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

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

 

Welcome to Lynch Marini Accounting & Tax Updates

Welcome to the accounting and tax update section of our website. We will post important updates here, to keep you informed of important changes impacting your accounting methods, tax changes, tax planning, and clarifications and rulings by the Internal Revenue Service.

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As always, if you have any questions, please reach out to us at any time. We are here to help you.  Please contact Tony Marini or Rob Lynch for specific questions!

Telephone (781) 871-5850