With the change in the season and the return of fall, many people begin the act of making their homes less cluttered, and we will all begin to get donation requests in the mail. As the weather cools, we tend to turn an eye towards end of year tax moves as well. The Tax Cuts and Jobs Act of 2017 brought about many changes in how businesses and individuals are going to operate starting for 2018 onward. With the deviations to the itemized deductions that we are all so used to, rethinking your charitable giving is a must.
Until the inception of the Tax Cuts and Jobs Act, entity selection by businesses was a fairly easy decision. In most cases, businesses chose a form of pass-through entity, given the high tax rate of thirty-five percent given to C corporations in the past. With the new changes brought forth in TCJA, and the lower tax rate of twenty-one percent, change is in the air. But what are the benefits of considering C corporation status? Unless you are a very large company, determining if you should change from a pass-through structure to a C corporation will not be an easy one.
When we are working, taxes are a part of daily life and influence the considerations that we take in our spending habits. Once we start thinking about retiring, we often forget to add in taxes as a component to our thought process. It is important to understand your tax situation in retirement prior to retiring so that you will be ready when the time comes to pay on the taxes due.
We’ve all thought it… Sitting on the beach in a tropical place while attending a quick meeting via your laptop before hitting the waves in the afternoon sun. Many people imagine that all they must do is get a work Visa, wave good-bye to family and friends and head to sunnier shores for a bit. Before you jump ship, or hop a plane, there are important tax items to take into consideration. The Internal Revenue Service will not ignore you just because you live in a remote village on a Fijian island. United States citizens (and resident aliens) for the most part, are subject to federal income tax on all worldwide income. There are a few ways to exclude some up to all of that income, depending on what you earn and how far you are willing to go to make that income not taxable to the federal government.