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Taxpayers can Visit IRS.gov for Resources to Help Understand Tax Reform

Taxpayers who have questions about the Tax Cuts and Jobs Act have several resources that will help answer questions. The legislation, passed in December 2017, changes many areas of the tax law. Here are some of the resources on IRS.gov that will help individual taxpayers, businesses and the tax community: ..

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New Rules and Limitations for Depreciation and Expensing

The Tax Cuts and Jobs Act changed some laws regarding depreciation deductions.  ..

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When is entertainment an expense and are client meals deductible after the Tax Cuts and Jobs Act?

The tax rules related to meals and entertainment have changed, and left some uncertainty in the gap between the old law and the new.  Before the Tax Cuts and Jobs Act, the deduction allowed for entertainment expenses was limited to 50 percent of the amount otherwise deductible. Under the TCJA, the deduction for entertainment is completely repealed. Prior to the act, a 50 percent deduction was allowed for expenses related to business meals that were not lavish or extravagant. The confusion results from the issue of whether such business meals fall under the entertainment umbrella, or are still deductible. ..

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Inflation Adjustments Under Recently Enacted Tax Law

The Internal Revenue Service has updated the tax year 2018 annual inflation adjustments to reflect changes from the Tax Cuts and Jobs Act (TCJA). The tax year 2018 adjustments are generally used on tax returns filed in 2019.  ..

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Tax Planning Tips for Cutting 2017 Income Taxes in Light of Tax Reform

The conventional tax wisdom at the end of the year is to pull in deductions to offset current tax liability and push off income to postpone tax payment. This takes on added significance in 2017 with enactment of the new tax reform law, the Tax Cuts and Jobs Act (TCJA). Because the bill, just signed into law by President Trump on Friday, December 22, cuts individual tax rates and eliminates or scales back most itemized deductions in 2018, many taxpayers have even more tax incentive to follow the traditional pull-and-push strategy.  But the ball is about to drop on another year, so don’t delay. Here are some ideas to lower taxes for 2017 in the wake of the new tax law. ..

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What the Tax Reform Bill Means for Individuals

H.R. 1, known as the Tax Cuts and Jobs Act, which both houses of Congress passed on Dec. 20, contains a large number of provisions that affect individual taxpayers. However, to keep the cost of the bill within Senate budget rules, all of the changes affecting individuals expire after 2025. At that time, if no future Congress acts to extend H.R. 1’s provision, the individual tax provisions would sunset, and the tax law would revert to its current state.  Here is a look at many of the provisions in the bill affecting individuals. ..

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20 Great Pieces of Advice

Accounting Today recently asked over a hundred leaders in the tax and accounting profession to share the best piece of advice they’d ever received in their lives — here’s a sampling of some of the favorites: ..

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An Early Look at 2017 Year-End Planning

Year-end planning this year faces an almost perfect storm of uncertainties. Leading the pack is tax reform, with basic questions remaining on what “reform” will cover and when it will become effective ... if at all. Also deserving careful considered is the usual flow of developments released during the course of this past year by the IRS and the courts, as well as additional changes that will take place between now and year-end. On top of all that, of course, is consideration of each individual taxpayer’s circumstances, which can also vary from year to year. ..

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How to Avoid Costly Tax Traps with Inherited IRAs

Here’s what you need to know about the accounts Gen Xers and Millennials stand to inherit from parents and grandparents. Over the next few decades, the Gen X and Millennial generations will be the recipients of one of the greatest wealth transfers in history. A portion of that will be in the form of IRAs from their parents, grandparents, and other relatives.  An inherited individual retirement account (IRA) can be a tremendous boon to the beneficiary.  Depending on the relationship between the decedent and the beneficiary, an inherited IRA may come as a complete surprise to the beneficiary.  Without proper planning, federal and state taxes can take a sizable bite out of the proceeds. The IRS has special rules that must be followed. ..

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