Date: March 11, 2018
April 10, 2018 (75 days ago)
NEW TAX LEGISLATION REQUIRES PLANNING 5. Getting crdi for your kids Though many taspuyers appraciate the income tax cuts in the Tax Cuts and Jobs Act (TCIA) passed late last year others are skepeical that it will simplity thele tax planning. With every simplificatioe, there are may more tax issoes that saill require planning to realine extra tax bemeits He are sevce of them 1. Plamifor all the iat parts Inmany way%the TCJAgnes withoneband and takes away withthe other The-giving hand-provides alower income tax rate structure and a higher standand dedaction, while the Taking hatd gets rd of per mal esomptio a suspends many itomuod doductos an lints dedoctons t at roman. There are There are many new tax benefies for pareets is the TCIA The child tax crodse doules 0o $2,.000 and the phase-out throbold jumps to 5400,000 from $110,000 previoelly for joint ikers, making it nailable to moee taxpayers Dependents ineligible foe the child tax crodit can qualify for a new $800 per-person family tax croditOn top of tha, distributions from 59 edacation sanings plats can now be wsed to pay private school tition for K-12 stadens Howard J. Michael H. Reinsch, Prosser, Eric Gilbertson, CPA CPA sting to disappeari in breaks y variables that determine wbether you cone out abead or behind and a tax planting session can help you figure it all out 2 Getting creative and Bexibk abost inemiring Many nemzed ded.ctions retain the sume, others were elmiused completely and some bave ne% limits For eample, while charitable coetribations are sill a qualiiod dodaction, thene is now a $10,000 7Fag the od complesities crtx planning was built on any othe elloing espiring tax wisionsyoun to u your planc personal evemptioss miscellaneous itemized doductions; bome eqaity interest, alimony doductions (exrng in 201% the additional dhild axcrodit: theft and casualy losses and the domestic production activity dedactionIDPAD esbined cap on state, local and pesperty tax deductioes. The new constraints meas considering Many areas of the tas oode remain uegely the sane and contuain beth potential pitfalls and opportutities to fnd tax snings Manaping capital gains and tax-kow hanesting, charitable activity deductioes and a tax-advantaged retiremen stralegy are just a few areas where you can uslock extra valae with smart planning. reative solutbions to maximire thesc dodustions One idea is to make bittor use of the donation of use of the donasion e Joseph R Mohrhauser CPA/PFS, CFP Leon David D Schmit,Jessen, appeaciated sock as part of your charitable giving CPA Draling with mw complet in small busineowamhip The big changes to tax reform this year may be disoecerting at irst, but in change there s opportunity Semall business owners and sole proprictors will have to do a complicated calculation to see bow much of the 20 percent roduction to po-hroug qual h benes moome they can take. It d ends on After the dust setkson the 2017 useason get ready to take a detailed look at what 201 S tankom prodession and your expendiears on capital and wages This cakeulation can get compliased very meats for you 522 4th Street, Suite 200 Sioux City, IA 51101-1620 712.258.5550 Fax: 712.277.6705 www.krpcpa.com Loderstanding the sewly changed "marriage pmal The diahantage for married couples within the tax oode is stll very mach in place, but it is changing For instance the marriape penalty that had gvm unfavorable income tax rats to mariod joint flers hen oonpared to single individals goes away in the TCIA for most inome levels But it rears its head again in the $10,000 cotbinod statc local and proparty tas lmittion which does not double foe Kevin CPA POCESER&CO LU joint filers This is something youll have to plan around.