TAX NEWS UPDATES

Itemized Tax Deductions Post Tax Reform 2018-2025

With Standard Deductions doubling after the Tax Reform it became harder to benefit from the Itemized Deductions. For, Itemized Deductions only start to benefit the taxpayers tax return when they exceed the Standard Deduction. Under the previous law that threshold was $6,500 for single filers and $12,000 for married filing joint filers. After the Tax Reform those amounts increased to $12,000 for single filers and $24,000 for married filing joint filers. Continue reading “Itemized Tax Deductions Post Tax Reform 2018-2025”

TAX REFORM ON 1031 | CRYPTOCURRENCY AND REAL ESTATE INVESTORS

The major change to Section 1031 is the complete repeal of personal property exchanges. The Code section now refers exclusively to real estate assets, and has been retitled, “Exchange of real property held for productive use or investment.” Continue reading “TAX REFORM ON 1031 | CRYPTOCURRENCY AND REAL ESTATE INVESTORS”

2018 Quarterly Estimated Tax Due Dates

For estimated tax purposes, the year is divided into four payment periods. Each period has a specific payment due date. If you don’t pay enough tax by the due date of each payment period, you may be charged a penalty even if you’re due a refund when you file your income tax return at the end of the year.

If you mail your estimated tax payment and the date of the U.S. postmark is on or before the due date, the IRS will generally consider the payment to be on time. If you use IRS Direct Pay, you can make payments up to 8 p.m. Eastern time on the due date. If you use a credit or a debit card, you can make payments up to midnight on the due date.

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Tax Scams / IRS Consumer Alerts

Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use the regular mail, telephone, or email to set up individuals, businesses, payroll and tax professionals.

The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam.

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Summary of Tax Provisions in Bipartisan Budget Act of 2018

DIVISION B – DISASTER RELIEF
SUBDIVISION 2 – TAX RELIEF AND MEDICAID CHANGES RELATING TO
CERTAIN DISASTERS

TITLE I – CALIFORNIA FIRES

  • Sec. 101 – Sec. 104. California Fire Provisions. Provides disaster tax relief benefits with respect to individuals and businesses affected by California wildfires. These benefits are special rules allowing access to retirement funds, temporary suspension of limits on deductions for charitable contributions, allowance of deductions for personal casualty disaster losses, special rules for measurement of earned income for purposes of qualification for tax credits, and a special credit for employee retention.

Continue reading “Summary of Tax Provisions in Bipartisan Budget Act of 2018”