November 2018 Tax Planning

As most people know, 2018 had tremendous tax changes. Since January, our team has been conducting detailed analysis and discussing strategies, as to how business owners can best deal with the changes. For the Small Business Owner, the tax law has been changed in an attempt to provide the same tax rate as corporations.

However, great care and attention to detail must be exercised to maximize these benefits. Too much or too little salary, over expensing of equipment purchases, and implementation of retirement plans must all be reviewed to ensure that tax benefits are optimized. Important questions must be asked,  such as:

  • Should you incur those capital gains this year?
  • How will capital gains affect the overall tax rate?
  • How does your spouse’s income affecting this computation?

Some business owners may have heard that the recent changed simplified tax returns and planning. Our team believes many of these changes actually make it more complex.

We welcome a discussion relating to your specific business situation.  Please contact Tony Marini or Rob Lynch for questions or assistance.

Rob Lynch 781-871-5850
Tony Marini 508-650-0018

August 2018 Tax News

The IRS issued additional guidance to a very significant deduction for flow through entities, small business and self-employed. The significant developments are:

Contract or employee – Now more important than ever and we think this will be looked at if examined.
Rental Activities – Should that get the deduction? – Still not totally clear.
Value of property – Make sure your records are clear as to what is depreciated and not depreciated since this a part of the computation.
Aggregation Rules – Should all your entities be aggregated or not?
Specified Service Trade or Business – Unless taxable income thresholds are met, certain business are not eligible.

This 182 page clarification guidance from the IRS continues is complex and nuanced. We will continue to focus on this clarification and other related issues for all of our clients.

Please send us a note or give us a call to discuss these and any other questions or issues you may have.

Rob Lynch 781-871-5850
Tony Marini 580 650-0018

July 2018 Accounting News

Certain non-profits are required to undergo a review or an audit which results in formal financial statements. For the year ending December 31, 2018, the reporting requirements are changing. The presentation of Temporary Restrictions and Permanent Restrictions along with Board Designated will be different. New footnote disclosures are required.

It is important to ensure that your Non-profit has the correct and accurate descriptions of your donation and supported with thank you letters. We continue to recommend that all restriction of funds be fully detailed and if appropriate, approved by your Board.

Please send us a note or call us to discuss these and any other questions or issues you may have.

Rob Lynch 781-871-5850
Tony Marini 580 650-0018

2018 Tax Law Changes: Deductions, Limitations…

As you have heard, there have been significant tax law changes for 2018.  We have been carefully studying the changes, and know that it will affect all of our clients.

Here are some of our thoughts on the most significant changes:

  • Your deductions will decrease – this is caused by a limitation on the state and local taxes that can be deducted, and because there are no miscellaneous deductions (investment costs, unreimbursed business expenses and tax preparation fees).
  • Your standard deduction will increase which will result fewer people itemizing their deductions.
  • If you bought a house or refinanced your mortgage after December 2017, the mortgage limitations changed to a maximum of 750,000, plus 100,000 if you have a line of credit. If you have or own a business, the rates may be less but there are some significant limitations which can impact your returns.
  • If you are in real estate, there are deductions now available to you that may reduce your taxes.
  • The Alternative Minimum Taxes changed – this will result in less people being subject to this extra tax.
  • People which have had a reduced withholding, may result in additional taxes owed at the end of the year.

There are many more changes that may affect you.

We are here to answer your questions.  Please contact Tony Marini or Rob Lynch for specific questions!

Telephone (781) 871-5850