Starting in 2019, wage earners will pay (and employers will match) the 6.2% social security tax on the first $132,900, an increase of $4,500 over the 2018 wage base. The good news is that Social Security recipients will receive 2.8% more in benefits in 2019 over the 2018 amounts. Those who turn 66 in 2019 […]

The Tax Cuts and Jobs Act enacted in late 2017 was more than 500 pages long, with detailed changes affecting everything from the taxation of trusts to the treatment of life insurance policy acquisition costs. But for most taxpayers, the biggest changes have to do with the new income tax rates, a higher standard deduction, […]

There can be a lot of confusion surrounding a cancellation of debt event. Many taxpayers don’t even realize that one has occurred much less that it is taxable. This article discusses when a cancellation of debt event has occurred and what are the tax ramifications of debt cancellation in different situations.

Upon close inspection, you will notice a familiar theme throughout many of these cases. If you can’t substantiate a deduction, you lose it!   Alimony and separate maintenance payments Not a divorce or separation agreement: Taxpayer and ex-spouse signed an agreement just between them to modify their divorce agreement. The Tax Court concluded that the […]

The IRS has provided information to taxpayers about changes in the use of standard mileage rates and increased depreciation limits for passenger automobiles because of the Tax Cuts and Jobs Act. 

The new tax law nearly doubles the standard deduction for taxpayers. Standard deductions are increased to $24,000 for married filing joint filers, $12,000 for single filers, and $18,000 for head of household filers. All personal exemptions are eliminated.   Most job-related moving expenses are no longer deductible. Employee business expenses, brokerage and IRA fees, tax […]

DONATIONS: If you are 70 1/2 or older, consider making the donation from your IRA. You can transfer up to $100,000 annually from a traditional IRA directly to a charity. The charitable transfers count as all or part of your required minimum distributions, but unlike other IRA payouts, these direct gifts are not added to […]

THE GOOD. Minority interest in surgery center:The court allowed the taxpayer to report income earned through his minority interest in a surgery center as passive income not subject to the self-employment tax. Acting on his CPA‘s advice, the surgeon reported his income from the surgery center as passive income. This allowed the doctor to offset […]