect your business?

Businesses—especially smaller firms—may scale back on treating clients to major league baseball games, golf outings and the like after Congress and President Donald Trump ended a tax break for such entertainment. The tax overhaul that Trump signed Dec. 22 eliminated a 50 percent deduction for business-related expenses for “entertainment, amusement or recreation.” Suddenly, luxury boxes […]

Taking advantage of the new tax law to reduce taxes

  The new tax law will affect everybody. Many individuals and companies will have opportunities to make planning decisions that could potentially reduce taxes. Here’s an example: For instance, let’s say you have an S Corp that has $500,000 of net income before any compensation to you, the 100% owner. Before the new tax act […]