The changes to the estate and gift tax exemption made by the Tax Cuts and Jobs Act (TCJA) are effective beginning in 2018. The results should include fewer estates being subject to the 40% tax, and larger estates owing less tax. Before the TCJA, the first $5 million (as adjusted for inflation in years after…

Here’s a look at some of the more important elements of the new tax law that have an impact on partnerships, S corporations, and pass-through income and information on changes to the corporate income tax rates that take effect beginning in 2018 under the major piece of tax legislation called the Tax Cuts and Jobs…

The Tax Cuts and Jobs Act (TCJA) has effectively lowered the cost of acquiring capital assets by making substantial changes to the income tax rules for bonus depreciation and other “cost recovery.” There’s a lot to discuss, but please bear with me. There’s a good chance that one or more of these changes will change…

Individual Tax Rate Change The recently enacted Tax Cuts and Jobs Act (TCJA) imposes a new tax rate structure with seven tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top rate was reduced from 39.6% to 37% and applies to taxable income above $500,000 for single taxpayers, and $600,000 for married couples…

Effective December 11, 2016, the Maine State Housing Authority has issued a rule for a tax credit (up to $9,000) for expenses incurred for modifications made to a home to make it accessible to an individual with a disability who lives or will live in the home. This will be available for taxpayers whose federal…

Beginning on Jan. 1, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 53.5 cents per mile for business miles driven, down from 54 cents 17 cents per mile driven for medical or moving purposes, down from 19 cents 14 cents per mile driven in service…

On Tuesday, November 22, 2016, a federal judge temporarily blocked the new overtime pay rule that was to go into effect December 1, 2016. What does this mean? Employers currently do not need to comply by the original December 1 effective date. The injunction is temporary pending further review of the court. We will keep…

As 2016 winds down, now’s an excellent time to review your current tax planning strategies to ensure they’re still meeting your needs and to develop plans for 2017. It’s also a good time to take advantage of last-minute planning opportunities that could save you money now and in the coming year. With all that in…

Do you have a nanny or babysitter, a cleaning person, a caretaker, a health aide or private nurse? If so, you may have a household employee. Generally, if you control what work is done, when, and how it gets done, the worker is your employee. It doesn’t matter if you pay by the hour or…

On October 18, 2016, the Social Security Administration announced the 2017 tax rates and wage base. The Social Security wage base will increase from $118,500 to $127,200 for individuals starting January 1, 2017, and there will be no limit for Medicare wages. The tax rate for Social Security remains at 6.2% and Medicare at 1.45%…