Category Archives: Tax Planning Strategies

More tax hikes in Republicans’ “tax cut” bill

More tax hikes that you can anticipate for 2018 under the Republican tax bill:

#3: It’s going to cost you more to move for work. If you moved to a new city for a job in 2017, you probably get a deduction for the cost of getting yourself and your stuff from your old home to your new one. Not in 2018. The deduction for moving expenses has been eliminated.

#4: Mortgage interest deductions are reduced on big loans. You used to be able to deduct interest on up to $1 million of debt on first and second homes combined. The deduction is reduced to interest on up to $750,000 of mortgage interest, starting in 2018.

“Nightmare” Republican tax bill brings year-end chaos for homeowners

Homeowners across the country looked to battle the coming $10,000 cap on state and local tax deductions by paying their 2018 property taxes in advance. Now the IRS has announced that only property taxes that have been assessed can be deducted in 2017. The announcement did little to clarify who can take a deduction now… Continue Reading

Could Trump tax bill trigger a housing crash?

Reducing or eliminating the deductions for state and local taxes won’t just cost some people money in terms of increased taxes. The Republican bills could also push down property values, attacking the most valuable assets many families have. As The New York Times reported,”An analysis of the Senate bill by Moody’s Analytics concluded that home… Continue Reading

Are you an audit target? Here’s the latest scoop from them that (might) know.

Who’s most likely to get audited by the IRS this year? According to Debra Estrem, Managing Director of the scarily-named Tax Controversy Group at Deloitte Tax LLP, the service is going to be focusing more on the wealthiest taxpayers, but is also going to be focusing on people with unusually large deductions and business losses.… Continue Reading

Want to deduct your driving expenses? Tax court says you better keep excellent records.

A Tax Court case this year drives home the point that there are no shortcuts or bypasses for people wanting to take deductions for using a car for business. The taxpayers who went to court reached one dead end after another in their quest for write-offs, but the case provides a roadmap for anyone looking… Continue Reading

“The Situation” is in a not-so-good tax situation

Did you know that “Jersey Shore” reality show personality Michael Sorrentino, aka “The Situation”, and his brother Marc, grossed almost $9 million in a variety of ventures over four years? Me neither, until I read the U.S. District Court indictment, reported inThe New York Times,charging the brothers with conspiracy and filing false tax returns. Michael… Continue Reading