Tax & Accounting Insights for Irvine, CA. Expert Guidance from Bharmal CPAs
Surprise Tax Increase
By now, we all know about the changes, or at least some of the changes that have been brought about because of the Tax Cuts and Jobs Act (TCJA), also known as the new tax surprise include: Cap on state and local tax deductions (SALT)/ $10,000; Elimination of personal exemption; Elimination of miscellaneous itemized deductions; improve your home; benefits. Elimination [...]
2018 Tax Law Changes
There have been many tax law changes in 2018. While all the tax changes will not be covered in this article, we will address tax changes relating to individual taxpayers. - Tax brackets -Standard deduction -Personal exemptions -Expanded Child Tax Credit -529 Savings Plan -State and local taxes (SALT) -Mortgage interest deduction -Charitable Contributions -Medical Expenses -Obamacare Penalties -Estate Tax [...]
Is it Worth Amending Your Tax Return?
Whether you feel that it is worth it or not to file an amended return is not the issue. The issue is whether you are required to file an amended return. If there is a change in your filing status, income, or deductions, the IRS states that you file an amended return. Keep in mind that the IRS receives copies [...]
Does Your Business Qualify for a 20 Percent Tax Deduction?
The 20 percent tax deduction under new 2018 tax code Section 199A is a nice tax break for business owners, except for owners with high income who also fall into the out-of-favor group. In general, the out-of-favor group includes lawyers, doctors, accountants, tax professionals, consultants, athletes, authors, security traders, actors, singers, musicians, entertainers, and others. Getting just a little more [...]
How to Get Out of an IRS Penalty
You hate IRS penalties, right? Everyone does! There are a lot of strategies we can use on your behalf to potentially defeat an IRS penalty. Thanks to the courts, though, we now have a brand-new way to beat an IRS penalty. It’s Section 6751(b) of the Internal Revenue Code. This provision can get you out of a penalty—even if you [...]
Pass Through Entities and the Tax Cuts and Jobs Act
Pass through entities include, LLCs, partnerships, S Corporations and sole proprietorships. It means that profits and losses from the business pass through directly to the shareholder’s individual tax returns. Under the Tax Cuts and Jobs Act, for tax years beginning after December 31, 2017 through December 31, 2025, some individuals will be able to deduct 20% of their Qualified Business [...]