Act now for tax reform and thousands of people's savings

I have a friend of a tax accountant lawyer. He likes chatting. In any case of telephone, e-mail, Skype, smoke signal, he is usually suitable for 3-4 calls.

I have not heard from him since late November.

I telephoned his office in the first week of January and saw him. His secretary stated that he was present at the tax planning meeting.

I tried it again last week. Same. Another meeting of a tax attorney.

I finally wrote to him that I am leading a request for urgent tax opinion. It brought me a return.

The request for opinion was mine. He is in the accident.

You seem to have studied Tax Cuts and Jobs Act which is a new law to manage our tax code since the beginning of this year.

There is a good reason for my urgency, I lose money every day in 2018. That means you are not acting by finding new opportunities and threats in terms of tax.

If you act now, this year you will save thousands of potential thousands of federal taxes. The more you act quickly, the more people you can save.

There are things to be careful about here ...

Reduction of tax on pass-through entity

Passthrough is a business entity that has not paid tax. "Passthrough" the benefit or loss to the owner for tax purposes. They include limited liability company (LLC), partnership and S corporation.

As of January 1, many passthru owners will make payment No federal income tax 20% of the profits from their business that street, zip, nada. For many people this could mean a significant reduction in effective federal income tax rate.

For those with low taxable income that fit well into the six figures, the rule of this gift to pass-through owners is simple. After that, they become more complicated.

However, no matter how you slice it, the new tax law Huge Tax conservation

• action item : If a lawyer, doctor, or other expert is in charge of private practice, immediately take tax advice and see if you can divide your business and save thousands of tax deductions.
• action item : If you are a self-employed person, or are operating through LLC or small partnership, we will immediately pay personal salaries to your bones. It enhances the "profit" of your business ... the amount you can deduct 20% tax.
• action item : Even if you are hired, would you recommend consulting with a tax attorney to become a consultant? For many people, the answer will be yes.
• Bonus chips : Stock owners of real estate investment trusts (REITs) or listed partners (PTPs) do not tax 20% of qualified REIT dividends and PTP income.

Abolition of major deduction

The official goal of the tax bill agreed in late December was to reduce the tax rate and simplify the tax code. Initially partially reached - at least until the break in 2025 - but the second did not happen. Instead, legislators included some "simplification" attempts that could potentially cost valuable if you are not prepared for them.

First, when the word "abolishment of SALT" began to appear at the end of last year, I thought that the Trump regime would abandon the abolition of nuclear weapons during the Cold War era between the United States and Russia. The truth was better, but for many of us it was not that much.

From this year you can deduct only up to $ 10,000 from state and local income tax and property tax (SALT) from your federal tax. It's not a big deal, as the standard deduction for Joint Filer is doubled to $ 24,000. But for many people, not high tax countries such as New York and California, this means that it is effective To increase By federal tax

However, lawmakers are considering ways to avoid this. Do you know the section of the local newspaper that covers state legislative issues? Time to read them.

Secondly, the new law eliminates all other obligations, including those for this administrative expenses. If you are doing a small business from a remote location or your home at the request of your employer, please kiss the deduction for your business at home. In my case, for example, it is a big tax increase.

action item : Determine if your state and parliamentarians are considering measures to convert income and property taxes into a form that can be deducted from federal income tax. Let's know what you think!

action item If you are working from home, model the impact of tax due to loss of home business deduction. You can rearrange things at least in part.

Bonus chips : Accrued expenses Deduction of a large number of investment fees and expenses related to employment expenses, employment expenses, tax preparation preparation fees, home appraisal expenses, loss of lost theft, gambling loss, IRA It might be It was abolished in response to IRS's ruling.

Please prepare to cut tax on your retirement income

If you have not retired yet and you are learning the proper annual income, action item For you:

1. If you do not have it yet, open Roth IRA.
2. Let's establish Roth IRA and Company C as the sole shareholder.