Skip to main content

THURSDAY TAX TIDBITS

Tax Law News: Four States Sue the IRS


The IRS is being sued? How and why? The states: Connecticut, Maryland, New Jersey, and New York have filed a federal court lawsuit to eliminate the cap on state and local taxes (SALT) deductions under the new tax law. In the past, there wasn’t any specified limit to the quantity of taxes one could claim, however now, married taxpayers cannot claim more than $10,000. This can mean a higher federal tax liability for some taxpayers. Not only us this inconvenient for individuals, but it will also cause major social issues. In fourteen states, the SALT cap will drop home values, which leads to a huge loss in societal home equity value. For additional information, check out Forbes article with more details: https://www.forbes.com/sites/kellyphillipserb/2018/07/17/states-sue-irs-treasury-to-strike-down-salt-cap-under-new-tax-law/#54061fa55303

Comments

Post a Comment

Popular posts from this blog

THURSDAY TAX TIDBITS

How does Trump's new tax law affect you? Under the Trump Administration, there have been many changes made. Read through this brief article on how it may impact you; if you come across any confusion or questions, do not hesitate to reach out! The Act  eliminates most  itemized deductions .  That includes moving expenses, except for members of the military. Those  paying alimony  can no longer deduct it, while those receiving it can. This change begins in 2019 for divorces signed in 2018.  It  keeps deductions  for charitable contributions, retirement savings, and  student loan interest .  The Act  limits the deduction on mortgage interest  to the first $750,000 of the loan.  Interest on home equity lines of credit  can no longer be deducted.  Current mortgage holders  aren't affected.  Taxpayers can  deduct up to $10,000 in state and local taxes . They must choose bet...
Post a Comment
Read more

Stimulus Check Information

Customers who use tax preparation services such as H&R Block, TurboTax and Jackson Hewitt complained on Twitter and to The Post that they didn’t get their stimulus payments Wednesday. Up to 21 million tax filers could be affected, said consumer law expert Vijay Raghavan, because the IRS does not have these people’s direct deposit information on file if they received an advance on their tax refund from these companies or had the fee for tax preparation taken out of their tax refund. The reason is that tax preparation companies received these people’s tax refunds first, deducted their fees and then distributed the remaining refunds to the customers. Because of that, the IRS had a “temporary bank account” on file that the tax preparer created for the 2019 tax season, Raghavan said.
Post a Comment
Read more

THURSDAY TAX TIDBITS

Tax Law Changes: Auto Deductions The biggest change in deducting automobiles is an increased deduction for car depreciation for cars used for business. This change may make business owners consider buying cars versus leasing. With Trump’s tax plan, you can take an $18,000 deduction for a new car the first year you own it.   Bigger depreciation allowances for passenger vehicles For both new and used passenger vehicles that are acquired and placed in service after 12/31/17 and used over 50% for business, the Tax Cuts and Jobs Act dramatically and permanently increases the auto depreciation allowances. For vehicles placed in service (put to business use) in 2018, the maximum allowances are: * $10,000 for Year 1 or $18,000 if you claim first-year bonus depreciation (see below). * $16,000 for Year 2 * $9,600 for Year 3 * $5,760 for Year 4 and thereafter until the vehicle is fully depreciated If you don’t use the vehicle 100% for business, these allowances are cu...
Post a Comment
Read more