Category Archives: Tax Law
The Importance of Double-Checking Your Withholding Amount
The Tax Cuts and Jobs Act, which went into effect this year and so will affect 2018 tax returns filed next year, made significant changes that will affect how tax withholding is calculated. For instance, the new amendments increased standard deductions, discontinued other deductions, changed tax rates, increased the Child Tax Credit, and eliminated… Read More »
Maximize Tax Savings with Charitable Giving
Although most taxpayers are generally aware that they can save money during tax season through charitable giving, few are aware of just how many charity-related deduction options are available to taxpayers. For example, taxpayers who donate money or goods to a tax-exempt charity before December 31 can deduct the amount donated on this year’s… Read More »
I Missed the Deadline, Can I Still File My Taxes?
Most taxpayers were required to submit their 2017 taxes by April 17th. There are, however, exceptions for certain individuals, who are permitted to turn their taxes in later without even requesting an extension. To find out more about whether you qualify for late filing, you should consider contacting an experienced tax attorney who is… Read More »
Reporting Virtual Currency Transactions
With the advent of virtual currency, also known as digital currency, preparing income tax returns has become a bit more complicated. This is because, like transactions in any other kind of property, income from virtual currency transactions is both reportable and taxable. Those who fail to property report these types of transactions can be… Read More »
Requesting an Online Extension
While all tax returns were due on April 17th this year, there are options for those who may have trouble meeting this deadline. For instance, the Free File option allows taxpayers to apply for an automatic six month extension. These extensions are automatically granted, so those who request it will have until October 15th… Read More »
S Corporations Subject to Extended Three Year Holding Period
The Tax Cuts and Jobs Act, which was passed late last year, extended the holding period for carried partnership interests to three years. Carried interests are ownership interests in partnerships that allow the holder to share in the partnership’s net profits. These interests often result in the holder receiving capital gains that are taxable… Read More »
IRS Urges Taxpayers to Renew Their ITINs
Individual Taxpayer Identification Numbers (ITINs) are used by those who have tax filing obligations, but are not eligible for Social Security Numbers. These numbers expire after a certain amount of time and so must be renewed. Those who fail to renew their ITINs face serious penalties, so if your ITIN is expired, it is… Read More »
New Tax Withholding Tables to be Implemented
As part of the tax reform legislation that was enacted last month, the IRS released an updated version of the income-tax withholding tables for 2018. Employers are directed to use the new tables as soon as possible, although no later than the middle of February, at which point employees should begin to see an… Read More »
Deducting Home Equity Loan Interest Payments
Responding to a number of questions receive from taxpayers, the IRS officially announced that despite the recently enacted restrictions on home mortgages, many taxpayers can continue to deduct interest paid on their home equity loans, second mortgages, and home equity line of credit, regardless of how the loan is actually labeled. To speak with… Read More »
IRS Retroactively Renews Important Tax Benefits
On February 9th, Congress enacted the Bipartisan Budget Act of 2018, which renewed a wide range of individual and business tax benefits for 2017 that had technically expired at the end of 2016. The three most popular benefits affected by the renewal involve deductions for tuition, mortgage insurance premiums, and the exclusion of qualified… Read More »
