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As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Year-end planning for 2018 takes place against the backdrop of a new tax law — the Tax Cuts and Jobs Act — that make major changes in the tax rules for individuals and businesses. For individuals, there are new, lower income tax rates, a substantially increased standard deduction, severely limited itemized deductions and no personal exemptions, an increased

The Tax Cuts and Jobs Act revamped tax depreciation in several ways, one in particular being the way vehicle depreciation limits are calculated. Below is a summary of the vehicle depreciation limits prior to the new tax law vs. the vehicle depreciation limits under the new tax law. Please note that the new limits apply to vehicles placed in service after December 31, 2017. TYPE OF VEHICLE LIMITATIONS – FIRST YEAR (OLD LAW) LIMITATIONS – FIRST YEAR (NEW LAW) Passenger Cars (Under 6,000 lbs) $3,16

Which is best for YOUR company? How does your business maintain your financials? Under the Tax Cuts and Jobs Act, taxpayers are eligible to select their accounting method according to the new limits in tax years beginning after December 31, 2017. Taxpayers which have an average annual gross receipts that do not exceed $25 million on the 3-tax-year period before the testing year are not required to use the accrual basis of accounting. Taxpayers which have an average annual gross receipts that do not exceed $

Set up a New Safe Harbor 401(k) Plan by October 1! Business owners and other Highly Compensated Employees (HCE’s) really benefit from a Safe Harbor 401(k) Plan. They can maximize their deferral contributions to the plan regardless of the level of participation by the Non-HCE’s. That maximum for 2018 is $18,500 plus a $6,000 catch up contribution if age 50 or older. The cost of this benefit is an employer contribution to the employees (HCE’s and Non-HCE’s). This safe harbor employer c

When you switch to a Solar Energy System or make any energy saving improvements to your home, residential and commercial owners are allowed a credit of up to 30 percent of the cost of the system, as well as installation. The credit is 30 percent from 2016-2019, but then continually drops to 26 percent for 2020, 22 percent for 2021, and 10 percent from 2022 and beyond. The new 2018 legislation allows owners to claim the credits as soon as the construction of the system is complete, as long as it’s oper