Tax

Q: What is an Opportunity Zone? A: An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S.…

The Tax Cuts and Jobs Act created Qualified Opportunity Zones or QOZs. They are areas designated by the state and certified by the IRS as economically distressed communities. Qualified Opportunity Funds (or QOFs) are the investment vehicles designed to invest in eligible property located in a QOZ. Investors can defer tax on ANY prior gains…

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 can earn up to $46,920 prior to…

I have prepared this tax update to remind you of issues, most of which I have previously written about. Here are my ramblings on items I hope will interest you. Section 179 expensing. Small businesses can elect to immediately write-off up to $1 million of asset purchases. Bonus depreciation. As if the Section 179 expensing is…

Fall is in the air! The leaves are turning brilliant shades of red, orange and yellow. The mornings are cool and crisp. Well…, maybe not here in Florida, but elsewhere. You get the idea, its Fall! The perfect time to begin your harvest. “Harvest what?”, you ask. Your portfolio gains and losses of course! Below,…

There seems to be much confusion on the home office deduction. I don’t understand why when the IRS regulations are so well written and logical. LOL. In this article I will dispel the myths surrounding the home office deduction and suggest ways you can structure your specific circumstances to properly take this deduction. MYTH #1 The Simplified…

Section 179 Expensing – Who doesn’t want to deduct the full cost of their assets in the year of purchase? Almost no one. Section 179 expensing provides taxpayers with options. Who doesn’t like choices? The section 179 limitation has been increased to $1,000,000 for tax years beginning after 2017. Section 179 expensing has been expanded to…

Spoiler Alert! You will still pay income taxes in retirement! Up to 85% of your Social Security income is taxed. Usually 100% of your non-Roth IRA and 401(k) withdrawals are taxed. Ditto for your Pension income. Some, if not all, of your annuity withdrawals are subject to tax. Therefore, you should have appropriate withholding on your…

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 IRS modified Notice 2018-03, which provided the optional 2018 standard mileage rates for taxpayers to use in computing the deductible costs of operating…

The free-market economist Milton Friedman popularized the phrase “there is no such thing as a free lunch”, but he didn’t know taxes! Here are some tax-free income ideas for you to ponder: Investments Qualified Dividends and Long-term Capital Gains – There is no income tax on capital gains and qualified dividends for taxpayers in the 10%…