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Adam’s Tax Accounting Service Blog

Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.

Families With College Students May Save Tax on Their 2017 Returns With One of These Breaks

Posted by on Feb 22, 2018 in Blog, General, Management, Tax Tips | 0 comments

Families With College Students May Save Tax on Their 2017 Returns With One of These Breaks

If you had a child in college (or graduate school) last year or were a student yourself, you may be eligible for some valuable tax breaks on your 2017 return. One of the breaks that had expired December 31, 2016, was just extended under the recently passed Bipartisan Budget Act of 2018: the tuition and fees deduction. A couple of tax credits are also available. Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed. Higher education breaks 101 While multiple...

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Small Business Owners: A SEP May Give You One Last 2017 Tax and Retirement Saving Opportunity

Posted by on Feb 19, 2018 in Blog, General, Management, Tax Tips | 0 comments

Small Business Owners: A SEP May Give You One Last 2017 Tax and Retirement Saving Opportunity

Are you a high-income small-business owner who doesn’t currently have a tax-advantaged retirement plan set up for yourself? A Simplified Employee Pension (SEP) may be just what you need, and now may be a great time to establish one. A SEP has high contribution limits and is simple to set up. Best of all, there’s still time to establish a SEP for 2017 and make contributions to it that you can deduct on your 2017 income tax return. 2018 deadlines for 2017 A SEP can be set up as late as the due date (including extensions) of your income tax...

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TCJA Temporarily Lowers Medical Expense Deduction Threshold

Posted by on Feb 15, 2018 in Blog, General, Management, Tax Tips | 0 comments

TCJA Temporarily Lowers Medical Expense Deduction Threshold

With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. But there’s a threshold for deducting medical expenses that may be hard to meet. However, the Tax Cuts and Jobs Act (TCJA) temporarily reduces this threshold. What expenses are eligible? Medical expenses may be deductible if they’re “qualified.” Qualified medical expenses involve the costs of diagnosis, cure, mitigation, treatment or prevention of disease, and the costs for treatments affecting any part or function of...

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Claiming Bonus Depreciation on your 2017 Tax Return May Be Particularly Beneficial

Posted by on Feb 12, 2018 in Blog, General, Management, Tax Tips | 0 comments

Claiming Bonus Depreciation on your 2017 Tax Return May Be Particularly Beneficial

With bonus depreciation, a business can recover the costs of depreciable property more quickly by claiming additional first-year depreciation for qualified assets. The Tax Cuts and Jobs Act (TCJA), signed into law in December, enhances bonus depreciation. Typically, taking this break is beneficial. But in certain situations, your business might save more tax in the long-term by skipping it. That said, claiming bonus depreciation on your 2017 tax return may be particularly beneficial. Pre- and post-TCJA Before TCJA, bonus depreciation was 50%....

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State and Local Sales Tax Deduction Remains, But Subject to a New Limit

Posted by on Feb 8, 2018 in Blog, General, Management, Tax Tips | 0 comments

State and Local Sales Tax Deduction Remains, But Subject to a New Limit

Individual taxpayers who itemize their deductions can deduct either state and local income taxes or state and local sales taxes. The ability to deduct state and local taxes — including income or sales taxes (as well as property taxes) had been on the tax reform chopping block, but it ultimately survived. However, for 2018 through 2025, the Tax Cuts and Jobs Act has imposed a new limit on the state and local tax deduction. Will you benefit from the sales tax deduction on your 2017 or 2018 tax return? Your 2017 return The sales tax deduction...

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2 Tax Credits Just for Small Businesses May Reduce Your 2017 and 2018 Tax Bills

Posted by on Feb 5, 2018 in Blog, General, Management, Tax Tips | 0 comments

2 Tax Credits Just for Small Businesses May Reduce Your 2017 and 2018 Tax Bills

Tax credits reduce tax liability dollar-for-dollar, potentially making them more valuable than deductions, which reduce only the amount of income subject to tax. Maximizing available credits is especially important now that the Tax Cuts and Jobs Act has reduced or eliminated some tax breaks for businesses. Two tax credits that are still available are especially for small businesses that provide certain employee benefits. 1. Credit for paying health care coverage premiums The Affordable Care Act (ACA) offers a credit to certain small employers...

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Can You Deduct Home Office Expenses?

Posted by on Feb 1, 2018 in Blog, General, Management, Tax Tips | 0 comments

Can You Deduct Home Office Expenses?

Working from home has become common in today’s world. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. Under the TCJA even fewer taxpayers will be eligible for a home office deduction in 2018. Changes under the TCJA For employees, home office expenses are a miscellaneous itemized deduction. For 2017, this means you’ll enjoy a tax benefit only if these expenses plus your other miscellaneous itemized expenses (such as unreimbursed work-related travel, certain professional fees and investment...

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Your 2017 Tax Return May Be Your Last Chance to Take the “Manufacturers’ Deduction”

Posted by on Jan 29, 2018 in Blog, General, Management, Tax Tips | 0 comments

Your 2017 Tax Return May Be Your Last Chance to Take the “Manufacturers’ Deduction”

While many provisions of the Tax Cuts and Jobs Act (TCJA) save businesses tax, the new law also reduces or eliminates some tax breaks for businesses. One of these breaks being eliminated is the Section 199 deduction, commonly referred to as the “manufacturers’ deduction.” When it’s available, this potentially valuable tax break can be claimed by many types of businesses beyond just manufacturing companies. Under the TCJA, 2017 is the last tax year non-corporate taxpayers can take the deduction (2018 for C corporation taxpayers). The basics...

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Meals, Entertainment and Transportation May Cost Businesses More Under the TCJA

Posted by on Jan 25, 2018 in Blog, General, Management, Tax Tips | 0 comments

Meals, Entertainment and Transportation May Cost Businesses More Under the TCJA

Along with tax rate reductions and a new deduction for pass-through qualified business income, the new tax law brings the reduction or elimination of tax deductions for certain business expenses. Two expense areas where the Tax Cuts and Jobs Act (TCJA) changes the rules — and not to businesses’ benefit — are meals/entertainment and transportation. In effect, the reduced tax benefits will mean these expenses are more costly to a business’s bottom line. Meals and entertainment Prior to the TCJA, taxpayers generally could deduct 50% of expenses...

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Personal Exemptions and Standard Deductions and Tax Credits, Oh My!

Posted by on Jan 25, 2018 in Blog, General, Management, Tax Tips | 0 comments

Personal Exemptions and Standard Deductions and Tax Credits, Oh My!

Under the Tax Cuts and Jobs Act (TCJA), individual income tax rates generally go down for 2018 through 2025. But that doesn’t necessarily mean your income tax liability will go down. The TCJA also makes a lot of changes to tax breaks for individuals, reducing or eliminating some while expanding others. The total impact of all of these changes is what will ultimately determine whether you see reduced taxes. One of the interrelated groups of changes affecting many taxpayers are those to personal exemptions, standard deductions, and the child...

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