Benjamin Franklin said that two things are inevitable in life: Death and taxes. And the nice thing about death is that it should come as slow as the caravan.
2018. It started out when Donald Trump and Kim Jong-un had a nuclear meltdown over who had the bigger nuclear button. Strangely enough, they started 2017, just calling each other names. Later on, President Trump declared to the political world how much he loved Kim Jong-un. Politics does make strange bedfellows.
Are Nicole Simpson’s murder and Jamal Khashoggi’s related? The Prince of Saudi Arabia has been accusing rogue killers of Jamal Khashoggi’s death. O.J. Simpson has been accusing rogue killers for his ex-wife’s death. O.J. may be heading for the Middle East.
One of the most admired people on the planet, Anthony Bourdain killed himself. It means, none of us are truly safe from our inner demons. Nor our outer ones.
Democrats were shocked when they found out that they can’t run all thirty candidates against President Trump.
After Brett Kavanaugh’s confirmation turned into a beer commercial, Nike decided to sponsor the next confirmation hearing.
Many Democratic atheists turned religious when Ruth Bader Ginsberg broke three ribs.
Positive side to climate change. 300 scientists wrote a report predicting staggering economic destruction to the United States. Another report basically predicted the end of life as we know it in twenty years. In reaction to these reports, the administration wants credit for solving the Social Security funding problem.
Zen and the Art of Tax Preparation. On December 22, 2017, the President signed H.R. 1 into law. It was passed by only Republican votes. It’s kind of a tax civil war. Maybe Ken Burns will do a documentary on this tax bill.
There are winners and users. By the time of the last election, no one was really talking about it. There are 115 new provisions. California didn’t conform to most of these provisions.
To make life easier, the 7 old brackets were reduced to 7 new brackets. The wealthiest clients had their brackets reduced from 39.6% to 37 per cent. The lowest went from ten to ten. Irony is not tax deductible.
You can now throw those useless dependents onto the streets. The $4150 deduction for each family member has been reduced to zero.
However, children 17-year-old and under are now worth $2,000 instead of $1,000. The income limitations went up to $400,000 in order to get the credit. Use to be $110,000. Rich people have children, too.
All miscellaneous deductions for employees are eliminated. Moving deductions are eliminated. Agents fees. Lawyers. Classes. However, if you are a corporation, sole proprietorship, partnership, the deductions magically appear. For many there is a deduction of 20% of any profit. The 20% starts to reduce when you have taxable income of over $157,500 as a single person or $315,000 as a married person. There are exceptions to these rules. Engineers and architects can make unlimited income and still get the 20% reduction. A lot of who gets this provision and who doesn’t get what has not been clarified by the tax bill.
Just when all help seemed lost, the standard deduction was raised. Married couples now have a standard deduction of $24,000 instead of $12,700. Single people now have a standard deduction of $12,000.
IRA deductions will be $6,000 in 2019. Up from $5,500.
529 plans can be used for both elementary and secondary education. Thank you, Betty Devos. You can take out up to $10,000 a year. It won’t save you enough to buy a 100 million dollar yacht.
Annual gift exclusion amount is now $15,000. It is better to die than to give. The estate exclusion amount is $11.18 million. In reality you can give away $11.18 million but too few of us do.
Small businesses can now expense up to $1,000,000 in equipment.
The deduction part for taxes was limited to $10,000. If adding property taxes, state and local taxes, car registration is over $10,000 then it’s limited to $10,000. This hurts citizens who live in high tax states and anyone registering a Rolls Royce.
New home acquisitions? The deduction is limited to loans of $750,000 rather than the previous $1,000,000.
Casualty losses are deductible only in a federally declared disaster. Some say that this tax bill is a federally declared disaster.
If you’re being driven crazy by politics, driving becomes a better deduction. Business miles goes from 53.5 cents a mile up from 54.5 cents. You can now take up to $18,000 the first year you buy a car.
Business meals are 50% deductible but going to a sporting event is not deductible. Tax bill writers remember the protests.
No deduction for union dues.
Corporate tax rates were slashed. Every corporation is taxed at a flat rate of 21%.
It is better tax-wise to be self-employed or have your own company. If you want to discuss this, please call.
2018. This is our 37th tax season. The people who work here are like superheroes who also work getting your tax returns filed properly. All superheroes have a second job. Ours work here.
Dom Gelband is our office manager and also Dom, “The Domineering. Legend” has it that she was promised the job when she was five years old in Thailand and she has defeated anyone that gets in her way. All great heroes have a great origination story.
Patty, a.k.a. The Juggler. She can balance client questions, e-filing, checking numbers and telling a great joke all at the same time.
Nataliya a.k.a. Corporate Flash. About to solve payroll and computer problems faster than the speed of light.
Vikey a.k.a. The Tax Charmer. No matter how much chaos she is able to bring a tsunami of calmness.
Grace a.k.a Amazing Grace. Filled with humor and speed. Nothing phases her as she handles the phones and our clients. How sweet the sound.