New Legislation

I have been doing tax work for almost 40 years. During that time I can think of over 12 significant tax bills that I could endorse, even in one case where tax rates were increased. This bill I cannot. I am happy that this bill will create more billable time for my firm but I believe the benefits are over blown. Our job is to save you money not cost you money and this bill was a gift to lawyers and accountants. The following analysis will hopefully provide some understanding of the more salient points for you but also I want you to keep in mind the complexity that this bill is going to cause. More than ever please call

New Section 199A -Qualified Business Income

Dear Client: Recent tax legislation added a new tax deduction for business owners. It permits individuals, estates, and trusts to deduct up to 20% of their “qualified business income.” You may have heard a lot of talk in the news about a new deduction for “pass-through” income, but it’s actually available for qualified business income from a sole proprietorship (including a farm), as well as from pass-through entities such as partnerships, LLCs, and S corporations. For taxpayers in the new 37% tax bracket (down from 39.6% in 2017), such income may be taxed at an effective top marginal rate of 29.6%. Although the new deduction opens the door for planning opportunities for you and your business, the rules are complex.

2017 Tax Reform Letter

Dear client: I am writing to inform you about the severe new limits placed on individuals’ itemized deductions of casualty and theft losses that were made by the Tax Cuts and Jobs Act, effective beginning in 2018. Before the Tax Cuts and Jobs Act, individuals could claim as itemized deductions certain personal casualty losses, not compensated by insurance or otherwise, including losses arising from fire, storm, shipwreck, or other casualty, or from theft. There were two limitations to qualify for a deduction: (1) a loss had to exceed $100, and (2) aggregate losses could be deducted only to the extent they exceeded 10% of adjusted gross income. However, for tax years 2018 through 2025, the personal casualty and theft loss