The new tax law will change divorce tactics

When couples divorce, financial negotiations often involve alimony. The tax rules regarding alimony were dramatically changed by the Tax Cuts and Jobs Act (TCJA) of 2017, but existing agreements have been grandfathered. In addition, the old rules remain in effect for divorce and separation agreements executed during 2018. Next year, the rules will change, and…

No tax deductions for business entertaining

The good news is that the TCJA of 2017 lowered corporate tax rates from a graduated schedule that reached 35% to a 21% flat rate. The bad news? Many business expenses are no longer tax deductible. That list includes all outlays that might be considered entertainment or recreation. As of 2018, tickets to sports events…

Important Disaster Tax Relief Information

On September 29, 2017, H.R. 3823, the “Disaster Tax Relief and Airport and Airway Extension Act of 2017” was signed into law.  The bill provides tax relief to individuals and businesses affected by Hurricanes Harvey, Irma, and Maria. Business tax relief includes the following: Employee Retention Credit:  Tax credit of 40% of qualified wages paid…

Tax Court Approves 100% Business Meal Deduction

Many business owners, self-employed individuals, and other taxpayers are aware that business meals and entertainment expenses are only 50% deductible. You might treat a key client to a restaurant meal and spend $100. Even if this meal has a definite business purpose (you wind up with an important contract), only $50 will be tax deductible.…