Holiday Hours
Mary G. Stewart, CPA, PA
Taking the work out of book work
and taking the axe to your taxes.
Phone: (941) 258-3191
Fax: (941) 258-3192
E-Mail: Mary@PtCharlottecpa.com
Address: 2886 Tamiami Trail, Ste 10
Pt Charlotte, FL 33952
Business Tax Law Changes
Moving Expense Deduction Repealed
12/31/2017-1/1/2026 (Still in effect for military). Employer reimbursements are now taxable wages.
Health Insurance Mandate
This penalty is removed beginning in 2019 The market place is not eliminated, just the requirement to have insurance. Large employers with 50 or more employees are still required to offer health insurance
New Qualified Business Income Deduction
(199a Deduction) 20% of the lesser of net trade / business income or taxable income becomes a deduction on your personal tax return if taxable income is less than $315,000 for married filing joint or $157,500 if you are single. Taxpayers with relatively ‘high’ taxable...
Depreciation
Vehicles For the year 2018, you can expense up to $1,000,000 in heavy vehicles and equipment. This also includes appliances and furniture purchased for hotels, rental property, commercial property roofs, air conditioners, and security systems. Note: SUVs with less...
Method of Accounting: Cash Versus Accrual
Cash Method of Accounting is now allowed for any business (other than a tax shelter) whose gross receipts are less than $25 mill. This includes building contractors and personal service corps. Regulations have not been confirmed for the method of changing to the cash...
Meals and Entertainment—HUGE CHANGES
Employee Meals Reduced from 100% to 50% deductible: Meals for employees that are for the convenience of the employer used to be 100% deductible. They are now only 50% deductible. You should enter these expenses as an ‘other expense account’ named Employee and Travel...
Automobile Trade-ins
Automobile Trade-ins will now be treated as though you sold your old vehicle and bought the new one. This could cause you to have to claim capital gains or losses on your old vehicle.
Individual Tax Law Changes
Moving Expense Deduction Repealed
12/31/2017-1/1/2026 (Still in effect for military). Employer reimbursements are now taxable wages.
Alimony
For divorces effective after 12/31/2018 and alimony agreements modified after 12/31/18: There will be no deduction for alimony paid and no including of alimony received.
Itemized Deductions
2018 Medical Expenses: Deductible after being reduced by 7.5% of AGI. (Does not include over-the-counter items) State, local, and sales tax deduction are now limited to $10,000 MFJ Personal Casualty and Theft Loss Deductions are allowed only if a disaster is declared...
Capital Gains Rates
If your Taxable Income is Filing as Capital Gains Rate 0-$38,600 Single or Married filing separate 0 0-$77,200 Married filing joint 0 0-51,700 Head of Household 0 $38,601-$425,800 Single 0.15 $77,201-$479,000 Married file joint 0.15 $51,701-$452,400 Head of Household...
Health Insurance Mandate
This penalty is removed beginning in 2019 The market place is not eliminated, just the requirement to have insurance. Large employers with 50 or more employees are still required to offer health insurance
Child Deductions
$2,000 Child Tax Credit for children under the age of 17 Maximum of $1,400 of this credit is refundable $500.00 Non-refundable credit for children and dependents over age 17
Standard Dections
Standard Deductions have changed. NO PERSONAL EXEMPTIONS FOR ANYONE $12,000 Single and Married Filing Separate $24,000 Married filing Joint $18,000 Head of Household $1,300 Single: Additional blind, disabled or over 65 exemptions $1,600 Married filing Joint:...
2018 Tax Brackets
Tax Brackets Tax brackets have changed. Tax rates for basically reduced for all tax brackets and the brackets have changed. MFS - Married Filing Single, MFJ - Married Filing Joint, S - Single, FS - Filing Single Tax Rate Single and MFS MFJ Head of Household 10% Up to...